Who May Apply: (by category) Institutions of Higher Education (IHEs)
Who May Apply: (specifically) Only eligible institutions designated by the Secretary of Education as Historically Black Colleges and Universities (HBCUs) are eligible to borrow from this program. An eligible institution is a Title III Part B institution as defined in Section 322(2) of the Higher Education Act of 1965 (HEA).
Section 322(a) of the Higher Education Act of 1965, as amended (HEA), defines an HBCU as "... any historically black college or university that was established prior to 1964, whose principal mission was, and is, the education of Black Americans, and that is accredited by a nationally recognized accrediting agency or association determined by the Secretary to be a reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation...."
It is important to note that an institution does not receive a loan by only being a HBCU. The HBCU must meet credit criteria such as showing the ability to repay all of its debts based on financial analysis, providing enough collateral for the loan it seeks, and meeting loan and bond covenants.