State Treasurer's Office Grants

State Treasurer's Office

In 2004, 2009, and 2014, the United States Department of Education approved grant awards to the Authority pursuant to the State Charter School Incentive Grant Program (Program), authorized under Title V, Part B, Subpart 1 of the Elementary and Secondary Education Act, as amended by the No Child Left Behind Act of 2001. The California School Finance Authority was recently awarded a $30 million grant award in Fall 2024. Per the Authority’s application to the Department of Education, the Authority is proposing three more funding rounds of the Program starting for the 2025-26 school year.   

State Treasurer's Office

CPCFA acts as a conduit issuer in the transaction. The bonds are issued to raise capital for revenue-generating projects where the funds are used by the borrower to make payments to investors. The conduit financing is typically backed by either the borrower's credit or monies pledged to the project by outside investors. If the project fails and goes into default, it is solely the borrower's responsibility to repay the bondholders. Eligible Facilities The following types of projects are eligible for financing: Provides financing to California business, irrespective of company size, for the acquisition, construction or installation or qualified pollution control, waste disposal, and resource recovery facilities  Provides financing to California businesses that meet the size standards set forth in Title 13 of the Code of Federal Regulations or are an eligible small business, which is defined as 500 employees or less, including affiliates, for the acquisition, construction or installation of qualified pollution control, waste disposal, and resource recovery facilities. Final determination of eligibility is based upon opinion of Bond Counsel and Tax Counsel pursuant to Federal Tax Laws. Types of projects, which may qualify for tax-exempt bond financing, include: Curbside collection facilities, Recycling facilities, Composting facilities, Materials recovery facilities, Transfer station Landfills, Waste-to-energy facilities, Qualified solid waste or hazardous waste disposal projects Waste recovery facilities, Water Furnishing Facilities, Wastewater Treatment Facilities. Potential Uses of Bond Proceeds: Buildings and equipment Machinery and furnishings Land Costs of architects, engineers, attorneys and permits Costs of bond issuance Federal Eligibility Requirements Restrictions on use of proceeds: 95% of proceeds must be used for the defined project 2% of bond proceeds can be used for costs of issuance 25% of bond proceeds can be used for land costs in certain cases A public Tax Equity and Fiscal Responsibility Act (TEFRA) hearing must be held before the bonds are issued To acquire an existing building, a minimum of 15% of the bond proceeds must be used to renovate the building The average life of the bond issue cannot exceed 120% of the weighted average of the estimated useful life of the assets being financed. Prospective borrowers should contact bond counsel to help determine if a proposed project qualifies under federal law. Financing is performed in conjunction with allocation from the California Debt Limit Allocation Committee (CDLAC). The allocation is required by federal tax law for private activity tax-exempt bonds to be issued. CPCFA Fees: Application Fee: .0005 (1/20 of 1%) of total application amount, not to exceed $5,000. Payable with initial application.  Administrative Fees: .002 (2/10 of 1%) of total amount of bonds issued utilizing volume cap allocation, minus the application fee. Please see the CPCFA Bond Program website for additional fees which may apply to the financing.  

State Treasurer's Office

The Project Acceleration Notes and Credit Enhancement Alternatives (PANACEA) Program supports short-term interim financing to charter schools that have received a reservation of funds through the Charter School Facilities Program or are awaiting the issuance of long-term debt through the Authority’s Conduit Bond and Note Financing Program.

State Treasurer's Office

The Charter School Facility Grant Program provides annual grants to offset annual on-going facility costs for charter schools that service a high-percentage of students eligible for free or reduced-price meals or located in a public elementary school boundary serving a similar demographic. This program, previously administered by the California Department of Education, was transferred to the California School Finance Authority (CSFA) in 2013-14. Availability of funding is announced on the CSFA website each year.

State Treasurer's Office

The Charter School Revolving Loan Fund (CSRFL) Program provides low-cost loans of up to $250,000 to charter schools, with priority given to schools opening in the current fiscal year. The Authority conducts extensive credit evaluations, makes funding recommendations, executes loan agreements, creates payment schedules, disburses funds, offsets loan payments, collects delinquent or defaulted loans, and develops program fund reconciliations and projections. The Authority sends out a Listserve to announce the opening and closing of the application period.

