Tax-exempt bonds are a very attractive source of financing for charter school facilities. Interest rates on these bonds are lower than traditional sources of financing due to their tax-exemption.

Tax-exempt bonds also allow charter schools to fix these lower rates over a longer, fully amortizing term, generally 30 years and in certain cases exceeding 40 years.

Longer amortization terms allow charter schools to grow enrollment and revenues to full capacity without incurring large annual debt service expenses that can drain program resources.