When the Regional Economic Community Action Program (RECAP), which is Orange County’s designated anti-poverty agency, was in danger of losing their existing lease arrangement in Port Jervis, NY they turned to the nonprofit PACER, Inc. to create an opportunity for a new long term lease for their Head Start operations. PACER, which is based in Middletown, has as its mission to own, develop and rent facilities that allow nonprofits to fulfill and expand their programs. A loan from the Leviticus Fund allowed PACER to deliver on developing 2,500 square feet of nursery school space that is being utilized by RECAP, under a lease agreement for the next five years with an option to renew. This collaboration between Leviticus, PACER, and finally RECAP, as the tenant, allows a 30 year-old Head Start program to continue in a new and updated facility.
In creating the loan, Leviticus was able to structure $359,000 that met the needs of PACER, and our capital is already at work. Our loan allowed PACER to acquire an office building in Port Jervis and transform it into space for RECAP to run one of its three Head Start Programs in the county. The additional space will provide education, health, dental, mental health, and nutrition programs for up to 50 preschool children, and the new facility is expected to open in time for the 2019-2020 school year.
This loan is an excellent illustration of one of our guiding principles: that good underwriting must be holistic, factoring in a nonprofit applicant’s character and professional capacity along with its capital and collateral.
