Saint Augustine's University enters credit agreement with Gothic Ventures for upcoming semester

RALEIGH, N.C. (WTVD) -- Saint Augustine's University (SAU) said Friday that it has entered into a credit agreement with a Durham-based capital provider.

The financially-strapped HBCU called it a "big win" that will allow the university to "successfully commence the fall 2024 academic semester."

The agreement with Gothic Ventures will enable the university to receive up to $30 million. The initial allocation is a $7 million term loan.

SAU said the agreement was secured by a deed of trust on the university's real estate holdings.

"The partnership with Gothic Ventures marks a pivotal moment for SAU as it embarks on a multi-year strategic plan to stabilize and grow the University," said SAU Board of Trustees Chairman Brian Boulware. "This funding secures our immediate needs while allowing us to implement our long-term vision. We believe our partnership with Gothic Ventures will be crucial to our journey toward excellence."

The school previously announced that the fall semester was being delayed because of needed building repairs from damage caused by Tropical Storm Debby. SAU also said that it was waiting on "finalizing major funding that will allow us to pay overdue student refunds and staff salaries from last semester."

That funding has arrived.

SAU said it plans to use the money to support the completion of an external audit, settle outstanding employee salaries, refund student credit balances, and cover essential operational expenses.

"We are excited to partner with Saint Augustine's University during this pivotal time," said Kip Johnson, Gothic Ventures Founder and Managing General Partner. "Our belief in the transformative power of education aligns with the University's historic mission, and we are confident that this collaboration will lead to future successes for the institution and its community."

Less than a month ago on July 22, the university regained its accreditation after losing it during the spring 2024 semester. SAU has been plagued with financial issues including not paying academic and support staff, which includes the cleaning staff.