Historically Black Colleges and Universities have played a vital role in American history. Originally created to provide educational opportunities for African Americans after the Civil War, more than 100 HBCUs are still open and thriving today.
The HBCU Capital Financing Program was created to help HBCUs finance important capital projects at the lowest cost of borrowing available in today’s challenging credit environment. The Department of Education guarantees repayment of principal and interest for each HBCU loan with the Secretary of Education’s Letter of credit and an escrow that borrowers can use to pay for any delinquency or default. Program loans range in size from under $10 million to more than $100 million.
Since 2009, Rice Capital Access Program has facilitated 60 direct loans for public and private higher education institutions through the program totaling $2.35 billion.