City of Chicago Announces 5th U.S. Pay for Success Program

Published Friday, October 10, 2014 | by Chicago Mayor’s Press Office

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The City of Chicago announced a $16.9 million social impact bond deal to provide early childhood educational services (pre-K) to up to 2,620 children over the next four years. The intervention being funded by the social impact bond will work with both children and their parents through the half-day Child-Parent Center (CPC) model. Goldman Sachs' Social Impact Fund and Northern Trust are serving as the senior lenders with the J.B. and M.K. Pritzker Family foundation in a subordinate position. The intervention goals include increasing Kindergarten readiness, improving third-grade literacy, and reducing the need for special education. This deal is the second deal in the US in early childhood education. The first was launched in July 2013 – also with Goldman Sachs and Pritzker with the United Way of Salt Lake County, Utah. This SIB will be the 5th to be launched in the US.