INDIANAPOLIS (AP) — The Indiana State Board of Education is moving ahead with a plan for distributing up to $40 million in loans to charter schools despite questions about a per-student funding cap.

At least a dozen charter schools have requested $25 million through the loan program approved by legislators this spring, although more could apply before the deadline at the end of October.

The board approved guidelines Wednesday with a $1,836-per-student loan cap if requests exceed $40 million.

Indiana Charter School Board director James Betley tells The Indianapolis Star the cap could make it hard for schools with small enrollments to obtain large enough loans to buy buildings or make other improvements.

Board of Education spokesman Marc Lotter says the cap is meant to help ensure schools can repay the loans.