New line of credit partnership allows NC charter schools to access part of $52.9 million federal grant
The North Carolina Association for Public Charter Schools (NCAPCS) has entered into a new partnership with Building Hope, a national nonprofit, that opens a line of credit for North Carolina charter schools. The partnership will allow schools to access funds from the $52.9 million federal Charter Schools Program (CSP) grant NCAPCS was awarded last year, according to a June press release. The grant is a part of the U.S. Department of Education’s recent efforts to support school choice under the second Trump administration.
The CSP grant was the largest federal charter grant ever awarded in North Carolina and the first going to an entity outside the N.C. Department of Public Instruction. It funds the NC Growing Results-Oriented Wins with Charter Schools Program, or NC GROW CSP, until 2030. This program aims to expand “access to career and technical education, STEM, and artificial intelligence programs in charter schools.”
The grant is reimbursement-based, meaning it requires schools to front the cost of allowable expenses before being repaid later. Many charter schools “operate without significant cash reserves,” according to the press release, making the structure of the CSP grant a significant barrier to them accessing these funds. NCAPCS highlighted how the line of credit partnership with Building Hope, which was announced in June, helps charter schools feel the true impact of the CSP grant.
“This grant represents a once-in-a-generation opportunity for North Carolina’s charter schools,” said NCAPCS Executive Director Rhonda Dillingham. “But opportunity alone isn’t enough if schools can’t access the funding. Our partnership with Building Hope removes that barrier and ensures that new schools — the schools that need this support most — can fully participate from day one.”
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Through NC GROW, NCAPCS endeavors to:
Support the expansion of public charter schools, prioritizing innovative Career and Technical Education (CTE), STEM, or AI charter models.
Deliver targeted technical assistance to help subgrantees strengthen their financial management.
Provide comprehensive charter school board governance training in North Carolina.
NCAPCS will award funds between $500,000 and $2 million to 42 N.C. public charter schools subgrantees over the next five years as a part of NC GROW. According to the press release, 28 of the recipients will be new schools, which NCAPCS described as the schools “most in need of financial support to access the funding.”
“This line of credit ensures North Carolina’s new charter schools can access critical funding and deliver on the tremendous opportunities the state is creating for its students,” said Robin Odland, president of Building Hope Finance.
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The first recipients
NCAPCS announced the first two subgrantees of the CSP funds on July 6:
- Celeste Beauty Academy in Mecklenburg County
- Carolina Achieve Charter School in Mebane
“Today marks an exciting milestone for North Carolina’s charter school movement as we celebrate the first recipients of NC GROW CSP funding,” Dillingham said in the July press release. “These schools represent the innovative spirit that defines public charter schools by creating new opportunities for students through career-focused, STEM, and entrepreneurial learning. We are proud to invest in schools that will expand access to high-quality educational options and prepare North Carolina’s students for success in college, careers, and life.”
Celeste Beauty Academy will receive $2 million to establish a new public charter high school that “integrates rigorous academics with Career and Technical Education (CTE), cosmetology licensure preparation, entrepreneurship, workforce development, and technology.” The academy is scheduled to open in August 2027.
Carolina Achieve Charter school will receive $500,000 to “strengthen student recruitment and enrollment.”
“New charter schools are often the most innovative — and the most under-resourced,” Odland said when the partnership was first announced in June. “Through our work with charter school communities in states such as Florida, Texas, and Idaho, we’ve seen firsthand how access to flexible capital can help promising schools overcome early funding challenges and accelerate their impact.”