Bill > SB631

This bill modifies the Charter School Revolving Loan Fund to expand and improve financing options for charter schools. The bill increases the maximum loan amount from $250,000 to $500,000 and extends the maximum loan repayment period from 5 to 15 years. It broadens loan eligibility by allowing loans to be made indirectly to chartering authorities for multiple schools, to entities managing charter schools, and directly to charter schools formed as nonprofit corporations. The bill also changes the loan priority system, now giving first priority to charter schools impacted by state emergencies, then to new charter schools for startup costs, and finally to all other charter schools. Additionally, the bill adjusts the loan interest rate calculation, stipulating that it will be either the Pooled Money Investment Account rate or 50% of the state general obligation bond interest rate, whichever is less, but not lower than 3%. Importantly, the bill removes the previous requirement that a charter school would be solely liable for loan repayment in case of default, now including the entity managing the charter school in potential repayment responsibility. These changes aim to provide more flexible and accessible financial support for charter schools in California.

Budget and Finance, Education

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB631