In March 2019, KIPP Bay Area Public Schools (KBAPS) closed a $16 million loan with the newly formed Charter Impact Fund (CIF). The loan was made to KBAPS’ real estate support corporation, KBARE, for the refinance of loans and reimbursement of equity associated with the construction of two projects for existing KBAPS schools: KIPP Bridge Academy in Oakland (TK-8) and KIPP Heritage Academy in San Jose (5-8), which lease the facilities from KBARE. CIF is a venture funded initially with a grant from the Walton Family Foundation which makes long-term, fixed rate and fully amortizing loans to charter schools across the nation at subsidized costs and interest rates. For KBAPS, their interest rate was 4.25% for 30 years.
The two KBAPS schools serve populations that are at least 90% students of color, 70% FRL and 20% English language learners. Both schools outperformed their local peers on the SBAC. As a network, KBAPS operates 12 schools serving over 5,200 students across eight different school districts. For 2017-18, almost 60% of the network’s students Met or Exceeded standards on SBAC English Language Arts and just under 50% Met or Exceeded SBAC Math, compared to 24% and 17%, respectively, for Economically Disadvantaged students at their authorizing districts.
A Master Trust Indenture was created to secure this first obligation for KBAPS, which can be used for future financings of KBAPS schools. Akin Gump served as borrower’s counsel to KBAPS and Buck Financial served as Financial Advisor. Congratulations to KBAPS and the students and families at Bridge and Heritage academies.