The Department has statutory authority to guarantee bonds for up to $1.1 billion (no more than $733,333,333 must be used for private HBCUs and no more than $366,666,667 will be used for public HBCUs). Currently, the HBCU Capital Financing Program's outstanding balance is about $1.056 billion ($246 million attributed to public HBCUs and $810 million attributed to private HBCUs). The outstanding interest and principal cannot exceed $1.1 billion. If the Congress provides authority, in an appropriations bill, authority to exceed the statutory limit and to make loans to public and private HBCUs without considering if an HBCU is public or private.
The remaining amount of funds available to lend in any year is determined by annual Congressional appropriations and that amount can vary. For Fiscal Year, 2012, the Congress provided for $367 million to make new loans without considering if an HBCU is public or private.
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