Press Release
4/12/2006

Contact:   Charity Sack, 202-682-7335

$42 Million Loan Fund Created for Charter Schools in Low- and Moderate-income Communities 

NCB Development Corporation partners with The General Board of Pension and Health Benefits of The United Methodist Church to finance charter schools in Florida, Georgia, Minnesota and Wisconsin

WASHINGTON, DC— NCB Development Corporation (NCBDC) and The General Board of Pension and Health Benefits of The United Methodist Church (GBOPHB) have signed an agreement that will provide $42 million to fund facilities for charter schools located in low- and moderate-income communities of Florida, Georgia, Minnesota and Wisconsin.

The Enhancement Fund (TEF) will provide access to loans up to $8 million for up to 25 years to finance charter school facilities.  The funds may be used for acquisition, renovation, construction and leasehold improvements. TEF offers charter schools in low-income areas access to loans under terms and conditions not otherwise available to them. Access to 25-year loans at fixed rates of interest will mean budget predictability and insulation from higher interest rates in what continues to be a rising rate environment.   TEF will primarily finance charter schools where the students qualify for free/reduced lunch programs and/or the median income is at or below 80 percent.

Using a grant from the U.S. Department of Education as a loan loss reserve, NCBDC successfully leveraged the proceeds 10 times their worth to create the new loan program.

“The Enhancement Fund will result in greater choice in education for families living in the low-income communities we serve,” said Terry Simonette, President and CEO of NCBDC. “This is more significant than ever since charter schools are emerging as one of the anchors in successful economic development efforts in low-income communities”

“The General Board of Pension and Health Benefits of the United Methodist Church seeks investment opportunities in line with the Church’s social principles to give children access to quality education through the establishment of charter schools,” commented Barbara A. Boigegrain, General Secretary of GBOPHB.  “Our partnership with NCBDC to invest in charter schools in low and moderate income communities is our first partnership of this type.”

Since 1996, NCBDC has loaned over $100 million to charter schools nationwide, supporting nearly 80,000 schools seats in America’s low-income communities.

Charter schools are public schools that receive funding from public sources, but must locate and finance their own buildings. Charter schools are still largely viewed as an “emerging market” by conventional lenders making them wary of providing capital and leaving a gap in access to financing, particularly in low-income communities.  NCBDC is a leader in working with traditional lenders to close that gap.

About NCB Development Corporation (NCBDC)

NCBDC, an affiliate of National Cooperative Bank, is a national nonprofit organization that empowers underserved communities to address the problems poverty creates in America. NCBDC innovates ways to create access to capital and technical assistance otherwise unavailable for low-income communities while maintaining financial strength. NCBDC employs a unique combination of financial and development services to spark systemic change in delivering affordable: charter school facilities; affordable cooperative homeownership; health care facilities; and assisted living housing and services. www.ncbdc.org

About The General Board of Pension and Health Benefits of The United Methodist Church (GBOPHB)

GBOPHB is a not-for-profit administrative agency of The United Methodist Church, responsible for the general supervision and administration of the retirement, health and welfare benefit plans, programs and funds for more than 66,000 clergy and lay employees of the Church.  The General Board manages and invests over $14 billion dollars in assets. As a socially responsible investor, the General Board is actively involved in shareholder advocacy, proxy voting, portfolio screening and community investing.

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