ST. AUG WINS COURT
INJUNCTION, WILL OPEN
FOR FALL SEMESTER, GETS
NEW BOARD CHAIR, VICE CHAIR
By Cash Michaels
Contributing writer
Finally, some good news to report about beleaguered St. Augustine’s University (SAU), which has been facing severe financial and academic setbacks of late.
Yes, the historically black Episcopalian university in Raleigh will conduct classes for the 2025 fall semester starting Sept. 2nd, although virtually online, thanks to a federal district court ruling Friday granting SAU a preliminary injunction that was filed Thursday against the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) to keep its academic accreditation, thus allowing SAU to operate while it continues its legal battle against SACSCOC.
“The injunction ensures that SAU’s accreditation is safeguarded during this process, meaning students can enroll, receive financial aid, and continue their studies with complete confidence that their degrees will be accredited while the case is underway,” the school’s press release Friday stated.
SAU sued SACSCOC after the accrediting commission voted to strip the small, private university in arbitration of its accreditation and membership over alleged fiscal mismanagement a month ago.
In recent years, SAU has seen its normal 1500 student enrollment drop dramatically to just 200 students, with just 25 graduating last May.
On Friday, Dr. Marcus H. Burgess, interim president of SAU, issued a grateful statement.
“This is a tremendous win for Saint Augustine’s University and, most importantly, for our students. Thanks to our supporters, we will open our (virtual) doors on Sept. 2 as an accredited institution, just as we promised. We have said all along that we will stop at nothing to maintain our accreditation and continue serving our scholars — and we meant it.”
Dr. Burgess continued in the press release, ”Students can enroll, receive financial aid, and continue their studies with complete confidence that their degrees will be accredited while the case is underway.”
“We are deeply thankful to every alum, donor and friend who stepped up to make this possible. Your support has been a beacon of hope for SAU during this challenging time.”
Accreditation is important to colleges and universities because it allows students to receive federal financial assistance. In SAU’s case, holding on to its accreditation while it fights SACSCOC in court means it has time to build its legal case, while exploring other accrediting options in case it ultimately loses.
But winning the federal preliminary court injunction wasn’t the only good news SAU shared last Friday.
Its trustees board has now elected a new board chairman - Sophie L. Gibson from Atlanta. The first woman ever to lead the SAU board will now do so in establishing policy at the school, replacing controversial former chair Brian Boulware.
“It has been a privilege to serve as chair of this historic institution during a time of great challenge and transformation,” Boulware said in a statement “I am proud of the work we have accomplished together and confident in the leadership of Chair Gibson and the board to guide SAU into a bright future.”
Boulware had been the target of a previous lawsuit against the SAU Board by alumni.
Chairwoman Gibson, who is joined in board leadership by new Vice Chairwoman V. Lynette Mitchell, Class of ’89 from Williamstown New Jersey, joined Interim Pres. Burgess in lauding the federal court decision.
“This injunction is not just a legal reprieve; it is a testament to the power of the Falcon community, Gibson said. “It allows us to continue educating our students without interruption as we vigorously defend SAU’s future in court, and it shows that we soar higher when we soar together..”
Gibson also thanked SAU alumni for their contributions to the school’s legal fund, thanking in particular the SAU National Alumni Association, which thus far donated $100,000 to the cause.
“Their commitment ensured we had the resources to take this crucial legal step to protect our students and our mission.”
Reportedly, SAU expects to spend at leas $1 million in legal fees, which include a $350,000 legal retainer.
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TRUMP ADMINISTRATION FREEZES
FEDERAL LOAN FUNDING FOR
MECHANICS AND FARMERS BANK
By Cash Michaels
Contributing writer
Mechanics and Farmers Bank (M&F Bank), the Durham headquartered 118 year-old black banking institution, and the nation’s second oldest black bank, with branches in Greensboro, Charlotte, Raleigh, Winston-Salem and Durham, is reportedly now the latest victim of the Trump Administration’s war on diversity.
According to published reports, the U.S. Office of Management and Budget (OMB), by order of Trump appointee, Director Russell Voight, has not released $324 million in fiscal year 2025 funding by Congress to CDFIs (Community Development Financial Institutions).
Since the 1990s, that funding from Congress and OMB has provided grants to thousands of CDFIs across the country, providing at least 60% of their loans to businesses in low-income rural and urban communities, and has enjoyed bi-partisan support in Congress.
This year, at least 26 CDFIs in North Carolina qualified for funding, including Mechanics and Farmers Bank. But apparently, no OMB funding through the Treasury Dept. is forthcoming, and OMB Director Voight is not responding to congressional inquiries as to when it will for this year..
Furthermore, it’s being reported by The News and Observer newspaper of Raleigh that “The White House’s 2026 discretionary budget proposal removes $291 million in CDFI Fund grants and instead creates a $100 million grant program exclusively for rural communities, adding that “Past awards may have made race a determinant of access to loan programs,” OMB wrote in its proposal.”
Last year, while other financial institutions in North Carolina received millions from the federal CDFI fund, M&F Bank received a modest $280,370. That amount reportedly helped the bank to generate ten times that amount in loans to the community.
But now, even that modest sum from the CDFI Fund is not forthcoming.
M&F Bank CEO James Sills told the N&O that losing the CDFI funding “…would be terrible. That is one of the best programs in the federal government system, because they’re leveraging about $324 million to about $300 (billion) to $400 billion in funding for communities all across the United States. We’re still going to do what we’ve been doing for 118 years, but (CDFI) does help us continue to do the lending to serve the communities that we serve.”
Sills says that he’s been to Washington, D.C. three times this year so far to lobby the NC congressional delegation and their staffers.
“They are, generally speaking, supportive of the CDFI Fund. But like I said, there’s two facets to this. You have the congressional facet, but you also have the administration facet. And one is pushing for one thing, and one is pushing to kind of reduce the fund and to reduce any future funding. Take race out of it “
Sill’s added that M&F Bank is in business to help small businesses of all colors, and by doing so, it helps creates much needed jobs in the community. So denying CDFI funding does little to help that cause.
He adds that M&F Bank is now facing a lot of competition from larger banks in its markets, so that adds to the challenge of providing competitive services.
“The second biggest challenge for us is talent, hiring and retaining top talent. And then the third thing is just keeping pace with technology. Those large scale banks have significant technology budgets. We’ve made a significant investment in [new technologies] to make sure we are staying abreast with how to be able to generate and close more loans, just like large scale banks.
Sills added that as a community bank, it can afford to take the time to better work with loan applicants to help them better qualify for a loan. Larger banks can't do that, Sills said.
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