State Treasurer's Office

The Project Acceleration Notes and Credit Enhancement Alternatives (PANACEA) Program supports short-term interim financing to charter schools that have received a reservation of funds through the Charter School Facilities Program or are awaiting the issuance of long-term debt through the Authority’s Conduit Bond and Note Financing Program.

State Treasurer's Office

The Charter School Facility Grant Program provides annual grants to offset annual on-going facility costs for charter schools that service a high-percentage of students eligible for free or reduced-price meals or located in a public elementary school boundary serving a similar demographic. This program, previously administered by the California Department of Education, was transferred to the California School Finance Authority (CSFA) in 2013-14. Availability of funding is announced on the CSFA website each year.

State Treasurer's Office

The Charter School Revolving Loan Fund (CSRFL) Program provides low-cost loans of up to $250,000 to charter schools, with priority given to schools opening in the current fiscal year. The Authority conducts extensive credit evaluations, makes funding recommendations, executes loan agreements, creates payment schedules, disburses funds, offsets loan payments, collects delinquent or defaulted loans, and develops program fund reconciliations and projections. The Authority sends out a Listserve to announce the opening and closing of the application period.

State Treasurer's Office

The federally-funded Charter School Facilities Credit Enhancement Grant Program was created from a $20 million grant awarded in 2023  through the federal “Expanding Opportunity through Quality Charter Schools Program- Credit Enhancement (CE) Program” (ALN#84.354A) grant competition in 2023.  This program provides grants to fully or partially fund debt service reserve accounts on bond transactions issued through the Authority. The grant is intended to reduce the overall cost of borrowing for charter schools as it eliminates the need to fund the reserve through bond proceeds.

State Treasurer's Office

The federally-funded Charter Finance Enhancement (Charter FinE) Program was created from an $10 million grant awarded through the federal “Expanding Quality Charter Schools Program – Grants for Credit Enhancement for Charter School Facilities” (CFDA #84.354A) grant competition in 2023. This program enhances financings to charter schools to lower costs associated for permanent charter school facilities.

State Treasurer's Office

Eligibility General Requirements -Must be a health facility as defined in the Authority's Act (Section 15432(d) of the California Government Code) -Must be a non-profit 501(c)(3) corporation or public health facility (e.g., district hospital) as defined in the Authority's Act (Section 15432(e) of the California Government Code) -Must have been in existence for at least three years, providing the same types of services -Must demonstrate evidence of fiscal soundness and the ability to meet the terms of the proposed loan Use of Funds Funds may be used for: -Construction, remodeling, renovation, and/or improvements -Land acquisition -Acquisition of existing health facilities  -Equipment and/or furnishings -Refunding of prior debt -Working capital for start-up facilities -Costs of bond issuances, feasibility studies & reimbursement of prior expenditures  Loan Terms -Any commercial paper issued by Authority must receive short-term rating of at least A-1/P-1/F-1 by at least one nationally recognized rating agency -Must be issued in denominations of $100,000 -Final maturity date cannot exceed 40 years -Commercial paper application must include a detailed description of capital projects to be funded by proceeds Fees -No application fee -Initial fee of 0.05% of the issue amount (maximum $100,000) -Annual administrative fee; greater of $5,000 or 0.0175% of the maximum amount of notes outstanding during the billing year Required Documentation -Three most recent fiscal years of audited financial statements      

State Treasurer's Office

On November 4, 2008, California voters passed Proposition 3, the Children's Hospital Bond Act of 2008. The purpose of the program is to improve the health and welfare of California's critically ill children, by providing a stable and ready source of funds for capital improvement projects for eligible hospitals. The California Health Facilities Financing Authority (CHFFA) is responsible for administering the program. Language in Proposition 3 identifies 13 children's hospitals in California  (referred to as "Children's Hospitals") as eligible for $980 million in funding. The 13 Children's Hospitals designated by statute consist of eight private nonprofit Children's Hospitals and five University of California Children's Hospitals. Grant awards for each private nonprofit Children's Hospital was limited to $98 million, less costs of issuance and administrative costs. Grant awards for each University of California Children's Hospital was limited to 39.2 million, less costs of issuance and administrative costs. Costs of issuance are $0.75 per $1,000 of the authorized grant award, and administrative costs are $5.00 per $1,000 of the authorized grant award. Applications are accepted on an ongoing basis and are due the first business day of each month, except October and November, and will be presented to the Authority the following month. For the month of October, applications are due October 7. Applications received on October 7 will be presented for Authority consideration at a regularly scheduled meeting in December or January. Applications are not accepted in November. Applications shall be submitted in duplicate to the Authority. Currently, each University of California Children's Hospital may apply more than once for the available grant funds. Submit completed Application by mail or in-person to: California Health Facilities Financing Authority Children's Hospital Program 901 P Street Room #313 Sacramento, CA 95814 

