Program Type: Loans
Also Known As: HBCU Capital Financing

The goal of the program is to provide low-cost capital to finance improvements to the infrastructure of the nation's HBCUs. Specifically, the program provides HBCUs with access to capital financing or refinancing for the repair, renovation, and construction of classrooms, libraries, laboratories, dormitories, instructional equipment, and research instrumentation. The program's authorizing statute caps the total amount of loans and accrued interest available through the program at $375 million. The program exceeded this statutory cap in 2007 and the U.S. Department of Education no longer has authority to make additional loans through the program.

In fiscal year 2006, Congress passed the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery (P.L. 109-234). Sec. 2601 of this act created a new subprogram within the HBCU Capital Financing program that would provide loans on advantageous terms to HBCUs affected by Hurricane Rita and Hurricane Katrina. Expiration date for this subprogram's authority: June 15, 2007.

This assistance comes through the issuance of federal guarantees on the full payment of principal and interest on qualified bonds, the proceeds of which are used for loans.