Charter School Feasibility Study in the New York-Newark-Jersey City, NY-NJ Metro Area

A modest school record in a large metro

The area ranks 3 of 154 metro and micro areas for school loans, yet schools are 21 of 39 by class rank here, and a quotient of 0.71x puts them below its national share. The record holds 42 approvals worth $41.6 million across FY2017 through FY2026.

Why the class is narrow

Charter and private schools share one industry code and cannot be told apart, and because SBA does not lend to nonprofits, which most charter schools are, the eligible ones are a small group. The loans in this record are therefore a mix: private schools together with the few charter operators that are eligible for-profit businesses. A charter operator should not read this record as typical of charter financing.

Ticket sizes

A midpoint of $487,200 is 0.71x the national midpoint, the same ratio as the location quotient, and typical loans stretch from $172,500 to $1.2 million. Program by program, 36 loans sit in 7(a) while 504 holds 6. Franchise share is 16.7%, and the file does not say which school concepts are franchised.

Holders and counties

TD Bank, National Association is listed on 7 loans worth $3.9 million, Hanover Community Bank on 5 worth $3.3 million, and under 504 Empire State Certified Development Corporation on 6 worth $2.9 million. Looking at counties, New York County holds 8 loans and Suffolk County 7, so the record is spread out and does not concentrate in any one place. Holder entries show who SBA lists now.

The printed years

FY2018 shows 7 loans and $5.3 million, FY2019 5 and $10.0 million, FY2021 5 and $3.4 million, FY2025 7 and $3.2 million, and FY2026 6 and $11.4 million. The remaining years are blank under Loan Analytics' small-count rule. It also prints no cancellation rate, since the cohort holds under 30 loans, and withholds the charge-off rate; both gaps are different from zero.

Testing a school project

A study should begin with the school's legal form and its eligibility, then enrollment: the families within reach, tuition or per-pupil funding, and the pace at which seats fill. It should test the building: lease or purchase, code and safety requirements, and renovation cost against a loan near the midpoint. Staffing, accreditation or chartering timelines, and the likelihood that a charter is renewed belong in the analysis. Revenue depends heavily on enrollment, so payment coverage should be shown at lower enrollment. The appraisal must address a special-use building.