In June of 2013, Goldman Sachs announced a second investment in the SIB space. This time, the focus area was early childhood development. Specifically, the project proposed to avoid the special education costs when, through intervention, they can be helped to remain in regular school programs.

Partnering with Goldman in the project will be the United Way of Salt Lake City, Utah, as financial intermediary, and also the Granite School District of Salt Lake.

The program will be financed with two classes of debt — $4.6 million of senior debt from Goldman, and $2.4 million in junior debt from the Chicago-based Pritzker Foundation.

The special education cost for an elementary school child in the Granite School District is $2,600. The district will pay the United Way $2,470, plus a 5% interest component, for each year a high risk student avoids special education. After the debt is fully repaid, the financing contract calls for additional “success payments” equal to 40% of the avoided costs, or $1,040 per student. More Information