Starting a school is a big responsibility – both to the families in your school as well as to the funders who have invested money in your school. We expect that you’d be ready to carry that responsibility before accepting the loan. That said, life does happen. If it does, here are some options.

Before you accept the loan, you’ll create a legal entity that represents the school. The loan will be made to that company, not to you personally. If you need to step down, you can bring on another owner of the school, and that person would take on the responsibility of repaying the loan. If you are unable to keep the doors of your school open for whatever reason and the school closes before repaying the loan, the loan would be in default. At that point in time, the funders would go through the appropriate legal channels to claim remaining assets of the school and regain as much of the outstanding loan as possible. Of course, we would hope that you would reach out to us for help before reaching that point, and we’ll do what we can to help you keep your school open!