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Gateway Preparatory Academy Enoch, Utah
Loan Fund Project Highlight
Where: Enoch, Utah
Need: Gateway Preparatory Academy wanted to buy the school building they were leasing. With the credit crunch brought on by the Great Recession, bond financing was not available.
Solution: Working with the USDA Guaranteed Community Facilities Loan program, RCAC provided a $5. 8 million 30-year fixed rate loan.
Gateway Preparatory Academy, Inc. (GPA) is a non-profit, K-8 charter school serving Iron County, Utah. GPA is located in Enoch, Iron County, Utah. The School’s service area is the Iron County School District. GPA began operations in fall 2008 with 556 students who reside in the cities of Enoch, Cedar City and Parowan. According to the 2000 U.S. Census, Enoch and Parowan have a population of 3,367 and 2,565, respectively. Cedar City has a population of 20,527.
Gateway Preparatory Academy
GPA’s special educational focus is on increased individual attention to improve student learning, as well as allowing students to progress at their own pace using the Montessori teaching philosophy. GPA believes it is important that students “learn how to learn” rather than just amass academic knowledge. Their attention focuses on individual development and on the premise that progressive education is important.
GPA leased its 52,902 sq/ft. facility with lease payments escalating at 3 percent each year. The facility purchase provided the school with future financial stability as the long-term financing will decrease the school’s facility expense on an annual basis.
With the recent problems in the credit markets, Gateway was unable to find bond financing or other traditional financing vehicles. GPA combined a direct loan from USDA of $3.4 million with an RCAC loan of $5.8 million to finance the purchase of the school, ensuring the school’s long-term stability.
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