PHOENIX — A 12 News analysis of federal records shows 120 Arizona charter schools applied for and received Paycheck Protection Program (PPP) funds. The forgivable loans are intended to help businesses pay employees during the pandemic.
Every public school in Arizona, including charter schools, already received a minimum of $50,000 through the federal CARES Act. But about 20% of charter schools applied for the additional PPP loans, most ranging from $150,000 to a million dollars.
Find businesses that received PPP funding here.
A spokesperson for the Arizona Charter School Association tells 12 News many charter schools lost revenue beyond what they are paid from the state, such as after-school programs and fundraising events.
“As Congress intended, these federal funds have enabled charter schools to avoid layoffs to teachers and staff members while minimizing disruption to the education of Arizona students,” said Matthew Benson.
Unlike many businesses that applied for PPP loans, charter schools enjoy a steady stream of per-pupil state funding that wasn’t disrupted during the pandemic.
“Even though all schools face some uncertainty going into next year, there’s a question of why these schools felt they needed to get PPP money,” said Dave Wells, an education researcher at Grand Canyon Institute.
Among all the school leaders 12 News contacted, none agreed to be on-camera to explain their justification for getting the funds.
Businesses receiving PPP loans will need to show at least 60% of the loans went to payroll costs.