Saint Augustine’s University Gets $7M Loan In Credit Agreement
August 18, 2024
The credit agreement will allocate a $7 million term loan for the HBCU to resolve its outstanding debts.
Saint Augustine’s University (SAU) will start off the school year with a boost in cash flow. The once-troubled North Carolina HBCU has entered a credit agreement with Gothic Ventures.
To start the new partnership, SAU will receive a $7 million term loan. However, the school may receive up to $30 million from the agreement in additional rollouts. According to the school’s Board of Trustees, the financial cushion will ensure SAU can sustain and grow its operations.
“The partnership with Gothic Ventures marks a pivotal moment for SAU as it embarks on a multi-year strategic plan to stabilize and grow the University,” said SAU Board of Trustees Chairman Brian Boulware in a statement reported by HBCU Gameday. “This funding secures our immediate needs while allowing us to implement our long-term vision. We believe our partnership with Gothic Ventures will be crucial to our journey toward excellence.”
SAU’s Interim President, Marcus Burgess, also added, “This loan represents a significant affirmation of our commitment to our students and staff. We are grateful for the belief that Gothic Ventures has placed in our vision, allowing us to focus on enhancing the academic experience while showcasing our resilience in the face of adversity.”
The initial loan, secured by a deed of trust on SAU’s real estate holdings, will go toward resolving the school’s debts. These issues extend to employee salaries, student credit balances, and the external audit. The school’s financial concerns initially led to the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) removing their accreditation. However, the organization reversed the decision in July.
In light of this new development, Gothic Ventures decided to support the HBCU as it navigates this new era.
“We are excited to partner with Saint Augustine’s University during this pivotal time,” expressed Kip Johnson, Gothic Ventures Founder and Managing General Partner. “Our belief in the transformative power of education aligns with the University’s historic mission, and we are confident that this collaboration will lead to future successes for the institution and its community.”
The school, which prompted students to leave campus early last semester, intends to resume normal operations for the fall.
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