DAYTONA BEACH, Fla. — Bethune-Cookman University officials celebrated a big loan that board members say will help the school move on from a financial controversy.
What You Need To Know
- Bethune-Cookman University got a $108 million loan from the U.S. Education Dept.
- The money will be used on deferred maintenance, also to settle the dorm deal
- Had the dorm deal not been resolved, it would have cost the school over $300 million
The Board of Trustees at B-CU announced Tuesday the school received a $108 million loan from the U.S. Education Department's HBCU loan program.
That loan will help them catch up on deferred maintenance. The money will also settle an $85 million dorm deal that has plagued the university for years. Had it not been resolved, it would have cost B-CU over $300 million. Board members shared that changes have been made to make sure they don’t end up in this financial situation again.
“This board takes its fiduciary duties seriously," said B-CU Board Chairman Belvin Perry, Jr. "We set policy, but we make sure policy is carried out and that was lacking under the prior board.”
Ending the dorm deal also resolves the technical default associated with B-CU’s bond rating. Moving forward— board members shared they will now focus on retooling the university’s academic enterprise.
The HBCU loan program is a federal program to help historically Black colleges and universities repair or upgrade facilities.