More than two-thirds of New Orleans charter school organizations have applied for federal loans through congressional law to help keep businesses afloat during the coronavirus pandemic, drawing criticism from some groups for having tapped into a program that was not available to mainstream schools.

Dozens of New Orleans schools have asked Payroll Protection Program Loans, aimed at protecting small businesses from shutdown due to COVID-19, according to interviews and a review of documents from more than 40 school boards in New Orleans.

At least a third of the charters had received loans, with officials from these organizations claiming to have secured between $ 97,000 and over $ 5.1 million in funds, according to their payroll.

“The COVID-19 pandemic has severely affected the city of New Orleans and has created great economic uncertainty for our schools over how we can continue to operate, employ all of our employees, and not significantly reduce services for them. students, many of whom will return to school with learning gaps and in need of additional social and emotional support, ”said Kate Mehok, CEO of Crescent City Schools, which received $ 3 million.

The money, which comes from a $ 349 billion stimulus package put together by the federal CARES law of 2,000 billion dollars, can be forgiven if all employees are kept on the payroll for eight weeks and the money is used for salary, rent, mortgage interest or utilities, according to the US Small Business Administration, which along with the Treasury Department, is implementing the program.

Critics had previously blasted charter schools across the country for the nominations, accusing nonprofits of abusing their status and double dip, and were upset to learn of the dozens of upcoming nominations from the New Orleans, which this year became the first major American city not to have traditional schools.

Like traditional schools, local charters have already received funding from the CARES Act through the Louisiana Department of Education. But unlike the charters, district-run schools were not eligible for additional payroll loans.

The chartered organizations each received hundreds of thousands of dollars from 260 million dollars distributed to districts and charters at the end of April under the Elementary and Secondary School Relief Fund, another part of the CARES Act, mainly for technology and distance learning.

Supporters of charter loans, including NOLA public schools, say funds could prove essential for charters in years to come, amid forecasts of declining sales tax revenues, funding problems the state and the decline in fundraising that some charter schools rely on. strengthen their budgets.

“We support schools in their efforts to secure these resources to ensure they have the funding they need to help students continue to grow and succeed, especially given the significant cuts in state funding and local planned this school year and beyond, ”said the Orleans Parish School District. officials said. “Now more than ever, these students rely on the stability of their schools and teachers.”

Charter leaders noted that their per-pupil funding relies heavily on taxes, and sales tax revenues have declined significantly. Officials with the Association of charter schools of Algiers, who raised around $ 3 million, called it “a lifeline.”

Some said they were losing thousands of dollars to canceled annual fundraisers, couldn’t sell bonds to make up the difference, and could face additional expenses related to the coronavirus. For example, they expect to have to buy more technology for distance learning, cleaning and medical supplies, and incur additional transportation costs if schedules are stacked for social distancing.

The school district is still in the process of determining how much income could drop. But last month, a school board committee learned that the best-case scenario might be a 13% drop in per-student income for the year 2020-2021.

Nash Crews, COO for New schools for New Orleans, said that funding had never been sufficient in a neighborhood where more than 80% of students are economically disadvantaged, and Caroline Roemer, head of Louisiana Association of Public Charter Schools, said schools had to demonstrate their need before obtaining funds.

The program, however, has been controversial since its launch in the spring. Critics complained that some large companies, like national chain Ruth’s Chris Steakhouse, were able to raise large loans from the program, while small businesses could not get any because funds were drying up. Ruth’s Chris finally paid off her loan.

Thanks to lobbying from national charitable organizations, schools in New Orleans were eligible to apply for the program, as they are run by separate, nonprofit boards.

And, because government-run schools were not eligible, schools in New Orleans might fare better than those in neighboring parishes directly run by traditional districts.

This is problematic for Carol Burris, executive director of the Public Education Network, a national political group backed by union members that has criticized charter schools.

“You can’t have the privileges of being a private entity and being a public entity at the same time,” Burris said. “It’s not fair.”

The Burris Group started a petition ask Congress to stop granting charter school loans.

“We have men and women across the country who work for small businesses, who currently have no income, who are given free food because they have no income and cannot take care of. their family, ”Burris added. “Charter schools always have a revenue stream.”

The group Parents united for public schools also criticized chartered organizations nationwide for applying for the loans while running schools with strong fund balances and wealthy donors.

Several New Orleans charters had healthy budgets in April, and at least one – Warren Easton Charter High School – has benefited from hundreds of thousands of dollars in donations from a great supporter, actress Sandra Bullock.

Officials at Warren Easton, who requested a loan, did not respond to requests for comment on the amount requested.

Although public support for the loans was strong, meeting documents show that at least some board members felt apprehensive about accepting the loans.

A financial report for DIY Academy also showed that a board committee was reviewing the terms of the loan in April with lawyers to decide whether to pay it back.

Mehok, in the meantime, said critics are pointing the finger at the wrong people.

“The question we should ask ourselves is why traditional districts were not allowed to apply for PPP money,” she said. “Also, ask how the federal government intends to provide much needed relief to all public schools across the country to counter the sharp drop in income.”