Trying to help students with disabilities learn is a tough job. To be successful, school administrators need to focus on educating students, not on charter school funding or operational issues. As a start-up charter school, Learning Path Academy, located in West Palm Beach, FL, found themselves in need of a charter school working capital solution, and turned to Charter School Capital.
Learning Path Academy focuses on students with learning and language disabilities who may struggle in the traditional public school system. After securing school facilities, school administrators were ecstatic to open their doors last August. They believed and planned on state funding, but quickly learned that funding was based on making expenditures that would be reimbursed.
“As we started operating, the implementation grant we received from the state of Florida informed us that we had to spend the money, and then we would be reimbursed,” explains Isis Rosso, co-founder and director of operations at Learning Path. “Our first check from the district was tiny. It was enough to pay the rent and clean the building, but we were basically working for free for three months. That’s when we called Charter School Capital.”
Charter School Capital was able to furnish the working capital Learning Path needed, enabling them to continue offering the special attention and customized learning plans to their students in need.
The school’s special system, which focuses on a low student-to-teacher ratio and staff experienced with special needs education, also asks for heavy involvement from parents and reports on student progress regularly. Because of this, families have been tremendously pleased with Learning Path and enrollment is on the rise. The fairly new school currently serves 118 students in grades Pre-K through 4th, and is already making plans to add 5th grade and grow their student enrollment to 192, the maximum allowed currently.
To address this anticipated growth, school administrators understand that sufficient and flexible capital must be available for them to accomplish their goals.
“Knowing that my budget is going to grow, and knowing that Charter School Capital can help fill in the gaps where necessary, is a huge sigh of relief,” concludes Rosso. “We have developed such a wonderful relationship with the Charter School Capital team. They have great patience and help us do what we’ve got to do. These are the people who are helping me build my dream school.”
Category: Charter School Success Stories
Providing a quality education to at-risk students often requires multiple resources. One-on-one teacher instruction, access to current technology and customized lesson plans for students with special needs are just a few of the tools necessary to help children from underserved communities reach their potential. This formula has lead to success for Skyline Education, a charter management organization in Arizona.
The multi-disciplined approach to education that Skyline’s six campuses provides “comes at a fairly high up-front expense,” says KJ Weihing, vice president of finance at Skyline Education. “We wanted to make purchases but didn’t have the up-front funding. That’s why we called Charter School Capital; they helped us get that short-term funding.”
Skyline opened its first campus in 2000, but it wasn’t until 2009 that organization began to experience rapid growth, adding five new campuses from 2009 to 2012. Skyline now serves more than 1,000 students in socially and economically diverse communities, including the Gila River Indian Community in Arizona.
Such dramatic growth created a real need to access working capital funding, explains Weihing. Skyline Education knew that it would be receiving its funding, but given the uncertain payment schedule from the State of Arizona, they didn’t know when. Skyline administrators knew they needed some form of help to even out their budget throughout the year but were very wary of outside funders until they met Charter School Capital.
“I was impressed with them and their fee structure,” says Weihing. “A lot of times there are organizations that will lend for high interest because they know you can’t get funds anywhere else. Charter School Capital’s fee structure was not outrageous [like that].”
The relationship Skyline has developed with the Charter School Capital team is rooted in much more than just financial terms. Weihing would recommend to any charter school needing funds to start-up or for growth, that they just “start the process,” stating that the two organizations have formed a real partnership dedicated to the success of all Skyline Education’s schools.
“Last year, we wanted to make new computer purchases for one of our schools, but we didn’t have the current funding on hand to make that happen. So we worked with Charter School Capital to provide us with the funding in order to get those computers into the classroom sooner than we would have been able to if we were waiting on funding,” concludes Weihing. The whole process has been “extremely seamless, quick and easy; I’m glad we did it.”
“Without Charter School Capital, we honestly wouldn’t exist.”
Those are the words of Ricardo Mireles, executive director of Academia Avance charter school in the Highland Park neighborhood of Los Angeles. Fortunately, Charter School Capital was there so that he and his team could focus on what really matters – their students. Academia Avance was founded in 2005 with 100 students in the 6th and 7th grades. Today, it serves 500 students grades 6-12, preparing them for college and career.
Dedicated to the idea that all students have a right to pursue a college education, Academia Avance offers rigorous course work relevant to today’s changing world, from language classes in Mandarin Chinese to computer classes in programming and robotics. However, what makes the school special is that it doesn’t just rely on books and testing to teach their students. With the understanding that hands-on experiences are vital to academic excellence, the school combines traditional classroom study with learning through projects, multi-cultural experiences and even internships at local businesses.
The results of this inter-disciplinary model are indisputable. In 2012, 100% of Academia Avance’s graduating students were accepted to 4-year university programs – a truly remarkable achievement. But it almost didn’t happen.
