Saint Augustine’s University: Despite financial and accreditation struggles, leaders join forces in push to save HBCU

RALEIGH, N.C. (WTVD) — A group of leaders who want to save Saint Augustine’s University held a press conference Wednesday.

The group includes religious leaders, social justice advocates and SAU alumni. Together, they support SAU and vow to work to find a resolution to the school’s financial challenges.

A variety of speakers stood up Wednesday to decry the loan that Saint Augustine’s University received to help the struggling HBCU begin its fall semester.

The speakers revealed paperwork showing the university entered a financial agreement in May with Gothic Ventures LLP for a $7 million loan with an interest rate of 24% plus a 2% loan management fee. The university was also charged a $75,000 due diligence and documentation fee.

The speakers explained why they considered the loan predatory.

They said their main concern was that the university would not be able to repay the loan and therefore would lose the land where the university sits, due to that land being put up as collateral.

The group said it had six demands for Gothic Ventures, which include modifying or eliminating the loan altogether.

ABC11’s Cindy Bae was at the press conference. She’ll have a full story tonight on ABC11 at 5 p.m.

Saint Augustine’s University has had a tumultuous semester — including a delayed opening, missed payroll checks, accreditation snags, merger talks, lawsuits, suspensions, homecoming cancellation and more.

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