One of North Carolina’s historically black colleges/universities (HBCU) starts its school year with a big win thanks to a new partner in the Triangle. Saint Augustine’s University (SAU) announces the closing of a credit agreement with Gothic Ventures, making it eligible to receive up to $30 million. An initial allocation consists of a $7 million term loan funded at closing. Additional allocations may be provided in the future. This strategic partnership will enhance the university’s capacity to successfully commence the fall 2024 academic semester. This vital funding underlines the university’s resilience and commitment to quality education. The agreement is secured by a deed of trust on the University’s real estate holdings.
“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. “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.”
The immediate impact of the $7 million term loan from Gothic Ventures is significant. It will address critical short-term cash flow requirements, ensuring the university can effectively manage its operations. Funds will be allocated to support the completion of the external audit, settle outstanding employee salaries, refund student credit balances, and cover essential operational expenses. To ensure a smooth transition, the university’s external payroll agent will process all outstanding payroll sequentially.
“This loan represents a significant affirmation of our commitment to our students and staff,” said SAU Interim President Marcus H. Burgess. “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.”
Saint Augustine’s University is fully committed to navigating current challenges, and this partnership is a testament to its strength and determination to thrive. The university eagerly anticipates welcoming students back this fall with renewed vitality and resource allocation, fostering an environment of exceptional educational opportunity. Our commitment to our mission and the community remains resolute.
“We are excited to partner with Saint Augustine’s University during this pivotal time,” said 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.”
Click here to learn more about SAU’s Fall Semester Plans.
Saint Augustine’s University, an HBCU located in Raleigh, NC, is facing significant financial and accreditation challenges in 2024. The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) initially decided to remove the university’s accreditation, a devastating blow for any HBCU, as accreditation is crucial for federal funding and overall credibility. This decision was largely influenced by the university’s severe financial issues, including a $7.9 million tax lien and an inability to meet payroll on time.
These financial struggles have also led to the suspension of the university’s football program, further compounding the challenges faced by this historic HBCU.
Things began to turn around last month, however, when the school’s accreditation was re-instated.
– Courtesy: Saint Augustine’s University