Madison Preparatory Academy - School Information System

younger schools in some cases. In 2005, NCB Capital Impact used $6 million of an $8 million ED grant to
establish The Enhancement Fund (TEF), in partnership with a major pension fund. This $60 million fund is
providing capital to charter school facilities projects in Florida, Georgia, Michigan, Minnesota, Ohio and
Wisconsin. TEF offers loans of up to $8 million with terms and amortizations of up to 25 years and fixed or
variable interest rates. These loans may be used for acquisition, renovation, construction or leasehold
improvement projects. The balance of the grant is used to provide credit enhancement to construction,
leasehold improvement and NMTC transactions in the same geographic area.
Public Financing Authority (Madison, WI) is a unique governmental entity established under Section
66.0304 of the Wisconsin State Statutes, authorized to issue tax-exempt, taxable, and tax credit conduit bonds
for public and private entities throughout all 50 states. PFA is jointly sponsored by the National Association
of Counties, National League of Cities, Wisconsin Counties Association and League of Wisconsin
Municipalities (the “Sponsors”). PFA’s mission is to provide local governments and eligible private entities
access to low-cost, tax-exempt and other financing for projects that contribute to social and economic growth
and improve the overall quality of life in communities throughout the country. They provide charter schools,
which lack statutory authority to directly tax or bond, the ability to finance capital expenditures. By serving as
an issuer of conduit debt, PFA enables 501(c)(3) charter schools to finance their long-term capital needs
through access to the tax-exempt bond market. Due to its nationwide scope, streamlined issuance policies and
ability to aggregate multiple issuances, PFA is able to provide bond financing in a way that is efficient and
affordable for 501(c)(3) borrowers.
Raza Development Fund, Inc., a support corporation of the National Council of La Raza (NCLR), was
established in 1998 as the community development lending arm for the NCLR. RDF’s mission is to invest
capital and create financing solutions to increase opportunities for the Hispanic community and low-income
families in the areas of quality educational opportunities, affordable housing and access to quality primary
health care. RDF provides predevelopment, leasehold improvement, acquisition, construction and minipermanent
loans to charter schools, along with technical assistance for business, growth and facility planning.
In addition, RDF employs its $14.6 million in ED grant funds to provide guarantees for both leases and loans
to charter school landlords and lenders. Since its inception, RDF has approved $53 million in direct financing
for 55 charter schools, CMOs and nonprofit real estate developers to acquire or construct facilities in 18
states, resulting in the creation of 28,200 new student seats. This financing has supported facilities projects
with total costs of $170 million, leveraging additional support and financing from traditional lenders,
including Bank of America, Wells Fargo Bank, Citibank, JPMorgan Chase Bank, Prudential Social
Investments and State Farm Insurance Company. To date, RDF has provided capital to 200 organizations,
funding loans totaling $139 million. This financing has leveraged $800 million in private capital for projects
serving low-income families and individuals.
Wisconsin Health and Educational Facilities Authority (WHEFA) was created by the Legislature in 1973
(Chapter 231, Wisconsin Statutes), has been providing active capital financing assistance to Wisconsin health
care institutions since 1979. In 1987, WHEFA's charter was expanded to include the issuance of bonds for the
benefit of independent colleges and universities and certain continuing care facilities. In 2004, WHEFA's
charter was further expanded to include the issuance of bonds for the benefit of private, non-profit elementary
or secondary educational institutions. In 2009, WHEFA's charter was further expanded to include the issuance
of bonds for the benefit of non-profit research facilities. The organization serves a conduit financing agency,
assisting eligible Wisconsin health care and education institutions with obtaining tax-exempt financing,
including charter schools that are accredited by WHEFA. Its staff assists health care and educational
institutions in analyzing financing alternatives and in structuring revenue bond issues to meet their needs.
This financial advisory service is available to all eligible borrowers even if WHEFA is not the ultimate issuer
for the financing. Funds for each project are obtained through the sale of revenue bonds of the WHEFA.
Bonds are sold to institutional lenders in "direct placement" transactions and to individual and institutional
investors in "public offerings." Bond sale proceeds are loaned by WHEFA to the borrowing institution or
project sponsor. No state or other public funds are used.
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