Bill > HB4952

This bill establishes two new programs within the West Virginia Economic Development Authority (WVEDA) to support public charter schools: the Charter School Direct Loan Program and the Charter School Credit Enhancement Program. The Direct Loan Program will provide loans for charter school construction, renovation, startup, and expansion, with loan amounts capped at $2 million per school and terms generally not exceeding five years, though longer terms are possible for New Markets Tax Credit transactions. The Credit Enhancement Program aims to help qualifying charter schools secure better financing by providing a mechanism to replenish their debt service reserve funds, which are funds set aside to cover principal and interest payments on bonds if the school's own funds are insufficient. The WVEDA will set standards for charter schools to qualify for these programs, considering their financial strength and credit ratings, and will administer special revenue funds for each program. Importantly, obligations issued under these programs will not create a debt for the state or its political subdivisions, and will be repaid from loan payments, lease revenues, or other pledged funds from the charter schools. The bill also outlines procedures for replenishing debt service reserve funds if they fall below required levels, with the expectation that charter schools will repay the state for any such appropriations.