View frequently asked questions (FAQ) for Equitable School Revolving Fund.

General Questions

Who is the Program Administrator - Equitable Facilities Fund, Inc. (EFF)?

Equitable Facilities Fund, Inc., (EFF) a nonprofit corporation, was established in 2017 to operate a pooled revolving loan program for high-performing charter schools. EFF originates loans to qualifying public schools across the country for the purpose of financing and refinancing the costs of the acquisition, construction, improvement, equipping and furnishing of public charter school facilities.

What is Equitable School Revolving Fund, LLC (ESRF)?

To facilitate the issuing of bonds, the Program Administrator created Equitable School Revolving Fund, LLC, a Delaware limited liability company, and is its sole member. The Revolving Fund functions as a bankruptcy remote, special-purpose, financing entity, designed to own and hold the school loans as security for the bonds that will be issued and to make required payments to bondholders on outstanding obligations. The Revolving Fund received a $200 million grant and combines this philanthropic donation with economies of scale, transparency liquidity, and substantial overcollateralization levels to create an “A” rated credit structure, raise bond capital, and finance credit-worthy charter schools.

What is the purpose of the ESRF Program?

ESRF’s purpose is to work with the bond market to decrease school facility financing costs for quality public charter schools, allowing these schools to spend more time and resources helping their students continue to achieve academic success.

Why has ESRF engaged the Program Administrator?

ESRF engages the Program Administrator to provide staffing, administrative support, office space, credit underwriting for school loans, and bond financing program administration.

Who composes the Program Administrator’s Staff & Leadership?

The Program Administrator employs nine full-time professionals in various lending and operational capacities. The Program Administrator staff has specific charter school analytical experience, including approximately 300 transactions as a major charter school bond investor; $700 million invested as a buy-side analyst; extensive, acclaimed research for the charter school bond sector; as well as senior finance, operations and legal leadership at high-performing charter schools and advocacy organizations.

What is the Capitalization Grant?

In 2018 and 2019, ESRF received an initial $200 million Capitalization Grant as a charitable gift for the purpose of purchasing school loans from the Program Administrator and related activities. The Capitalization Grant is not a loan and therefore can remain with ESRF in perpetuity.

What are the sources of security for the bond obligation?

As security for its obligation under the Master Trust Indenture, ESRF has pledged all school loan repayments, associated first lien real estate collateral, and the Debt Service Reserve Fund.