Local Initiatives Support Corporation
Local Initiatives Support Corporation (LISC) supports educational facilities and created a national program, the Charter School Financing team, to finance charter school development across the country. LISC has invested over $20 billion since 1979 including over $400 million to over 200 charter schools.
Open process / apply anytime
Loan size (range, $): $1M-$10M ($4M avg.)
Current portfolio: n/a
Cost share (equity) required: Yes (5% to 10%)
Collateral required: Yes (real estate)
Standard CDFI due diligence
LISC invests in housing, businesses, jobs, education, safety, and health. It works with a network of community-based partners and has 35 local offices, a dedicated rural program active in 45 states, and affiliated entities. LISC believes all children deserve access to a successful public school in their community and it funds school construction for high-quality public charter schools that predominantly educate students from families with incomes below the national average.
Through its dedicated charter school program, LISC offers facilities financing and pro bono facilities technical assistance. The Charter School Financing team can provide loans to acquire, build, or renovate facilities and provides technical assistance through SchoolBuild, a free on-line resource. SchoolBuild leads schools through four key stages in facilities development: understanding needs; tools and templates; financial planning; and funding options. LISC’s SchoolPrint: Charter School Project Management assists charter schools in identifying and working with quality construction service providers and/or navigating the facilities development process.
Focus Areas:
Geographies: Nationwide; preference where LISC has established local presence or partnerships; more active in urban areas but increasing rural investing; no historical lending activity but will consider projects in Indian Country
Sectors: Affordable housing, community leadership, economic development, education, financial stability, health, policy and research, safety and justice, sports and recreation
Schools: Prefers schools with at least two years of operating history; underwriting criterion around population served (free-and-reduced-lunch and/or demographics), academic performance (standardized testing), financial performance (demonstrated by audited financials), and financial sustainability
Xinaxcalmecac Academia Semillas del Pueblo (East Los Angeles, CA)
In 2008, LISC provided a $1.7 million loan to Tzicatl Community Development Corporation, the real estate affiliate of Xinaxcalmecac Academic Semillas del Pueblo, a charter elementary school in East Los Angeles. This loan helped the school acquire and renovate two sites. The school has a large population of students learning English as a second language, and is dedicated to student academic excellence, Native wisdom, and appreciation of the cultural and intellectual heritage of Indigenous Peoples and the promotion of positive social awareness.
Charter schools seeking facilities technical assistance or financing should contact the Charter School Financing team. For facilities capital products, the underwriting process can take anywhere from three to four months, depending on the size, complexity, and readiness of due diligence information.