To address the difficulties Historically Black Colleges and Universities often face accessing
traditional funding sources, the U.S. Department of Education created the HBCU Capital Financing Program
and selected Rice Capital Access Program, LLC, to administer the program loans.
RICE CAPITAL ACCESS PROGRAM
Providing Low Cost Capital for HBCU Improvements
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 $200 million.
Since 2009, Rice Capital Access Program has facilitated 60 direct loans for public and private higher education institutions through the program totaling $2.8 billion.
HBCU LOAN RATES
- HBCU loans are the lowest cost way to finance capital projects.
- Rates vary according to the term of the project.
- Loans are available at 0.225% (22.5bp) over the corresponding short‐term
Treasury note or long‐term Treasury bond and are often fixed for the life of the loan.
Program Updates and News
Transaction Highlights
$29,000,000
University of the Virgin Islands
New Money Loan
08/22/23
$58,500,000
Morehouse College (GA)
New Money Loan
02/22/23
$226,500,000
Howard University (DC)
New Money Loan
01/25/23
$19,500,000
Virginia Union University
New Money Loan
01/18/23
$65,000,000
Morgan State University (MD)
New Money Loan
12/01/22
$41,000,000
Dillard University (LA)
New Money Loan
10/20/22
$34,250,000
Fisk University (TN)
New Money Loan
08/19/22
$39,750,000
Meharry Medical College (TN)
New Money Loan
03/16/22
$15,000,000
Miles College (AL)
Restructuring
10/26/21
$47,000,000
University of the
Virgin Islands
Refinancing and
New Money Loan
11/13/19
$44,000,000
Florida Memorial University
Refinancing
10/23/19
$70,000,000
Alabama A&M University
New Money Loan
9/19/19
$100,000,000
GRAMBLING STATE UNIVERSITY (LA)
Refinancing and
New Money Loan
11/30/16
$36,600,000
South Carolina State University
Loan Refinancing
9/27/16
$25,000,000
Jarvis Christian College (TX)
Refinancing and
New Money Loan
7/28/16
$38,000,000
Livingstone College (NC)
Refinancing and
New Money Loan
12/3/15
$21,000,000
Lawson State Comm. College (AL)
Refinancing and
New Money Loan
7/16/15
$14,727,000
Philander Smith College (AR)
Refinancing
6/11/15
$19,000,000
University of the Virgin Islands
New Money Loan
2/27/15
$30,035,000
Arkansas Baptist College
Refinancing and
New Money Loan
12/3/14
$26,150,000
Johnson C. Smith University (NC)
Refinancing and
New Money Loan
8/28/14
$18,500,000
Voorhees College (SC)
Refinancing and
New Money Loan
6/26/14
$7,500,000
Grambling State University (LA)
New Money Loan
5/29/14
$13,500,000
Central State University (OH)
Refinancing
9/24/13
$19,000,000
Morehouse College (GA)
Refinancing
9/10/13
$56,000,000
Benedict College (SC)
Refinancing and
New Money Loan
6/27/13
$60,065,000
Hampton University (VA)
Refinancing
5/30/13
$55,000,000
Texas Southern University
New Money Loan
9/27/12
$40,000,000
Stillman College (AL)
Refinancing
9/13/12
$60,000,000
Meharry Medical College (TN)
New Money Loan
8/30/12
$16,060,000
Florida Memorial University
New Money Loan
6/7/12
$96,000,000
Alabama A&M University
Refinancing and
New Money Loan
9/24/15
$27,500,000
Morehouse School of
Medicine (GA)
Refinancing and New
Money Loan
10/18/17
$28,000,000
Tuskegee University (AL)
Refinancing
8/4/17
$12,500,000
Southern University at
Shreveport (LA)
Refinancing
9/28/17
$27,000,000
Southern University of Baton Rouge
Refinancing
12/6/17
$152,000,000
ALABAMA STATE UNIVERSITY
Refinancing
03/06/18
$25,000,000
MORGAN STATE UNIVERSITY (MD)
New Money Loan
11/15/18
$18,000,000
Johnson C. Smith
University (NC)
Refinancing
12/11/19
$100,000,000
Xavier University (LA)
Refinancing and
New Money Loan
6/25/20
$125,000,000
Florida A&M University
Refinancing and
New Money Loan
3/6/19
$69,750,000
MORGAN STATE UNIVERSITY (MD)
Refinancing and
New Money Loan
10/29/20
$48,500,000
MEHARRY MEDICAL COLLEGE (TN)
New Money Loan
8/19/20