Charter School Revolving Loan Fund.

Senator Richardson's proposal to modify California's Charter School Revolving Loan Fund doubles the maximum loan amount available to charter schools while expanding eligibility to include schools converted from existing institutions. The legislation increases both the per-loan and lifetime borrowing caps from $250,000 to $500,000 per charter school.

The bill establishes a three-tier priority system for loan distribution, with new charter schools receiving first consideration, followed by schools affected by state-declared natural disasters, and then all other charter schools. Repayment terms vary by priority category - schools in the first and third tiers must repay within five years, while disaster-affected schools may take up to eight years. The legislation also modifies default liability requirements, making both the charter school and its managing entity responsible for repayment.

Under the revised interest rate structure, loans will be issued at either the Pooled Money Investment Account rate or half the state's most recent general obligation bond rate, whichever is lower, with a minimum rate of 3%. Charter schools must make regular interest payments from their annual apportionments, with these payments directed to the Charter School Security Fund. The California School Finance Authority retains administrative oversight of the fund and may adopt emergency regulations as needed for implementation.