State Treasurer's Office

On November 6, 2018, California voters passed Proposition 4, the Children's Hospital Bond Act of 2018. The purpose of the program is to improve the health and welfare of California’s critically ill children, by providing a stable and ready source of funds for capital improvement projects for eligible hospitals. The California Health Facilities Financing Authority (CHFFA) is responsible for administering the program. Language in Proposition 4 identifies 13 children’s hospitals in California (referred to as “Children’s Hospitals”) as eligible for $1.35 billion in funding. The 13 Children's Hospitals designated by statute are the same as the 13 hospitals that received grants under the first two Children’s Hospital Programs also administered by CHFFA and enacted by Proposition 61 in 2004 and Proposition 3 in 2008. The 13 Children’s Hospitals consist of eight private nonprofit Children’s Hospitals and five University of California Children’s Hospitals. Grant awards for each private nonprofit Children’s Hospital was limited to $135 million, less costs of issuance and administrative costs. Grant awards for each University of California Children’s Hospital was limited to $54 million, less costs of issuance and administrative costs. Costs of issuance are $0.75 per $1,000 of the authorized grant award and administrative costs are $10.00 per $1,000 of the authorized grant award. Applications are accepted on an ongoing basis until June 30, 2033 and are due the first business day of each month, except October and November, and will be presented to the Authority the following month. For the month of October, Applications are due on October 7. Applications received on October 7 will be presented for Authority consideration at a regularly scheduled meeting in December or January. Applications are not accepted in November. Applications shall be submitted in duplicate to the Authority. Each Children’s Hospital may apply more than once. Submit completed Application by mail or in-person to: California Health Facilities Financing Authority Children’s Hospital Program 901 P Street Room 313 Sacramento, CA 95814

State Treasurer's Office

The federally-funded Charter Access to Bank Loan Enhancement (Charter ABLE) Program was created from an $20 million grant awarded through the federal “Expanding Quality Charter Schools Program – Grants for Credit Enhancement for Charter School Facilities” (CFDA #84.354A) grant competition in 2019. This program enhances financing to charter schools to lower costs associated with financings for permanent charter school facilities.

State Treasurer's Office

Eligibility General Requirements -Must be a health facility as defined in the Authority's Act (Section 15432(d) of the California Government Code) -Must be a non-profit 501(c)(3) corporation or  public health facility (e.g., district hospital) as defined in the Authority's Act (Section 15432(e) of the California Government Code) -Must have been in existence for at least three years, providing the same types of services -Must demonstrate evidence of fiscal soundness and the ability to meet the terms of the proposed loan Use of Funds Funds may be used for: -Construction, remodeling, renovation, and/or improvements -Land acquisition -Acquisition of existing health facilities -Equipment and/or furnishings -Refunding of prior debt -Working capital for start-up facilities -Costs of bond issuances, feasibility studies & reimbursement of prior expenditures Loan Terms -Market determined fixed or variable rate interest rate, depending on maturity -No loan maximum -Maximum loan maturity typically 40 years -Loan security provisions and bond covenants that correspond with bond rating Fees -No application fee -Initial fee of 0.05% of the issue amount (maximum $100,000), set fee of $1,000 for smaller health systems and public health facilities -Annual administrative fee of 0.0175% of the bonds outstanding (maximum $150,000), maximum of $500 for small health systems and public health facilities Required Documentation -Three most recent fiscal years of audited financial statements    

