Closing brings OFN's cumulative BGP origination to nearly $1 billion, provides affordable long-term financing for educational facilities in rural and distressed markets at no direct cost to taxpayers
WASHINGTON, Jan. 28, 2026 /PRNewswire/ -- Opportunity Finance Network (OFN) and 22Beacon (formerly Charter Schools Development Corporation) today announced the closing of a $100 million bond issuance designed to tackle the critical shortage of high-quality facilities for America's charter schools. The transaction, which will be used by charter schools to purchase and renovate buildings, was administered by the U.S. Department of the Treasury's CDFI Fund and secured through the CDFI Bond Guarantee Program (BGP), a federal credit authority which makes long-term, fixed-rate capital available that is increasingly scarce in the traditional capital market.
"This bond demonstrates how an innovative federal credit program can mobilize private capital to expand opportunity in communities across the country without a cost to American taxpayers," said Harold Pettigrew, President and CEO of OFN. "Since 2014, OFN has worked alongside outstanding member CDFIs like 22Beacon to deploy nearly one billion dollars through the Bond Guarantee Program, delivering long-term, affordable capital that supports local jobs, builds essential community infrastructure, and strengthens the economic future of communities across the country."
"The real winners here are the students and families who will now have access to safe, permanent school buildings that match the excellence happening in their classrooms," said Alan Washington, President and CEO of 22Beacon. "Too many schools in underserved and under resourced communities are held back by inadequate facilities. This capital allows us to turn facilities into assets rather than liabilities, helping schools move from surviving to thriving while strengthening the entire educational ecosystem."
A Proven, Fiscally Responsible Market Solution
The BGP is an innovative federal credit program designed to operate at no direct cost to taxpayers, while significantly expanding private capital investment in underserved communities. Backed by the U.S. Treasury, BGP provides long-term, fixed-rate financing to CDFIs and has supported more than $3 billion in bond issuances since its inception. Its track record demonstrates that well-structured federal credit programs can scale community development investment responsibly, leveraging private capital without increasing federal spending.
A Durable Capital Solution for Long-Term Affordability
BGP financing offers up to 30-year, fixed-rate debt that enables projects to lock in predictable costs over decades—an essential feature for sustaining long-term affordability. Unlike traditional commercial loans that require frequent refinancing and expose projects to interest-rate volatility, BGP eliminates refinancing risk and stabilizes debt service. This certainty lowers the overall cost of capital, strengthens project viability, and allows affordable projects to remain accessible and financially sustainable over the long term.
Bridging the Gap for School Infrastructure
As demand for charter schools continues to grow, access to affordable facilities financing remains one of the most significant barriers to entry. Traditional lenders often view charter schools as specialized or niche borrowers, offering short-term, higher-cost debt that diverts scarce operating resources away from students, educators, and academic programming.
This $100 million bond, 22Beacon's second allocation through the program, directly addresses that market failure. With access to 30-year, fixed-rate financing, 22Beacon can provide charter schools with stable, low-cost capital comparable to what municipalities or large institutions receive, enabling schools to invest in permanent facilities while preserving resources for classroom instruction and long-term sustainability.
About Opportunity Finance Network (OFN)
Opportunity Finance Network (OFN) is the nation's leading network and intermediary focused on community development investment, managing more than $1 billion in total assets and a membership of nearly 500 community development financial institutions (CDFIs), which includes community development loan funds, credit unions, green banks, banks, minority depository institutions, and venture capital funds. Our network of CDFIs works to ensure communities left behind by mainstream finance have access to affordable, responsible financial products and services, with a deep focus on serving rural, urban, and Native communities across the United States. OFN is a trusted investment partner to the public, private, and philanthropic sectors – foundations, corporations, banks, government agencies, and others – and, for more than 40 years, has helped partners invest in communities to catalyze change and create economic opportunities for all.
Since its founding in 1986, OFN members have originated $124 billion in cumulative financing, helping to create or maintain nearly 3.4 million jobs, start or expand more than 1 million businesses and microenterprises, and support the development or rehabilitation of more than 3 million housing units and more than 15,000 community facility projects.
About 22Beacon
22Beacon is a national nonprofit and Community Development Financial Intuition (CDFI) dedicated to breaking barriers in public education by expanding access to high-quality facilities for schools and communities that need them most. As a partner to charter schools serving more than 100,000 students across 30 states—and have leveraged over $1 billion in financing capital—22Beacon provides innovative financing solutions, strategic partnerships, and deep expertise in facilities development. The organization helps schools create and sustain inspiring learning environments where students can thrive. Since its founding, 22Beacon has supported hundreds of schools in opening their doors and serving families with excellence and equity. Visit www.22beacon.org to learn more.
SOURCE Opportunity Finance Network
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