Qualified Zone Academy Bond Program

INFORMATIONAL LETTER: 51
POLICY CODE: FJ

TO: Superintendents of Schools, Business Managers, and Facilities Managers

FROM: Susan A. Gendron, Commissioner

DATE: November 14, 2007

RE: Qualified Zone Academy Bond Program

The Federal Qualified Zone Academy Bond (QZAB) program provides low cost loans through financial institutions to school districts that meet certain rural and poverty characteristics. Maine currently has a 2007 QZAB allocation balance of $739,000 which is available to be awarded to qualifying school districts.

A Qualified Zone Academy is any public school, or academic program within a public school, designed in cooperation with business to enhance curriculum, increase graduation and employment rates, and better prepare students for college and the workforce. In order to be eligible, schools must have at least a 35% free or reduced lunch rate or be located in an empowerment zone or enterprise community.

Funds obtained through the QZAB program must be used for qualified purposes which include rehabilitation or repair of a facility, equipment purchases, developing course materials, and training teachers and other personnel. A school district issuing a QZAB is required to obtain a 10% matching grant from a private entity. Additional information is available at the U.S. Department of Education website at http://www.ed.gov/programs/qualifiedzone/index.html .

In order to take advantage of this financing mechanism, please complete the FY 2008 QZAB loan application which is available on the Department’s website at: http://www.maine.gov/education/const/ffgrants.htm . The deadline for submitting QZAB applications for this cycle is January 31, 2008.
If you have questions about the QZAB program or application, please contact Ann Pinnette at 624-6885 or ann.pinnette@maine.gov .