State Treasurer's Office

Eligibility General Requirements -Be regionally accredited by the Western Association of Schools and Colleges; -Be a private, non-profit, post-secondary degree granting educational institution that does not factor race or ethnicity into their admissions process, and is located in California or that has educational facilities in California that are regionally accredited; -Offer a broad curriculum in secular subjects, and the information and coursework used to teach secular subjects must be neutral with respect to religion; -Have been operating for a minimum of three years prior to submitting an application for financing and provide three years of audited financial statements; -Have revenue or collateral sufficient to cover debt service on the proposed financing. Use of Funds Funds may be used for: -Construction -Remodeling and renovation -Land acquisition -Purchase of or lease of equipment -Refinancing or refunding of prior debt -Costs of bond issuances and reimbursement of prior expenses Loan Terms -Market determined fixed or variable rate interest rate, depending on maturity -No loan maximum -Maximum loan maturity typically 40 years -Loan security provisions and bond covenants that correspond with bond rating Fees -$1,000 non-refundable application fee -Initial fee of 0.15% of the par amount up to $10 million, plus 0.05% of the par amount in excess of $10 million (up to a maximum fee of $75,000) -Annual administrative fee of 0.015% of the par amount outstanding (up to a maximum of $12,000) Required Documentation -Three most recent fiscal years of audited financial statements    

State Treasurer's Office

Eligibility -Must be a health facility as defined in the Authority's Act (Section 15432(d) of the California Government Code) -Must be a non-profit 501(c)(3) corporation and qualify as a small or rural health facility or public health facility (e.g., district hospital) as defined in the Authority's Act (Section 15432(e) of the California Government Code)  -Small facilities must have annual gross revenues of $30 million or less (no revenue limit for rural facilities or district hospitals) -Must be licensed by the State of California, typically through the Department of Health Care Services, Public Health, or Social Services -Must have been in existence for at least three years, providing the same types of services -Must demonstrate evidence of discal soundness and the ability to meet the terms of the proposed loan -Facility must be certified, organized, maintained and operated for the diagnosis, care, prevention, and treatment of human illness, or physical, mental, or developmental disability, including convalescence and rehabilitation and including during care during and after pregnancy Use of Funds Funds may be used for: -Purchase, construction, renovation, or remodeling of real property -Purchase equipment and furnishings -Perform feasibility studies, site tests, and surveys associated with real property -Pay permit fees, architectural fees, and pre-construction costs -Refinancing existing debt Loan Terms -Minimum loan amount of $25,000 -Maximum loan amount of $1.5 million ($1 million for refinancing existing debt) -Interest rate of 3% (4% for refinancing existing debt) -Maximum loan maturity depends on use of funds.  Between 5 years for equipment and furnishings and 20 years for the purchase, construction and renovation of real property (15 years for refinancing existing debt) -Gross revenue pledge, as well as a lien on the equipment or property, is required -Maximum loan-to-value ratio of 95% -Borrowers must contribute a minimum of 5% (in the form of cash or documented project expenditures) toward project costs -Proforma debt service coverage of at least 1.0x Fees -$50 non-refundable application fee -Initial fee of 1.25% of the loan amount payable at closing -No ongoing program fees Required Documentation -Three most recent fiscal years of audited financial statements -Proof of adequate property and business insurance  

State Treasurer's Office

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion (STE) Program (the “Program”) excludes from sales and use taxes purchases of Qualified Property if its use is either to process Recycled feedstock or using Recycled feedstock in the production of another product or soil amendment; or that is used in an Advanced Manufacturing process; or that is used to manufacture Alternative Source products or Advanced Transportation Technologies. Eligible manufacturers planning to construct a new manufacturing facility or expand or upgrade a currently existing manufacturing facility may apply to CAEATFA for an STE award, and if approved, the purchases of Qualified Property for the project are not subject to state and local sales and use tax.Please refer to https://www.treasurer.ca.gov/caeatfa/ste/regulations/index.asp and https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#program for more information.

State Treasurer's Office

Designed to fund debt service reserves for the financing of acquisition, renovation, or construction of charter school facilities, or the refinancing of existing charter school facility debt.

State Treasurer's Office

Through the passage of Propositions 47, 55, 1D, and most recently, 51, $1.4 billion has been made available to charter schools for construction of new facilities or rehabilitation of existing school district facilities. CSFP provides low-cost financing for charter school facilities; 50% grant, 50% loan. This money is used to finance the construction of new, permanent school facilities or rehabilitation of existing school district facilities for charter schools throughout the state. CSFP is jointly administered by the California School Finance Authority (CSFA) and the Office of Public School Construction (OPSC). CSFA directs the financial soundness review process for the CSFP and provides certification of financial soundness for purposes of Preliminary, Advance, and Final Apportionments.

