1. (a) The Authority will evaluate and determine Program loans based on the following:

   1. (1) The Applicant meets all Eligibility Criteria under Section 10170.18;
   2. (2) The Applicants demonstrates the ability to repay the loan; and
   3. (3) The Applicant demonstrates that use of loan funds will be strictly for supporting the operations and financing of the Charter School consistent with the intent of the charter pursuant to Education Code Section 47605.

2. (b) In addition, the Authority may consider the following criteria as it relates to the Application:

   1. (1) Soundness of the business plan, and the expertise of key management;
   2. (2) Availability to the Charter School of other sources of funds;
   3. (3) Impact of receipt of Program funds received on the receipt of other private and public financing;
   4. (4) Compliance with other Programs under the Authority, if the Charter School or its affiliate received an award under another Program;
   5. (5) Compliance with repayment of all prior Program loan(s), if the Charter School or its affiliate received all previous Program loan(s); and
   6. (6) In the Authority's evaluation of supporting financial information submitted pursuant to Section 10170.19, the Authority shall consider the reasonableness of projected financial performance and corresponding assumptions based on current and historical performance and Charter School's business and/or strategic plans. The Authority may consider current and historical performance, including cash flow, major revenues, degree of reliance on loans and fundraising, enrollment trends, student performance data, projected average daily attendance, expenses, and debt service coverage, if applicable.

3. (c) Priority shall be given in the following order:

   1. (1) To New Charter Schools for start-up costs.
   2. (2) Until July 1, 2029, to existing Disaster Affected Charter Schools.
   3. (3) To remaining existing Charter Schools.

4. (d) If there are insufficient funds available during an Application cycle, the Authority shall establish priority as follows:

   1. (1) Among New Charter Schools, if applicable, based on highest FRPM across Regions ensuring equal representation to the extent feasible among Regions pursuant to Section 10170.17(r)-(u).
   2. (2) Among existing Charter Schools that meet the criteria of subdivision (c)(2) based on the recency of the related event and the highest FRPM across Regions ensuring equal representation to the extent feasible among Regions pursuant to Section 10170.17(r)-(u).
   3. (3) Among remaining existing Charter Schools based on the highest FRPM across Regions ensuring equal representation to the extent feasible among Regions pursuant to Section 10170.17(r)-(u).
   4. (4) If there are insufficient funds to ensure equal representation as described in (d)(1)-(3), the Authority will prioritize applicants starting with Region One and continue numerically through Region Four.
5. (e) Pursuant to subdivision (d), in the event that the Charter School's FRPM data is not available, the Authority shall award loans based on the FRPM of the school's Chartering Authority

Note: Authority cited: Section 41365, Education Code. Reference: Sections 41365 and 41366.5, Education Code.

History

1. New section filed 2-3-2014 as an emergency; operative 2-3-2014 (Register 2014, No. 6). A Certificate of Compliance must be transmitted to OAL by 8-4-2014 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 8-4-2014 as an emergency; operative 8-4-2014 (Register 2014, No. 32). A Certificate of Compliance must be transmitted to OAL by 11-3-2014 or emergency language will be repealed by operation of law on the following day.

3. New section refiled 10-27-2014 as an emergency; operative 11-3-2014 (Register 2014, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-2-2015 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 10-27-2014 order, including amendment of subsection (b), new subsections (b)(4)-(5) and subsection renumbering, transmitted to OAL 1-29-2015 and filed 3-10-2015; amendments effective 3-10-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 11).

5. Amendment of subsections (b)(4)-(d) and new subsections (d)(1)-(e) filed 12-1-2016; operative 12-1-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 49).

6. Amendment of subsections (b)(5), (d)(1) and (d)(2) filed 4-20-2020 as an emergency; operative 4-20-2020 (Register 2020, No. 17). A Certificate of Compliance must be transmitted to OAL by 10-19-2020 or emergency language will be repealed by operation of law on the following day.

7. Emergency filed 4-20-2020 extended 60 days (Executive Order N-40-20) (Register 2020, No. 22). A Certificate of Compliance must be transmitted to OAL by 12-18-2020 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 4-20-2020 order transmitted to OAL 11-16-2020 and filed 12-30-2020 (Register 2021, No. 1).

9. Amendment filed 12-29-2025 as a deemed emergency pursuant to Education Code section 41365(h); operative 1-1-2026 (Register 2026, No. 1). A Certificate of Compliance must be transmitted to OAL by 6-30-2026 or emergency language will be repealed by operation of law on the following day.

10. New subsection (d)(4) and amendment of subsection (e) filed 4-15-2026 as a deemed emergency pursuant to Education Code section 41365(h); operative 4-15-2026 (Register 2026, No. 16). A Certificate of Compliance must be transmitted to OAL by 10-12-2026 or emergency language will be repealed by operation of law on the following day.

11. New subsection (d)(4) and amendment of subsection (e) refiled 6-19-2026 as a deemed emergency pursuant to Education Code section 41365(h); operative 7-1-2026 (Register 2026, No. 25). A Certificate of Compliance must be transmitted to OAL by 9-29-2026 or emergency language will be repealed by operation of law on the following day.