When Academia Avance was founded, funding for the school from the state of California proved inconsistent. The school wasn’t able to secure a traditional bank loan because they didn’t have a building to put up as collateral. To pay the bills, school administrators went looking for alternative options in charter school financing. That’s when they found Charter School Capital.
According to Mireles, Charter School Capital provided the flexibility, patience and professionalism in charter school funding needed to get Academia Avance up and running. “They allowed us to say ‘this month we need this much.’ I’m really appreciative of how Charter School Capital was able to understand what our need was.” Mireles believes he has a true partner in Charter School Capital, one that genuinely believes in the school’s mission and supports what the school is trying to accomplish. “It allows us to stay focused on our mission and our students.”
San Tan Learning Center began its third year partnering with Charter School Capital to manage the school’s incredible growth since the school was formed in 2006. In that time, the school has grown from 250 students housed in a single 20,000 square foot campus to more than 650 students on two campuses totaling more than 60,000 square feet. That type of “whirlwind growth,” as Dr. Kris Sippel, Principal of San Tan Learning Center, refers to it, means that the school has increased their need for ongoing access to growth capital for more desks, computers and space to house the students.
A few years ago, a lapse in funding by the State of Arizona combined with the school’s rapid growth meant the staff at San Tan Learning Center, based in Gilbert, Arizona, found themselves wondering where the money was going to come from to meet their changing needs. “I remember sitting in my office thinking ‘how am I going to get that $200,000 that I need’?” recalls Dr. Sippel.
“I was going through the mail and came across a postcard from Charter School Capital so I put in a call and a staff member called me back right away to talk about our needs. Their team got me comfortable with the process, pulled the documents together and presented to our Board of Directors.”
Dr. Sippel recognizes that at first, his board was hesitant. “They were worried about fees and paying back a loan with interest,” says Dr. Sippel. However, once the board understood that the funds provided by Charter School Capital were not a loan, the solution was embraced. “This doesn’t have all the rigmarole of a loan.” Dr. Sippel explains, “when I need funds, I get an email from Charter School Capital, process the paperwork, and provide the documents to get the funding – it’s so streamlined, it’s beautiful.”
Growth and success for San Tan Learning Center means that they are able to provide quality middle and K-6 education to local students in their community. Dr. Sippel knows that what the school has to offer is unique,“we are a very family-oriented community; it just feels different at San Tan.” And he recognizes that Charter School Capital offered the school an equally unique experience, “Charter School Capital has done such a good job making us feel a part of something –that’s rewarding. You don’t get that feeling at a bank –the relationship piece just isn’t there.”
Dr. Sippel concludes with some advice for other charter schools experiencing rapid growth and facing financial concerns, “Ask yourself, ‘who’s going to sign a bank’s personal guarantee?’ Because it is a big deal; at least it was for me.” But Charter School Capital changes all of that. When describing the process, Dr. Sippel refers to something he calls the “3 F’s”: “Finding. Funding. Fast. That’s what they did the first time and that’s what they continue to do.”“It is a big relief to know that, with Charter School Capital, our organization can stand alone.”
Even the most successful organizations face difficulties when expanding, and charter schools in particular face extra challenges. Public funding is determined by current, not projected, student enrollment. Advances for capital needs can be difficult to obtain from traditional banks, particularly given the often unfair reputation charter schools have as risky investments.
This is the situation that faced I CAN SCHOOLS, an ambitious charter network based in Cleveland, Ohio, which overcame charter school funding issues with help from Charter School Capital.
Founded by eight local teachers in 2010, I CAN’s first campus opened serving grades K-8. The school was an immediate success, earning a “B” rating in its first year – the first charter school in Ohio to achieve that feat. But things weren’t easy. After operating two years in “survival mode” – as school co-founder and CEO Marshall Emerson III describes it – the school’s administration realized that additional help was needed to expand. So they turned to Charter School Capital.
“Banks don’t get it sometimes. They don’t get that we’re doing good for the community,” explains Emerson. “Charter School Capital was able to assist with advice and with the financial landscape. Moreover, they have been very willing to make connections and introductions that help us.”
The industry expertise Charter School Capital provided combined with working capital funds enabled I CAN to realize several goals in a short period of time. Now, the charter school network operates seven campuses serving approximately 2,200 students across Ohio, including three new campuses in Akron, Maple Heights and Canton that just opened in Fall 2013. Emerson states that the network’s rapid growth is rooted in a desire to serve more kids, in particular low-income and minority students that are at risk of dropping out.
“Students mentally drop out in 7th grade; they just stop going to class in 12th,” says Emerson. “The better foundation we can give them, the better students do in the long-term. That’s why we’re here.”
