§ 38–1833.02. Direct Loan Fund for Charter School Improvement.
(a) There is established within the District of Columbia a Direct Loan Fund for Charter School Improvement.
(b) The Direct Loan Fund for Charter School Improvement shall be administered by the Office of Charter School Financing and Support, except that no loan may be made under this section without the approval of the committee described in section 603(e)(3)(C)(iii) of the Student Loan Marketing Association Reorganization Act of 1996 (20 U.S.C. 1155(e)(3)(C)(iii)).
(c) Funds distributed under this section shall be for construction, purchase, renovation, and maintenance of charter school facilities.
(d) Loans distributed under this section shall not exceed $2,000,000 per charter school campus.
(e) The Office of Charter School Financing and Support shall determine what interest rates and terms apply to loans granted under this section. In determining the rates and terms of a loan granted to a charter school, the Office of Charter School Financing and Support should do its best to provide low interest options and flexible terms.
(f) To be eligible for a loan under this subsection, an applicant shall be one of the following:
(A) A public charter school with a charter in effect pursuant to Chapter 18 of this title [§ 38-1800.01 et seq.], which meets or exceeds its performance goals as outlined in its originating charter;
(B) A limited liability company that participates in a New Markets Tax Credit program transaction structure with public charter schools; or
(C) A nonprofit corporation that develops and finances a facility that will be occupied by a public charter school throughout the term of the loan; provided, that in the event the facility financed under this subsection is not occupied by a public charter school, the loan shall be deemed to be in default.
(g) In repaying a loan granted under this section, a debtor may use facility maintenance funds granted to them by the District of Columbia Public Schools.
(h) The term of a loan within the context of a New Markets Tax Credit as this term is defined in the Internal Revenue Code, may extend to 7 years; all other loan terms under this subsection shall not exceed 5 years.