New Millennium Bank and GNYDC secures financing for 33,000 s/f school

The Miftaahul Uloom Learning Center recently decided to expand its preschool to high school programs. Founders of the Montessori-affiliated initiative were willing to invest and raise substantial sums of money but they knew it would take more to establish a first-class facility. And, they knew it would be preferable to own the facility in order to establish stability in the community. An affordable financing package from New Millennium Bank and the New Market Loan Fund-provided by Greater New York Development Co. (GNYDC) has enabled the learning center to move from its 100 children capacity basement space to a 33,000 s/f former school, located at 4613 Cottage Pl. The new space quadruples its capacity and contains amenities necessary to a first-class school operation-including a state of the art gymnasium, cafeteria, auditorium and outdoor space. The building is a former Catholic school, in move-in condition. The sellers, The Sisters of the Catholic Apostolate Pallotines, are including all furniture and fixtures, including desks and office furnishings in the transaction. The real estate is in a New Market Tax Credit-eligible area and is designated as an Economic Development Zone, Housing Hot Zone; and other categories. It is also in a N.J. designated Abbott School District, qualifying it for special funding for school programs including daycare and charter school programs. With the combined profiles of Abbott Daycare, pre-school eligibility, Montessori operations and a parochial school, the Learning Center is a multi-dimensional facility able to serve its community in a diversely. Miftaahul Uloom Inc. was formed in 1994 to operate a preschool daycare and Montessori program. The new facility will enable program expansion, an increase of students, a better classroom experience and an expansion of jobs. Financing for the facility was provided by New Millennium Bank with a 50% first lien, $1.625 million, the New Market Loan Fund from GNYDC for a 40% second lien of $1.225 million with 10% of the total project cost being provided by the school. GNYDC's New Market Loan derives from the nationally known community development entity- Community Reinvestment Fund (CRF), a 40 year old community development funding program. The financing package has enabled the learning center to use its fundraising efforts and operating funds for the working capital needs of the move/expansion. The New Market Fund provided by GNYDC provides low cost financing to not-for-profits to better communities.