A group of alumni and community members gathered last week to protest a $7 million loan agreement between Saint Augustine’s University and a local venture capital firm. WUNCa North Carolina public radio station reported.
Protesters claim Gothic Ventures’ loan is predatory and endangers the historically black university; The interest rate is 24 percent, plus a loan administration fee of 2 percent. Additionally, the agreement was secured by a deed of trust that puts the university’s real estate holdings at risk if Saint Augustine’s is unable to repay the loan.
University management celebrated the loan as a reprieve from financial difficulties and an opportunity to get back on track. Board of Trustees Chairman Brian Boulware said in a Announced in August that the partnership with Gothic Ventures “will be critical to our path to excellence.”
“This funding secures our immediate needs while allowing us to execute on our long-term vision,” Boulware said.
But some members of the campus community don’t think so, WUNC reported. Among the protesters who gathered to talk about the loan were representatives of the Save SAU coalition, a group of alumni and others who have called for university trustees resign on tax issues, and the Center for Responsible Lending, a research and advocacy organization dedicated to curbing predatory lending.
“If Saint Augustine’s is unable to repay Gothic Ventures for any reason, the land will be lost and the university as we know it will cease to exist,” alum Clarence Laney said at the protest.
Saint Augustine’s had some financial problems. Officials sent students home and switched to distance learning in the middle of the spring semester amid accreditation battles; the university Lost accreditation in December 2023 and filed an appeal the previous February to regain it this summer. The university also has struggled to pay the costs and was hit by one Multi-million dollar tax lien from the Internal Revenue Service for unpaid taxes this year.
University leaders say the loan is intended to fund an external audit, settle outstanding payments to employees and cover other operating costs.
“This loan represents a significant affirmation of our commitment to our students and staff,” Saint Augustine Interim President Marcus H. Burgess said in announcing the agreement.
Here are two PAA-related questions for the provided text:
## World-Today-News Exclusive Interview: Saint Augustine’s University Loan Controversy
**Introduction**
Welcome to World-Today-News. Today, we delve into the heated debate surrounding a $7 million loan agreement between Saint Augustine’s University (SAU) and Gothic Ventures, a local venture capital firm. We’re joined by two distinguished guests: [Guest 1 Name], a member of the Save SAU coalition, and [Guest 2 Name], a financial expert with experience in higher education financing.
**Part 1: The Loan Agreement: Rescue or Risk?**
**Interviewer:** Thank you both for joining us. Let’s start by unpacking the loan agreement itself. [Guest 1], the Save SAU coalition has been vocal in its opposition to this loan. Can you explain the central concerns driving your objection?
**Guest 1:**
**Interviewer:** [Guest 2], from a financial perspective, what are the key features of this loan agreement that raise concerns, particularly the 24% interest rate and the potential for collateral seizure?
**Guest 2:**
**Interviewer:** SAU University leadership maintains that the loan is crucial for addressing immediate needs and ensuring the university’s future. [Guest 1], how do you respond to this argument, especially considering the university’s recent financial struggles?
**Guest 1:**
**Part 2: Weighing the Benefits and Risks**
**Interviewer:** [Guest 2], some argue that the loan, despite its high interest rate, provides a lifeline for a university facing significant challenges. What are the potential consequences – both positive and negative – of SAU accepting these terms?
**Guest 2:**
**Interviewer:** [Guest 1], the loan agreement cites funding for an external audit, settling outstanding employee payments, and covering operating costs. How do you perceive these intended uses of the funds?
**Guest 1:**
**Part 3: The Larger Context: A History of Financial Struggle**
**Interviewer:** This loan agreement arrives in the context of SAU’s ongoing financial difficulties, including accreditation issues, unpaid taxes, and a significant tax lien from the IRS. [Guest 2], how common are these types of financial woes in Historically Black Colleges and Universities (HBCUs)?
**Guest 2:**
**Interviewer:** [Guest 1], what systemic factors, in your view, contribute to these ongoing challenges faced by HBCUs?
**Guest 1:**
**Part 4: The Future of SAU: Path Forward**
**Interviewer:** Looking ahead, what are your hopes for the future of Saint Augustine’s University?
**Guest 1 & Guest 2:**
**Interviewer:** Thank you both for sharing your valuable insights. This conversation highlights the complex financial challenges faced by SAU and the importance of responsible lending practices, particularly when dealing with institutions serving historically underserved communities.
**Closing:** We encourage our audience to stay informed about the developments at SAU and engage in constructive dialog surrounding its future.
For further information on this topic, please visit the following resources:
* [https://www.wunc.org/education/2024-11-20/saint-augustines-university-rally-against-multimillion-dollar-loan-agreement](https://www.wunc.org/education/2024-11-20/saint-augustines-university-rally-against-multimillion-dollar-loan-agreement)
* [https://www.insidehighered.com/news/governance/trustees-regents/2024/06/26/should-shaw-and-saint-augustines-merge](https://www.insidehighered.com/news/governance/trustees-regents/2024/06/26/should-shaw-and-saint-augustines-merge)
* [Insert additional relevant resources]
