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 $994 million ($361 million attributed to public HBCUs and $633 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 2023, Congress provided $20,150 million in subsidy to make $752 million in new loans.
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