Historically Black Colleges and Universities (HBCUs) are engines of opportunity, producing generations of leaders and scholars despite facing systemic, long-term underfunding and structural barriers. For over a century, they have struggled with unfair state funding allocations, unstable federal funds, and limited access to private capital. Yet, HBCUs persist, continuing to educate Black students in culturally empowering ways. Building on this commitment to supporting Black education, the Reinvestment Fund (RF) is one of the few Community Development Financial Institutions (CDFIs) actively investing in HBCUs and their future. Since 2018, RF has loaned nearly $50 million to support the financial health of HBCUs and fund essential capital projects.
Several HBCUs have benefited from critical improvements due to RF’s targeted investments, including Fisk University, Edward Waters University, and Talladega College. Fisk University received two CDFI Bond Guarantee Program loans to refinance debt, retire liabilities, and secure financial stability, allowing the Nashville-based university to grow enrollment by over 1,000 students in the 2023-2024 school year. This stability also positioned Fisk to receive additional federal financing for a new Science Center and Student Life Center—developments that will further strengthen the institution’s long-term sustainability.
Edward Waters University used its CDFI Bond Guarantee Loan for similar refinancing efforts, reducing liabilities and improving cash flow. The result? An enrollment increase of 1,100 students in the same academic year. Meanwhile, Talladega College secured a bridge loan to construct much-needed student housing and a student life center, eliminating the costly practice of housing students in local hotels. The new facilities support students and serve the broader community, providing space for events and engagement.
In addition to stabilizing individual institutions, RF has expanded its approach to include broader support mechanisms through the HBCU Brilliance Initiative. The Initiative builds upon previous work by including technical assistance, grants, and strategic convenings. The Initiative also ensures that HBCUs have the knowledge and tools to implement best practices, execute sophisticated financial strategies, and achieve long-term sustainability. The first cohort of institutions will receive $40,000 in grants for transformative projects that benefit their campuses and surrounding communities. Prioritizing institutions with high Pell Grant enrollment, lower endowments, and limited access to traditional funding, the Initiative seeks to direct resources where they are most needed.
To gain deeper insight into the Reinvestment Fund’s origins and impact, I talked with the Senior Director for the HBCU Brilliance Initiative, Damien Wilson, and Christina Alexis, a program director with the Initiative. Wilson shared that RF “was founded on the belief that increasing access to capital could significantly change the future of these institutions.” He added, “Since 2018, the Reinvestment Fund has invested in schools that would typically be ineligible due to lending practices that overlook the historical challenges these underserved and underfunded institutions face. However, RF envisions these investments as the first step in a transformative impact initiative, now expanded to include technical assistance.”
To better understand what RF expects from participating institutions, I turned to Alexis, who outlined the selection criteria and program goals. She stated, “Selected institutions must demonstrate strong leadership alignment, with commitment from the Board of Trustees and executive leadership, and show readiness to execute their proposed project, including a feasible plan and alignment with the institution’s mission and community needs. The cohort will consist of HBCUs positioned to maximize impact and benefit from these resources.” She added, “The vision of the HBCU Brilliance Initiative is to invest in these institutions not only by providing essential financial support but also by addressing the root causes of their sustainability challenges.”
Curious about how RF’s efforts fit into the larger landscape of higher education funding, I asked Wilson about the role of CDFIs more generally in this work. According to Wilson, “CDFIs have a unique opportunity to support communities in ways that traditional financial institutions historically have not. HBCUs, while national in scope, are local community members at their core. They are essential to the fabric of their cities and regions.” He expanded, “Our hope is that other CDFIs will see the amazing opportunities that HBCUs provide and the unmatched potential HBCUs have to offer when given the proper support, resources, and respect.”
As Wilson underscored, HBCUs are vital to their communities, making their financial stability even more critical. For too long, conversations about higher education investment have overlooked HBCUs. RF’s investments challenge that neglect, offering a model for how targeted funding and strategic partnerships can create sustainable change. From Wilson’s perspective, “The hope is that others—foundations, private investors, and policymakers—will take note and follow suit. The future of HBCUs, and by extension, the communities they serve, depends on it.”