Interview conducted by Stephen Halasnik, Managing Partner, Financing Solutions, with Cheryl McDonough, Executive Director and Founder, Great Bay eLearning Charter School

Charter schools across the United States face a funding challenge that most people outside education never see. The money exists — but it rarely arrives on time. A school line of credit has become one of the most practical tools for bridging that gap. This is the story of how one New Hampshire charter school found a solution that worked.

A Client Story Featuring Great Bay eLearning Charter School

At Great Bay eLearning Charter School, education looks different — and intentionally so.

Students move freely, collaborate in groups, and engage in project-based learning designed for those who don’t always thrive in traditional classrooms. For more than two decades, the school has served a critical role in New Hampshire’s Seacoast community, helping students succeed in ways conventional systems often cannot.

But behind the energy of the classroom is a constant financial balancing act.

And according to Cheryl McDonough, Executive Director and Founder, one tool has made all the difference:

“The School Line of Credit from Financing Solutions has really been a godsend for us.”

A Financial Reality Few Outside Education Understand

Charter schools like Great Bay eLearning Charter School operate in a uniquely challenging financial environment. Despite being public schools, they often lack access to local tax revenue and must rely heavily on state funding — funding that can be both limited and unpredictable in its timing.

“People assume we’re funded adequately because we’re a school,” Cheryl McDonough explains. “But we’re not.”

In New Hampshire, the situation is especially difficult. Charter schools receive a fixed per-student amount, while traditional public schools can supplement their budgets through property taxes. That gap creates pressure — but timing creates risk.

“We know the money’s going to come in. It’s just not always there in time for payroll.”

Finding a Partner Willing to Say “Yes”

Before working with Financing Solutions, Cheryl McDonough explored multiple funding options with banks. Most led nowhere.

“I contacted a lot of places… Financing Solutions were the only one who really gave me a serious conversation.”

For many nonprofits and schools, this is the norm — long applications, slow responses, and ultimately, rejection. What stood out immediately was not just approval, but how the process felt.

“Your responsiveness — number one — every time I have a question, I get an immediate answer. You didn’t get impatient at all, because we’re new at this. Christina called me a couple of times and said, ‘I don’t think this is what you meant,’ and helped me through it.”

For Cheryl, the experience wasn’t just transactional — it was collaborative.

Speed That Matters When It Counts

For a school managing real-time obligations like payroll, timing is everything. Traditional financing can take weeks or months. Financing Solutions delivered access in days.

“When I applied with you, it took under a week to get it available to us.”

That speed gave the school something invaluable: certainty.

“Funding the Gaps”: How the School Line of Credit Is Used

Cheryl McDonough describes the line of credit in simple, practical terms: “We call it funding the gaps.”

The school uses the line of credit for short-term needs including covering payroll timing gaps, paying licensing and operational fees, supporting building-related expenses, and bridging delays in funding disbursements.

Importantly, the funds are not used as long-term debt. They are used, then repaid — quickly.

“We paid it back… we’re trying our best to live within our budget but it’s great having a safety net.”

This disciplined approach allows the school to stay stable without accumulating unnecessary financial burden.

A Rare Combination: Flexibility and Trust

What made the biggest difference for Cheryl McDonough wasn’t just the product — it was the people behind it.

“Everything works the way Financing Solutions told me. I’ve been incredibly happy — with the people, with the process, and especially with the line of credit. Before I came to Financing Solutions, I read their reviews, and everyone was super happy with the company.”

In a space where many institutions are overlooked, having a partner willing to listen — and act — can change everything.

Supporting Stability During Uncertainty

The need for flexible financing has only increased as external pressures on schools continue to grow. Changes in federal funding, evolving regulations, and economic uncertainty have created additional strain across the education system.

For Great Bay eLearning Charter School, the line of credit has helped absorb that volatility and allowed leadership to stay focused where it matters most: students.

Looking Ahead: Growth, Expansion, and Opportunity

The school is now working toward a major milestone — a move into a new facility that could transform its future.

“That new building is going to change everything.”

With expanded space, the school expects increased enrollment, enhanced programming, and greater long-term sustainability. And as the school grows, so does its relationship with Financing Solutions.

“At some point… we’d love to ask for a bigger credit line.”

A Model for Charter and Private Schools Nationwide

The experience of Great Bay eLearning Charter School reflects a broader truth: many schools don’t fail because they lack funding. They struggle because of when that funding arrives. A school line of credit — used responsibly — bridges that gap. But just as important as the product is the partner behind it.

For Cheryl McDonough, Executive Director and Founder, that distinction is clear.

“It’s been a godsend for us.”

Key Takeaways

Charter schools often face timing gaps in funding, not a lack of funding overall. Traditional lenders frequently do not serve nonprofit schools effectively. A school line of credit provides flexible, short-term financial support. Speed, responsiveness, and personal support make a meaningful difference. The right partner can help schools stay stable and continue growing.

About Great Bay eLearning Charter School

Founded in 2004, Great Bay eLearning Charter School provides a project-based learning environment for students who benefit from a more flexible and engaging approach to education. The school serves K–12 students and continues to be a vital resource for families across New Hampshire.

Does your school face similar cash flow challenges? Learn more about our School Line of Credit or apply in 2 minutes.