During the next decade, I CAN has an aggressive plan continuing its expansion in Ohio, and eventually entering additional states, all in partnership with Charter School Capital.
“We’re able to speak confidently now about growth thanks to Charter School Capital,” concludes Emerson. “We were able to pay off a lot of our bills and then fund our growth. It’s been a real blessing.”
Share What School Choice Means To You
In honor of National School Choice Week (Jan. 26 – Feb. 1, 2014), Charter School Capital wants you to share what school choice means to you and your community.
Open now, the “What Does School Choice Mean to You” contest is accessible on Charter School Capital’s Facebook page. Students, parents, educators, and supporters from the community all are encouraged to share their stories about how charters and choice have impacted their families and lives. As a bonus, everyone who shares a story is automatically entered to win a free Kindle Fire HD.
School Choice has become a powerful movement during the past decade. Charter schools today are positively impacting communities across the nation – increasing educational opportunities and driving up academic performance. A 2012 study by the Florida Department of Education shows that charter school students are outperforming their traditional public school counterparts on almost all benchmarks. In California, underserved or disadvantaged students who would have been left behind in their education have now received their degrees thanks to charters focused on the goal of getting everyone to the finish line.
Freedom to choose the best educational environment for yourself or your children has never been so important. In this rapidly changing digital world, flexibility and innovation have become cornerstones to success. Charter School Capital understands that, and that is why we are proud to be the nation’s leading working capital and facilities funding source for charter schools in the U.S.
Charter School Capital funds more than 400 charter schools serving 400,000 students from California to North Carolina, Ohio to Arizona. That is why we want to hear from you. Coast-to-coast, school choice is making a positive difference in education and we want to hear those stories. Share yours with us today, and then share it with your friends.
You can share your story and enter to win the Kindle Fire HD here. (Full link below) Also, be sure to keep your eyes on the Charter School Capital blog. We’ll be taking excerpts from your stories to share with our readers. We might just share yours!
https://www.facebook.com/CharterSchoolCapital/app_1448834632002022
Charter High School of the Arts – Multimedia and Performing (CHAMPS) in Van Nuys, California has a diverse culture and unique educational focus. However, CHAMPS faced financial pressures as a result of California deferrals. Although grants and philanthropic funds helped somewhat, the school struggled with the same funding uncertainties impacting the operations of many charter schools. Charter School Capital stepped in to provide operational, working capital charter school funding to keep CHAMPS’s doors open.
“Charter School Capital kept the school afloat at a very bad time. It was instrumental in keeping us going,” says Joanne Saliba, director of CHAMPS.
Saliba first joined the charter school’s Board of Directors and her involvement led to taking on the Director position at CHAMPS. She had to quickly learn how charter schools receive funds from the state, how state legislation was impacting the school, and how Charter School Capital could help her through the process. She found herself contacting the Charter School Capital team often for information to help her in her new role.
“I think the Charter School Capital team is terrific. They are amazingly responsive and so helpful,” says Saliba. “Every person I’ve dealt with has just been great. There hasn’t been one time that I haven’t heard back immediately or gotten a very supportive response.”
CHAMPS is now experiencing great success. The school currently boasts an enrollment of 952 students in grades 9-12 and focuses on performing, multimedia, digital arts, film, dance, music, drama, and other programs. More than 13 languages are spoken in the halls and graduation success rates are exceptionally high. The school’s administration knows that this is due to the dedication of its students, staff and the combined interest in furthering the arts rather than cutting arts programs. This success is in part due to the partnership with Charter School Capital.
“In the day-to-day operation there is no question that Charter School Capital’s support is vitally important for our cash flow. Whenever there is a glitch or I find something I need, I feel very confident that we’re working together and that is a really good feeling,” explains Saliba.
CHAMPS and Charter School Capital will continue to work together to identify ways to meet the charter school’s funding needs. Ultimately this allows Saliba and the rest of her team to continue serving students, educating in their unique way as they prepare students for a lifetime of success.
Planning, locating and securing facilities is challenging for most charter schools, as Arizona College Prep Academy in Tucson learned through experience. The charter school recently held a grand opening celebration of it’s new facility that now accommodates classes and extra-curricular activities for nearly 125 students with room to grow.
Arizona College Prep Academy opened originally in 1997 as an affiliate to AmeriSchools network and subsequently became an independent charter school in 2012. Growing and in need of a new facility, the charter school’s administrators were faced with unexpected challenges. Banks would not provide the charter school facilities financing because they viewed Arizona College Prep Academy as a new school and therefore high risk. Likewise, they were ineligible for start-up funds because they were a pre-established charter school transfer. In an effort to find resources they desperately needed, school officials contacted several third-party organizations. However, none came through. Enter Charter School Capital, the only organization with ability, knowledge and desire to help.
