Service Area: Institutional Service
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 historically black colleges and universities (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 $1.1 billion. However, the program can exceed $1.1 billion if Congress provides for the program to do so in an appropriation bill.
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.
Types of Projects
The loan proceeds of the HBCU Capital Financing Program can be used for repair, renovation or, in exceptional circumstances, the construction or acquisition of --
- Any classroom facility, library, laboratory facility, dormitory (including dining facilities) or other facility customarily used by colleges and universities for instructional or research purposes or for housing students, faculty, and staff;
- A facility for the administration of an educational program, or a student center or student union, except that not more than five percent of the loan proceeds provided under this part may be used for the facility, center, or union if the facility, center or union is owned, leased, managed, or operated by a private business that, in return for such use, makes a payment to the eligible institution;
- Instructional equipment technology, research instrumentation, and any capital equipment or fixture related to facilities described in subparagraph (A);
- A maintenance, storage, or utility facility that is essential to the operation of a facility, a library, a dormitory, equipment, instrumentation, a fixture, real property or an interest therein, described in this paragraph;
- A facility designed to provide primarily outpatient health care for students or faculty;
- Physical infrastructure essential to support the projects authorized under this paragraph, including roads, sewer and drainage systems, and water, power, lighting, telecommunications, and other utilities;
- Any other facility, equipment, or fixture which is essential to the maintaining of accreditation of the member institution by an accrediting agency or association recognized by the Secretary under Subpart 2 of Part H of Title IV.