Reports: St. Augustine’s accepts new loan in exchange for ousting trustees
AI-generated summary reviewed by our newsroom.
- Self-Help Venture Fund assumed at least $7M of SAU’s Gothic Ventures debt.
- Deal removed trustees Brian Boulware and James Perry from SAU’s board.
- Move may shield SAU from 2024 Gothic loan terms criticized as predatory.
In exchange for a prominent nonprofit lender taking over millions of dollars in debt, St. Augustine’s University, the Raleigh HBCU, agreed to oust key members of its leadership team, according to news reports.
The deal, which was first reported last week by WRAL, could protect SAU from the conditions of a separate loan it entered into with Gothic Ventures in 2024. Critics called that agreement “predatory” for its 24% interest rate and usage of the university’s on- and off-campus properties as collateral.
Now, with a new loan from Self-Help Venture Fund, the lender will take on at least $7 million of the debt that SAU owed to Gothic, WRAL reported.
The News & Observer reached out to representatives for SAU and Self-Help for comment, but did not hear back.
As part of Self-Help’s deal with the university, trustees Brian Boulware and James Perry were removed, according to WRAL. Both men have been criticized in the past for SAU’s ongoing financial issues, Indy Week reported.
Perry told WRAL his term on the board had expired, while Boulware said last week he hadn’t been informed about his removal.
The news comes as SAU has faced a battle to keep its accreditation amid a string of financial and governance struggles.
