THE WOODLANDS, Texas, Feb. 15, 2023 /PRNewswire/

RDF recently collaborated with Woodforest National Bank® (Woodforest) to develop a lending program focused on bridge financing of new or expanded facilities for existing charter school operators within Woodforest's 17 state footprint.

The first charter school operator to participate in the new joint bridge financing loan program between RDF and Woodforest National Bank is Kenilworth Science and Technology School in Baton Rouge, LA "This collaboration presents a tremendous opportunity for RDF to support more charter schools dedicated to providing a high-quality education. As a mission-based lender, RDF is committed to seeking ways in which more dollars can be reinvested into the classroom and support programming, while ensuring families have access to dignified facilities," said Adrian Ruiz, Chief Investment Officer, Raza Development Fund.

Paul Ettorre, Vice President, Community Banking Relationship Manager, Woodforest National Bank, added, "Large charter school operators can usually access construction financing from the bond market. But the partnership identified a significant market gap for smaller proven operators with growth strategies that cannot immediately access bond financing, which is much needed to provide quality educational facilities for students, many in low-income communities." Here is how it works. RDF originates and services the loan providing a level of critical credit enhancement which enables Woodforest to participate in a large share of the financing needed. This includes a loan for up to five years of construction and mini-perm financing until the charter school operator can reach full growth enrollment and obtain permanent financing. This collaboration also enables RDF to leverage their capital resources for potentially even greater community impact.

The first charter school operator to participate in the new joint loan program is Kenilworth Science and Technology School in Baton Rouge, LA. Kenilworth is a well-established charter school operator currently serving a primarily minority student population for grades 6 – 8, where 92% of students receive no-cost or reduced cost lunches at school. Kenilworth is expanding their community reach and building on their proven educational model to serving students in grades K – 8, and in partnership with Building Hope Real Estate in Washington DC, are building a new school facility to accommodate the significant growth via an $18 million construction loan. "Since earning a Bachelor of Science degree in Computer Science, I have dreamt about creating a computer science-focused school," said Hasan Suzuk, Executive Director, Kenilworth Science and Technology School. "And since being here, I have dreamt about making Kenilworth a K8 school since it is a better model to serve our families. This project will make both dreams come true."