Dean’s List: St. Aug’s gets $30 million line of credit. How leaders say it will help.
Last academic year was a turbulent one for St. Augustine’s University in Raleigh, as the private historically Black college faced threats to its accreditation and a list of ongoing financial issues.
Now, though, the university says things could be looking up.
The university last month received the news that its accreditation agency had reversed a decision to strip the university of its accreditation and membership with the agency. And Friday, the university announced it has been approved for a multi-million dollar line of credit, which “will enhance the university’s capacity to successfully commence the fall 2024 academic semester” — albeit two weeks late.
So, how will the university use the money? And which group is providing the money?
Welcome to Dean’s List, a roundup of higher education news in the Triangle and across North Carolina from The News & Observer and myself, Korie Dean.
This week’s edition includes more information about St. Aug’s new loan and credit approval, UNC-Chapel Hill’s rules on protests, a new location for Wake Technical Community College and more.
St. Aug’s gets $30 million line of credit
Under St. Aug’s agreement with Durham-based Gothic Ventures, “a multi-class, multi-sector capital provider,” the university has been approved for a line of credit of up to $30 million. The initial allocation, funded at the closing of the deal between the organizations, is for a loan of $7 million, leaving the possibility for the university to request more money in the future.
The agreement is secured by a deed of trust on St. Aug’s real estate holdings, a news release said. Interim St. Aug’s President Marcus Burgess has previously cited the university’s land as one of its most valuable assets.
“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,” St. Aug’s Board of Trustees Chair Brian Boulware said in the news release. “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 university plans to use the initial $7 million allocation to “address critical short-term cash flow requirements,” including funding an external audit of the university, refunding student credit balances and settling missed and delayed employee payments. The university on several occasions within the past year has been unable to pay employees on time, which Burgess has attributed to a lack of available funds.
“To ensure a smooth transition, the university’s external payroll agent will process all outstanding payroll sequentially,” a news release said.
Burgess said the loan and line of credit from Gothic represent “a significant affirmation of our commitment to our students and staff.”
“We are grateful for the belief that Gothic Ventures has placed in our vision, allowing us to focus on enhancing the academic experience while showcasing our resilience in the face of adversity,” Burgess said.
Kip Johnson, founder and managing general partner of Gothic Ventures, said in the release the organization was excited to support the university “during this pivotal time.”
“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,” Johnson said.
Classes will begin at St. Aug’s for the fall semester on Sept. 3. That’s two weeks later than initially planned, with Burgess citing ongoing funding and maintenance issues and some damage caused by Tropical Storm Debby.
Former Sen. Burr joins Duke faculty
More than a year after he left the U.S. Senate, former North Carolina Republican Sen. Richard Burr is joining the faculty at Duke University’s Sanford School of Public Policy.
Burr will be a Polis Distinguished Fellow, part of a program that “brings accomplished political practitioners, public servants, and organizers to campus to engage with our community and to dedicate some portion of their time to a project that promises an innovative solution to a problem of contemporary politics and that involves students in the process.”
During his term as a fellow, Burr will play an active role in the university’s new “Bridging the Divide” initiative, which aims to foster dialogue between members of groups with differing political and ideological views.
The first event of the initiative will be Sept. 9, and will feature a conversation between Burr and Duke Provost Alec Gallimore.
“Serving as a Polis Distinguished Fellow is an exciting opportunity to connect with the next generation of leaders, share with them the experiences and opportunities I had during my service in the United States Congress, and help promote the importance of participation in our government to solve problems for the American people,” Burr said in an announcement.
Wake Tech opens new location
The start of the new academic year brought a new campus to the Triangle, with the opening of Wake Technical Community College’s East campus in Wendell.
The campus welcomed students to their classes for the first time Thursday, which marked the first day of classes for all Wake Tech locations. Wake Tech East will offer the following degrees:
Associate in Arts
Associate in Science
Associate in Engineering
AAS, Emergency Medical Science
More than 25,700 students are enrolled across Wake Tech this semester, marking the highest fall-semester enrollment in the college’s history. The number includes more than 8,500 new students, marking another record.
Higher education news I’m reading
- In his 17-month tenure as president of the University of Florida, former Republican Sen. Ben Sasse “more than tripled his office’s spending, directing millions in university funds into secretive consulting contracts and high-paying positions for his GOP allies,” the Independent Florida Alligator reports.
- Can college administrators “discipline [their] way out” of protests over the ongoing Israel-Hamas war? As the fall semester begins, Inside Higher Ed takes a look at how universities have handled the demonstrations, and how they might change their approaches.
Sign up for The N&O’s higher ed newsletter
That’s all for this roundup of North Carolina higher education news. I hope you’ll stay tuned for more.
Like what you read here and want to be on our mailing list? Have suggestions for what kind of content you’d like to see featured in the future? Let us know by filling out the form below:
