The Department has statutory authority to guarantee bonds for up to $1.1 billion (no more than $733,333,333 must be used for private HBCUs and no more than $366,666,667 will be used for public HBCUs). Currently, the HBCU Capital Financing Program's outstanding balance is about $1.74 billion ($808 million attributed to public HBCUs and $935 million attributed to private HBCUs). The outstanding interest and principal cannot exceed $1.1 billion. Congress has provided authority, in an appropriations bill, to exceed the statutory limit and to make loans to public and private HBCUs without considering if an HBCU is public or private.
The remaining amount of funds available to lend in any year is determined by annual Congressional appropriations and that amount can vary. For Fiscal Year 2024, Congress provided $20,150 million in subsidy to make $377 million in new loans.
Loan Transactions
To date, the Historically Black College and University (HBCU) Capital Financing Loan Program has originated 141 loans to 52 HBCUs, including 16 public HBCUs and 36 private HBCUs. These colleges and universities have used their loan proceeds to refinance previous capital project loans, to renovate existing facilities, to build new facilities, or to achieve any combination of the three.
On December 27, 2020, the President signed into law the “Consolidated Appropriations Act, 2021 (Pub. L. 116-260) provides that the Secretary of Education repay, for each institution of higher education that is a participant in the HBCU Capital Financing Program, the institution’s outstanding balance of principal, interest, and fees on the disbursed loan amounts on closed loan agreements as of December 27, 2020. Through this Act, there were 75 loans discharged and 11 loans which remained.
Through repayments and refunding, there are currently 35 loans outstanding to 20 colleges and universities with loan amounts ranging from $6 million to $226.5 million. These institutions have received loans totaling approximately $1.74 billion. Public HBCUs have received about $808 million in loan proceeds and private HBCUs have received about $935 million in loan proceeds. There are 12 active construction projects.
2025
South Carolina State University
November 2025 - $72,000,000
Program loan:
- Construct new stuent housing facility
- Renovate existing student housing
- 20-year fixed rate financing
Morgan State University
July 2025 - $35,000,000
Program loan:
◦ Finance the demolition of an existing student housing facility
◦ Construct new dining facility, safety bridge, and multi-level parking structure
◦ Finance various campus-wide deferred maintenance
◦ 30-year fixed rate financing
Xavier University of Louisiana
June 2025 - $96,000,000
Program loan:
◦ Construct new student housing facility
◦ 25-year fixed rate financing
Lincoln University (PA)
March 2025 - $56,000,000
Program loan:
◦ Construct new student housing facility
◦ 30-year fixed rate financing
Alabama Agricultural and Mechanical University
September 2024 - $157,000,000
Program loan:
- Construct new STEM building
- Construct new student amenities building
- 30-year fixed rate financing
Hampton University
June 2024 - $91,500,000
Program loan:
- Finance various capital improvements
- Refinance debt
- 30-year fixed rate financing
Morehouse College
June 2024 - $11,500,000
Program loan:
- Construct new student housing facility
- 30-year fixed rate financing
Florida Agricultural and Mechanical University
February 2024 - $97,500,000
Program loan:
- Construct new student housing facility
- 30-year fixed rate financing
Benedict College
November 2023 - $10,000,000
Program loan:
- Campus wide energy performance upgrades
- 30-year fixed rate financing
Tuskegee University
November 2023 - $35,000,000
Program loan:
- Renovate existing student housing facilities
- 30-year fixed rate financing
The University of the Virgin Islands
August 2023 - $29,000,000
Program loan:
- Construct new medical academic facility
- Reconstruct existing research and performing arts facilities
- Purchase furniture, fixture, and equipment
- 30-year fixed rate financing
Morehouse College
February 2023 - $58,500,000
Program loan:
- Construct new student housing facility
- Various capital improvements
- 30-year fixed rate financing
Howard University
January 2023 - $226,500,000
Program loan:
- Construct new STEM building
- 30-year fixed rate and variable rate financing
Virginia Union University
January 2023 - $19,500,000
Program loan:
- Renovate existing student housing and academic facilities
- Various capital improvements
- Finance a portion of acquisition cost
- Refinance debt
- 30-year fixed rate and variable rate financing
Morgan State University
December 2022 - $65,000,000
Program loan:
- Renovate campus buildings and deferred maintenance
- 30-year fixed rate financing
Dillard University
October 2022 - $41,000,000
Program loan:
- Construct new student housing facility
- 30-year fixed rate financing
Fisk University
August 2022 - $34,250,000
Program loan:
- Construct new Health Services and Training Center
- Construct new student housing facility
- 30-year fixed rate financing
Meharry Medical College
March 2022 - $39,750,000
Program loan:
- Construct new living learning center and parking facility
- 30-year fixed rate financing
Miles College
October 2021 - $15,000,000
Program loan:
- Refinance debt
- 20-year fixed rate financing
Southern University at Baton Rouge
September 2021 - $69,000,000
Program loan:
- Construct new student center
- Construct new student housing facility
- 30-year fixed rate financing
Bethune-Cookman University
June 2021 - $108,000,000
Program loan:
- Refinance debt
- Bring student housing on the institution's Balance Sheet
- Renovate existing student housing and academic facilities
- 30-year fixed rate financing
West Virginia State University
May 2021 - $40,500,000
Program loan:
- Refinance debt
- Bring student housing on the institution's Balance Sheet
- 30-year fixed rate financing
Morehouse School of Medicine
December 2020 - $12,500,000
Program loan:
- Finance a portion to construct new Health & Wellness Center
- 25-year fixed rate financing
Morgan State University
October 2020 - $69,750,000
Program loan:
- Refinance debt
- Construct new public safety facility and dining facility
- Renovate existing student housing and academic facilities
- Finance a portion to construct new 670-bed student housing facility
- 30-year fixed rate financing
Meharry Medical College
August 2020 - $48,500,000
Program loan:
- Deferred campus maintenance
- Construct new living learning center and parking facility
- 20-year fixed rate for the deferred maintenance; 30-year fixed rate financing for the living Learning center
Xavier University of Louisiana
June 2020 - $100,000,000
Program loan:
- Construct a 500-bed dormitory and a mechanical substation
- Deferred maintenance related to building systems (HVAC, electrical and plumbing) and buildings that house such facilities
- 25-year fixed rate financing for the housing facility; 20-year fixed rate for the deferred maintenance
Johnson C. Smith University
December 2019 - $18,000,000
Program loan:
- Refinance debt
- 15-year fixed rate financing
The University of the Virgin Islands
November 2019 - $47,000,000
Program loan:
- Refinance debt
- Finance the cost of acquisition and create a Research and Technology Business Innovation Center
- Finance a portion to construct a new Research Center building and Medical Simulation Center building
- 30-year fixed rate financing
Florida Memorial University
October 2019 - $44,000,000
Program loan:
- Refinance debt
- 30-year fixed rate financing
Alabama Agricultural and Mechanical University
September 2019 - $70,000,000
Program loan:
- Construct new student center
- Renovations
- 30-year fixed rate financing
Florida Agricultural and Mechanical University
March 2019 - $125,700,000
Program loan:
- Construct new student housing facility
- Refinance debt
- 30-year fixed rate financing
Southern University at Baton Rouge
December 2018 - $27,000,000
Program loan:
- Refinance debt
- 21-year fixed rate financing
Morgan State University
November 2018 - $25,000,000
Program loan:
- Construct new public safety facility
- Refinance debt
- 30-year fixed rate financing
Morehouse College
June 2018 - $45,000,000
Program loan:
- Refinance debt
- Renovate existing student housing and academic facilities
- 20-year fixed rate financing
Alabama State University
March 2018 - $152,000,000
Program loan:
- Refinance debt
- 24-year fixed rate financing
Southern University at Baton Rouge
December 2017 - $27,000,000
Program loan:
- Refinance debt
- 21-year fixed rate financing
Morehouse School of Medicine
October 2017 - $27,500,000
Program loan:
- Renovate and expand medical academic facility
- Refinance debt
- 30-year fixed rate financing
Southern University at Baton Rouge
December 2017 - $27,000,000
Program loan
Southern University at Shreveport
September 2017 - $12,500,000
Program loan:
- Refinance debt
- 22-year fixed rate financing
Tuskegee University
August 2017 - $28,000,000
Program loan:
- Refinance debt
- 10-year fixed rate financing
Grambling State University
November 2016 - $100,000,000
Program loan:
- Refinance debt
- 30-year fixed rate financing
South Carolina State University
September 2016 - $36,600,000
Program loan:
- Refinance debt
- 19-year fixed rate financing
Jarvis Christian College
July 2016 - $25,000,000
Program loan:
- Construct new student housing facility
- Renovate existing student housing facilities
- Refinance debt
- 30-year fixed rate financing
Benedict College
June 2013 - $56,000,000
Program loan:
- Campus Center and other academic facilities
- 25-year average fixed rate financing
Claflin University
June 2013 - $30,000,000
Program loan:
- Refinance debt
- New student housing and renovations
- 25-year average fixed rate financing
Hampton University
May 2013 - $60,065,000
Program loan:
- Refinance debt
- 25-year fixed rate financing
Clark-Atlanta University
January 2013 - $14,025,000
Program loan:
- Refinance debt
- 8-year fixed rate financing
Stillman College
September 2012 - $40,000,000
Program loan:
- Refinance debt
- 25-year fixed rate financing
Texas Southern University
September 2012 - $60,000,000
Program loan:
- Construct new student housing
- 22-year fixed rate financing
Meharry Medical College
August 2012 - $60,000,000
Program loan:
- Construct a student center
- Build new student housing
- Renovate campus buildings and deferred maintenance
- 30-year fixed rate financing
LeMoyne Owen College
July 2012 - $13,450,000
Program loan:
- Finance the constructing of a new 336 bed suite-style living learning center
- 30-year fixed rate financing
Florida Memorial University
June 2012 - $16,060,000
Program loan:
- Refinance debt
- Construction of a new wellness education center
- Construction of a new science annex building
- 30-year fixed rate financing
Virginia Union University
April 2012 - $17,000,000
Program loan:
- Construction of a Living Learning Center
- 30-year fixed and variable rate financing
Huston Tillotson University
February 2012 - $17,850,000
Program loan:
- Renovation of two dormitories,
- Other campus capital improvements, and
- Refinance of current debt.
- 30-year fixed rate financing
Texas Southern University
September 2011 - $64,180,000
Program loan:
- Refinanced of outstanding indebtedness
- 25-year fixed rate financing
University of the Virgin Islands
June 2011 - $60,000,000
Program loan:
- Refinanced of outstanding indebtedness
- Financed new student housing facility
- Financed new laboratories, classrooms, and faculty offices
- Financed renovation campus facilities
- 30-year fixed rate financing
Wiley College
April 2011 - $24,400,000
Program loan:
- Refinanced of outstanding indebtedness
- Financed new student housing facility
- Financed new science building
- Financed renovation student union and campus facilities
- 30-year fixed rate financing
Wilberforce University
September 2010 - $24,552,000
Program loan:
- Refinancing of outstanding indebtedness
- 25-year fixed rate financing
Tuskegee University
July 2010 - $68,000,000
Program loan:
- Financed new student housing facility
- Financed new science building
- Financed renovation academic buildings and student housing facilities
- 30-year fixed rate financing
Bennett College for Women
June 2010 - $9,500,000
Program loan:
- Refinancing of outstanding indebtedness
- 20-year fixed rate and variable rate financing
Harris Stowe State University
April 2010 - $17,315,000
Program loan:
- Financed new student housing facility
- 30-year fixed rate financing
Lane College
March 2010 - $29,000,000
Program loan:
- Refinancing of outstanding indebtedness
- 20-year fixed rate and variable rate financing
Shaw University
February 2010 - $30,100,000
Program loan:
- Refinancing of outstanding indebtedness
- 20-year fixed rate financing
Florida Memorial University
September 2009 - $28,000,000
Program loan:
- Program financed new student housing facility
- Refinancing of outstanding indebtedness
- 30-year fixed rate financing
Bennett College for Women
September 2009 - $21,000,000
Program loan:
- financed new student housing, academic buildings, and renovations
- 30-year fixed rate and variable rate financing
Talladega College
September 2009 - $12,000,000
Program loan:
- Renovation of existing facilities
- Program financed new student housing facility
- Refinancing of outstanding indebtedness
- 30-year fixed rate financing
Southern University at New Orleans
June 2007 - $44,000,000
- Program financed new student housing facility
- A pledge of net revenues of the Southern University of New Orleans Student Housing System
- 30-year variable rate financing capped at 1 percent
Tougaloo College
June 2007 - $28,560,000
Program loan:
- Refinancing of outstanding indebtedness
- Renovation of existing facilities
- Modernization of campus facilities
- General obligation of the university, secured by mortgages, lien on all revenue
- 30-year variable rate financing capped at 1 percent
Xavier University
June 2007 - $165,000,000
Program loan:
- Refinancing of outstanding indebtedness
- Renovation of existing facilities
- Reimbursement to borrower for eligible remediation and rehabilitation outlays
- General obligation of the university, secured by mortgages, lien on all revenue, portion of endowment
- 30-year variable rate financing capped at 1 percent
Dillard University
June 2007 - $160,000,000
Program loan:
- Refinancing of outstanding indebtedness
- Renovation of existing facilities
- Construction of science and professional schools building
- Reimbursement to borrower for eligible remediation and rehabilitation outlays
- General obligation of the university, secured by mortgages, lien on all revenue, portion of endowment
- 30-year variable rate financing capped at 1 percent
Allen University
June 2007 - $19,000,000
- Program financed new student housing facility and residence hall improvements
- Secured by general obligation of the university on parity with existing creditors, net revenue pledge of entire student housing and a first mortgage on 5 buildings
- 30-year variable rate financing with a cap
Tuskegee University
May 2007 - $28,000,000
Program loan:
- Renovation of existing facilities
- Modernization of campus facilities
- Revenue of mortgaged facilities
- General obligation of the university, secured by mortgages, lien on all revenue
- 30-year fixed rate financing
Clark-Atlanta University
May 2007 - $20,000,000
Program loan:
- Renovation of existing facilities
- Modernization of campus facilities
- Secured by general obligation of the university, pledge of all revenue and mortgages
- 30-year fixed rate financing
Harris Stowe State University
June 2006 - $15,500,000
- Program financed new student housing facility
- Secured all student housing revenue
- 30-year fixed rate financing
South Carolina State University
June 2005 - $42,000,000
- Program financed new 780 bed student housing facility
- Also refinanced existing student housing revenue bonds
- Secured by net revenue pledge of entire student housing revenue system
- 30-year fixed rate financing
Miles College
July 2004 - $7,835,000
- Program financed new men's dormitory
- Financing structured in conjunction with bank loan on other college projects, requiring management of inter-creditor issues, including security and parity debt
- Secured by general obligation of the college, lien on revenues of the student housing facility and mortgage
- 30-year fixed rate financing
Tuskegee University
February 2004 - $12,056,000
- Refinanced taxable bond issue used to finance the university's Kellogg Conference Center
- Provided substantial debt service savings which created ability to finance an additional $1.2 million of renovation projects
- Secured by general obligation of the university and a mortgage on the conference center
- Structured as 23-year financing with $2 million deferred principal variable rate financing
Shaw University
January 2004 - $10,015,000
- First loan structured on a 100 percent variable rate basis
- Program loan:
- Refinanced bond issue which had a balloon provision
- Refinanced a note on a satellite campus
- Refinanced an existing Department of Education mortgage
- Provided small amount of new money
- Secured by general obligation of the university, pledge of all revenues and mortgages
- 20-year variable rate financing
Clark-Atlanta University
November 2003 - $23,905,000
- First financing to include a variable rate component
- Financing structured primarily to offer substantial debt service savings
- Secured by general obligation of the university, pledge of all revenue and mortgages
- Fixed rate loan portion structured consistent with term of refinanced bonds through 2015; variable rate loan portion amortizes through 2020
Livingstone College
November 2003 - $12,000,000 and November 2001 - $1,000,000
- Projects included:
- Refinancing ($7.00 million)
- Student housing renovation
- Administrative/classroom renovation
- General obligation of the college, secured by mortgage and lien on all revenues
- 17-year fixed rate on financing; 30 year fixed rate on new projects financing
Virginia Union University
April 2002 - $8,218,000
Loan included:
- Refinancing
- HVAC upgrades
- Building Renovations
- Loan secured by general obligation of the university, a first lien on revenues and a mortgage
- 30-year fixed rate financing
Tuskegee University
March 2002 - $23,875,000
Provided financing for:
- Campus infrastructure projects
- Residence hall improvements
- Loan secured by general obligation of the university, a first lien on certain student housing revenues and mortgages
- 30-year fixed rate financing
Bennett College
July 2001 - $8,700,000
- First financing completed by Commerce Capital Access Program Corporation
- Project included:
- Refinancing
- Storm drainage
- Network/telephone upgrades
- Roof repair
- General obligation of the college, secured by mortgage and lien on all revenue
- 30-year fixed rate financing
Barber-Scotia College
December 2000 - $7,000,000
- Last financing completed by Eddie Mac
- Financed renovation of Faith Hall, a 23,000 square foot student housing facility
- General obligation of the college, secured by a mortgage and lien on all revenue
- 30-year fixed rate financing
Lincoln University
October 1999 - $13,850,000
- Loan retired through a refinancing by Aaa/AAinsured tax-exempt bond issue in 2004
- Project included:
- Refinancing and renovation of the university's Urban Center in Philadelphia
- Deferred campus maintenance and computer software and hardware upgrades
- General obligation of the university, secured by a mortgage on the Urban Center
- 25-year fixed rate financing for the Urban Center; 15-year fixed rate for the deferred maintenance
Bethune-Cookman College
May 1999 - $15,500,000
Project included:
- Student center
- Auditorium
- Mass communications building
- Loan secured by general obligation of the college, lien on all revenues and a mortgage
- 30-year fixed rate financing
Tougaloo College
May 1999 - $8,200,000
Project included:
- Four new student housing facilities
- Furniture purchase
- Refinancing of lease for HVAC system
- Loan secured by general obligation of the college, pledge of net revenues of the financed dormitories and a mortgage
- 10-year fixed rate refinancing
- 30-year fixed rate new project financing
Bethune-Cookman College
July 1997 - $4,795,000
- Provided financing for a new 200 bed student housing facility
- Loan secured by general obligation of the college, pledge of net revenues and covenant to maintain minimum level of unrestricted net assets equal to 150% of debt
- 30-year fixed rate financing
West Virginia State College
September 1996 - $3,500,000
- First HBCU Program loan
- Program financed renovation of student housing
- Loan secured by pledge of net revenues and negative pledge on the student housing system
- 30-year fixed rate financing