Building Hope Finance closed on a 12-month predevelopment loan to North River Charter Academy (NRCA), a charter school managed by Forza Education Management, LLC, to support critical early-stage project costs.
North River Charter Academy secured a Letter of Intent (LOI) to purchase 11 acres and develop a 65,000-square-foot, two-story facility for 794 K-6 students when fully enrolled.
Building Hope also is the schools’ Municipal Advisor for its bond financing plan, targeted to close by June 2025. The bond proceeds will repay the predevelopment loan, positioning NRCA for a smooth path to securing its permanent facility.
A predevelopment loan for a charter school is a loan that helps fund expenses before construction begins. These expenses include appraisals, market studies, legal costs, and project management.
For early-stage schools, securing predevelopment funding for their school facility projects poses a considerable challenge, as lenders are generally hesitant to extend loans until the school has acquired a property or finalized architectural plans and construction pricing.
A municipal advisor is a financial expert who advises charter schools on how to issue debt and structure financial products such as bonds. They help clients obtain financing at the lowest cost by providing advice on the structure, timing, and terms of debt issues, preparing financing options for the issuer, help select underwriters, evaluate bond market conditions and prepare closing documents.
If you want to learn more about Building Hope or Bond Financing, contact us at info@bhope.org
.png)
.png)
