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Bill

SB 631

Charter School Revolving Loan Fund.

2025-2026 Regular Session Introduced by Laura Richardson

California establishes a revolving loan fund enabling charter schools to borrow for facility construction and improvements, creating sustainable infrastructure financing beyond traditional lending barriers.

Chaptered by Secretary of State. Chapter 776, Statutes of 2025.
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Bill Summary · SB 631

Legislative bill overview

SB 631 establishes a revolving loan fund to provide financing for charter school facilities, including construction, acquisition, and improvements. The fund allows charter schools to borrow capital for physical infrastructure needs, with repayment creating a sustainable source for future lending.

Why is this important

Charter schools often struggle to access traditional real estate financing due to their nonprofit status and lack of collateral, creating barriers to facility development. This revolving loan mechanism addresses a documented gap in charter school infrastructure funding while potentially reducing reliance on state capital appropriations for facility needs.

Potential points of contention

  • Loan burden on schools: Charter schools already operating with tight budgets may face difficulty servicing loan payments, potentially diverting resources from classroom instruction
  • Terms and conditions unclear: Without details on interest rates, repayment periods, and default provisions, it's unclear whether the fund structure truly benefits schools or shifts financial risk to them
  • Equity across charter sectors: The bill may inadvertently favor well-established charter operators with stronger financial positions over struggling or newer schools that need facilities most urgently

Compiled from official sources — confirm details with the bill’s official record.

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