Charter School Revolving Loan Fund.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill increases the amount charter schools can borrow from the Charter School Revolving Loan Fund, allowing them to receive up to $500,000 in loans over the school’s lifetime, an increase from the previous limit of $250,000. It also adjusts the repayment terms and clarifies criteria for loan priority, including prioritizing new schools and those damaged by disasters. The bill establishes a security fund to cover loan defaults and requires regular reporting on the fund’s status to the legislature and finance department.
Key provisions
- Increases the maximum loan amount from $250,000 to $500,000.
- Adjusts the maximum lifetime loan limit to $500,000.
- Revises the loan repayment period, with potential for longer terms for schools impacted by disasters.
- Eliminates sole liability for loan repayment in the event of a default.
- Modifies criteria for prioritizing loans, including new schools and disaster-affected schools.
- Sets the interest rate for loans at either the Pooled Money Investment Account rate or 50% of the state’s bond interest rate, whichever is lower, with a minimum rate of 3%.
- Creates a Charter School Security Fund to cover loan defaults.
- Requires annual reports to the legislature and finance department, including an analysis of loan fund expenditures since July 1, 2026.
Who is affected
- Charter Schools
- California School Finance Authority
Bill text
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Sponsors
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1 on record
Primary sponsor
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