Venture Capital Firm Gives NC HBCU Loan With Massive Interest [Video]

A North Carolina HBCU just received a multi-million dollar loan that will help it keep its doors open. But some are concerned that the help, while needed, comes at much too high a cost.

Saint Augustine’s University (SAU) in Raleigh, North Carolina, has struggled with financial issues in recent years. But recently, they have taken some bold steps to get back on track.

In November, the school announced it had cut 50 percent of its workforce in an effort to move towards “financial stability.” They’ve also turned to banks and venture capital firms for help.

Before the start of the 2024-2025 school year, SAU entered an agreement with Durham-based capital provider Gothic Ventures, LLP. The deal would provide the school with up to $30 million in funds to help make repairs to campus buildings damaged by Tropical Storm Debby and pay outstanding student refunds and staff salaries from the previous semester, according …