“We couldn’t have even looked at a building like this without Charter School Capital,” explained Freddy Mendoza, assistant principal and co-founder at Arizona College Prep Academy. “They made deals available to us that wouldn’t have been otherwise. Once the deal was made, they were critical in helping us understand what we needed to do. Their team made it easy for us.”
Charter School Capital provided the technical commercial real-estate knowledge and assistance in addition to the facilities financing necessary to purchase the property and then lease the property back to the charter school. Charter School Capital will retain ownership of the property, alleviating the need for the school to spend lots of time focused on building repairs and maintenance and instead focus on their mission – educating students.
“It’s rewarding to know that Arizona College Prep Academy stayed on mission and we were able to help them find a facility that matched their goals,” said Stuart Ellis, president and CEO of Charter School Capital. “The charter school is now in a new space that matches their educational mission and culture, providing stability for college-bound students for years to come.”
Students, parents, teachers, and the Tucson community are excited. The new building is perfect for the charter school’s needs and gives them room for continued growth. Last week the community gathered to celebrate the opening of Arizona College Prep Academy’s new facility. Alumni, educators, dignitaries, community representatives, students, family, and friends of the charter school joined together to recognize the milestone and mark the building as their own.
Alumni drew outlines of their hands and signed their names along a wall mural to support the strong future for Arizona College Prep Academy and its students. Olympic Gold Medalist, Chrissy Pernham was on hand to share her thoughts about the importance of education and perseverance. The charter school has a bright future with a great new space that will support them as they grow.
Congratulations, Arizona College Prep Academy. The Charter School Capital team wishes you all the best.
Charter School Capital was excited to learn that San Tan Learning Center was presented the Large Business of the Year Award by the Gilbert Chamber of Commerce.
The San Tan Learning Center, founded by Kristopher and Rita Sippel, has experienced growth of more than 1200% since 2006; expanding from 45 students to 550 students. The charter school has also nearly doubled its budget, at $3.1M, and now serves pre-K through middle school students.
According to the Gilbert Chamber of Commerce, “San Tan Learning Center finds uniqueness in the system that allows their teachers to instruct each child as an individual at his or her own level of mastery. Parents are considered to be partners in education and regular communication and goal-setting are part of the school’s culture.”
Charter School Capital first began working with San Tan Learning Center in 2011 and has been impressed with their dedication to the advancement of their programs and focus on the student educational experience. Congratulations San Tan Learning Center!
View the original article in AZCentral.com.
In the mid-1980s, San Bernardino’s traditional public high schools were suffering a dropout rate of 40-50%. The system was failing. The community was in desperate need of help, and The Provisional Accelerated Learning (PAL) Center opened to provide a new path.
Understanding how critical a strong education is to success, The PAL Center began as a not-for-profit tutorial program in 1984 to help those students most at-risk. As the program expanded, it evolved into a charter school that now serves approximately 700 students. The PAL Center welcomes students in grades 9–12 hoping to earn their diploma as well as 19–21 year olds seeking job skills training and career placement assistance.
“We’re all about giving young people a second start in life,” says Lawrence T. Hampton, chief financial officer for The PAL Center. “We have specialized in working with students who have been the hardest to serve.” Though designed to focus on those students most in-need, Hampton notes an interesting trend that has occurred in recent years.
“We’re becoming more of a school of choice. When we first started, we strictly took those students that were headed toward dropout,” he explains. But in the late 2000s, “we started seeing more incoming freshmen choosing to come to school here instead of being referred… So it’s been fun to watch that transition.”
The reasons The PAL Center has grown from a school of last resort to the first choice for so many are the non-traditional benefits it offers students. The school operates from 7:30 a.m. – 12:30 p.m. four days a week, providing students with the open schedule many of them need to hold jobs or help with their families. In addition, the school is located just outside of the city in a quiet area surrounded by mountains. This picturesque setting helps encourage calm and focus. Finally, class sizes average around 21 students, helping teachers provide more personal attention than students would receive at other area high schools where class sizes are larger.
Despite the school’s successful track record, Hampton has had to manage challenges threatening The PAL Center’s existence, including charter school funding. Deferrals of state payments in California forced the school to tap into its savings, which proved to be insufficient as the deferrals increased. The school also obtained a credit line, but it quickly ran out. School administrators – having made a promise to the students and families of San Bernardino – needed to find a more permanent solution.
The PAL Center’s accountant referred the school to Charter School Capital. Within a few weeks, the two organizations began a long-term relationship that at times has been a lifeline to the school.
“The relationship has allowed us to stay financially solvent, and I can honestly say without that we would’ve been out of the charter school business,” says Hampton. “This school would have folded.”
“They have taken a personal interest in seeing us survive, and that comes through quickly when you’re talking to them. It’s more than just business, and I’m grateful for them.”