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The Reinvestment Fund

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The Reinvestment Fund

First Philadelphia Charter School for Literacy, Philadelphia, PA

[Pullout: Young boys reading ]
Young boys reading

Conventional lenders have often regarded charter schools as an “emerging market,” so it was no surprise that First Philadelphia Charter School for Literacy faced an uphill battle when it needed financing. What was not surprising, however, was that The Reinvestment Fund (TRF) came to the rescue—not once but twice.
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A national leader in the financing of neighborhood revitalization, TRF has provided loans to charter schools since 1997. As of October 2007, the Philadelphia organization has provided $120 million in financing to 42 charter schools. Enrollment at TRF-financed charter schools tops 21,000.

When First Philadelphia received its charter approval in the summer of 2002 and had just six weeks to prepare for the new school year, TRF provided a short-term loan that enabled the school to cover its start-up costs and to lease temporary facilities at three separate locations in the neighborhood. In 2004, additional TRF financing—including a $4.76 million construction and long-term permanent loan and a $640,000 energy loan—enabled First Philadelphia to purchase an industrial warehouse and convert it into a state-of-the-art facility to house all its operations.

Today, First Philadelphia is a thriving school serving 750 students—90 percent of them from low-income families—as well as a community center for seniors and families. Its 67,000-square-foot facility includes 30 classrooms, a stage, three music practice rooms, a regulation gymnasium, and a literacy center with a bank of 25 computers. “Our ability to provide these educational opportunities for the children of Philadelphia is, in large part, the result of the leap of faith that The Reinvestment Fund took on our dream,” says First Philadelphia founder and board chair Gerald Santilli.