SBA 504 Charter School Feasibility Study in Texas

Texas charter and private school lending in SBA's records

In Texas, SBA 504 approved 44 loans in the charter and private school class. Across FY2017 to FY2026 in Texas that came to $78.0 million gross. Counting charter and private school loans, Texas ranks 2 across states for charter and private school under this program, and charter and private school sits 11 of 39 among Texas classes. A median of $1.7 million is 1.42x of the national charter and private school median under SBA 504, so Texas runs above the norm. For charter and private school in Texas, the middle half spans $1.1 million to $2.4 million, and franchise flags mark 50.0% of Texas charter and private school loans.

Who holds the charter and private school loans, and where

Listed Texas charter and private school holders: Capital Certified Development Corporation with 23 loans and $44.7 million; LiftFund, Inc. with 7 loans and $9.9 million; Greater East Texas Certified Development Company with 6 loans and $11.9 million. Holders in Texas are those SBA currently lists. The Texas charter and private school county count starts with Williamson at 8, Denton at 6, Bexar at 5, Harris at 5, Collin at 4.

Timing of Texas approvals

The Texas charter and private school calendar shows 3 loans ($5.1 million) in FY2019, then in Texas 3 in FY2020 ($5.8 million), and in Texas 4 in FY2021 ($2.2 million), 9 in FY2023 ($19.6 million) and 12 in FY2024 ($24.0 million) against Texas's peak of 12 in FY2024. FY2017 show no Texas charter and private school approvals.

Charter and private school cancel and charge-off floors

In Texas, approval did not always mean a charter and private school loan: of FY2017 to FY2024 Texas approvals, at least 7.5% ended in Texas cancellation, with 25.0% the ceiling if undisbursed charter and private school loans are added. The charter and private school cohort funded in Texas is too small, so Texas holds no stable charge-off rate for charter and private school loans in Texas funded FY2017 to FY2021; Texas withholds the rate, and Texas lenders should not read it as zero.

Texas schools under SBA 504

A school facility loan turns on enrolment and funding. A Texas study should project students from the catchment, test seat demand against rival public and private options, and show how per-student revenue and any facility support cover operating cost before the debt payment. Building cost, whether new or converted, belongs beside the $1.7 million median, with coverage tested at lower enrolment than planned. Appraisers value schools as special-purpose property, so the alternative use of the building matters to a lender.

Texas schools: who is in the figures

Charters share a code with private schools, and because SBA does not finance nonprofits, which most charters are, a Texas charter operator should read these totals as mostly for-profit and private schools.