State Treasurer's Office

CPCFA acts as a conduit issuer in the transaction. The bonds are issued to raise capital for revenue-generating projects where the funds are used by the borrower to make payments to investors. The conduit financing is typically backed by either the borrower's credit or monies pledged to the project by outside investors. If the project fails and goes into default, it is solely the borrower's responsibility to repay the bondholders. Eligible Facilities The following types of projects are eligible for financing: Provides financing to California business, irrespective of company size, for the acquisition, construction or installation or qualified pollution control, waste disposal, and resource recovery facilities  Provides financing to California businesses that meet the size standards set forth in Title 13 of the Code of Federal Regulations or are an eligible small business, which is defined as 500 employees or less, including affiliates, for the acquisition, construction or installation of qualified pollution control, waste disposal, and resource recovery facilities. Final determination of eligibility is based upon opinion of Bond Counsel and Tax Counsel pursuant to Federal Tax Laws. Types of projects, which may qualify for tax-exempt bond financing, include: Curbside collection facilities, Recycling facilities, Composting facilities, Materials recovery facilities, Transfer station Landfills, Waste-to-energy facilities, Qualified solid waste or hazardous waste disposal projects Waste recovery facilities, Water Furnishing Facilities, Wastewater Treatment Facilities. Potential Uses of Bond Proceeds: Buildings and equipment Machinery and furnishings Land Costs of architects, engineers, attorneys and permits Costs of bond issuance Federal Eligibility Requirements Restrictions on use of proceeds: 95% of proceeds must be used for the defined project 2% of bond proceeds can be used for costs of issuance 25% of bond proceeds can be used for land costs in certain cases A public Tax Equity and Fiscal Responsibility Act (TEFRA) hearing must be held before the bonds are issued To acquire an existing building, a minimum of 15% of the bond proceeds must be used to renovate the building The average life of the bond issue cannot exceed 120% of the weighted average of the estimated useful life of the assets being financed. Prospective borrowers should contact bond counsel to help determine if a proposed project qualifies under federal law. Financing is performed in conjunction with allocation from the California Debt Limit Allocation Committee (CDLAC). The allocation is required by federal tax law for private activity tax-exempt bonds to be issued. CPCFA Fees: Application Fee: .0005 (1/20 of 1%) of total application amount, not to exceed $5,000. Payable with initial application.  Administrative Fees: .002 (2/10 of 1%) of total amount of bonds issued utilizing volume cap allocation, minus the application fee. Please see the CPCFA Bond Program website for additional fees which may apply to the financing.  

State Treasurer's Office

Eligibility General Requirements -Must be a health facility as defined in the Authority's Act (Section 15432(d) of the California Government Code) -Must be a non-profit 501(c)(3) corporation or public health facility (e.g., district hospital) as defined in the Authority's act (Section 15432(e) of the California Government Code) -Must have been in existence for at least three years, providing the same types of services -Must demonstrate evidence of fiscal soundness and the ability to meet the terms of the proposed loan Use of Funds Funds may be used for: -The purchase or reimbursement of all types of qualifying equipment by an eligible health facility -The financing of minor equipment installation costs Loan Terms -Market determined fixed interest rate, depending on maturity -The maturity of the loan must relate to the useful life of the equipment to be financed -Loan minimum of $500,000, no maximum loan amount Fees -$500 non-refundable application fee -Initial fee of 0.05% of the issue amount -Annual administrative fee of $400, as long as there is an outstanding loan balance Required Documentation -Three most recent fiscal years of audited financial statements

State Treasurer's Office

In 2004, 2009, and 2014, the United States Department of Education approved grant awards to the Authority pursuant to the State Charter School Incentive Grant Program (Program), authorized under Title V, Part B, Subpart 1 of the Elementary and Secondary Education Act, as amended by the No Child Left Behind Act of 2001. The California School Finance Authority was recently awarded a $30 million grant award in Fall 2024. Per the Authority’s application to the Department of Education, the Authority is proposing three more funding rounds of the Program starting for the 2025-26 school year.