Talladega College is a private four-year institution founded in 1867 by the descendants of slaves. A Historically Black College (HBCU) in rural Alabama, Talladega hosts 800 students across a range of liberal arts majors. This financial partnership between Reinvestment Fund and the College meets a critical need of the school, as it lacks sufficient student housing and is currently paying more than $300,000 per year to house students in local hotels.
The project is composed of two parts: a 203-bed student housing building and a student life center including an arena, meeting space, health facility, and food service. Due to increased enrollment, there is an urgent need for the 43,000-square foot residence hall. The student center will support student and recreational needs not presently available in Talladega and will provide the College with a location for numerous activities such as sporting events, banquets, graduations, and other community needs.
Talladega College serves as an exceptional beneficiary of Reinvestment Fund’s loan, as it explicitly seeks to serve a low-income population. 98% of students are Pell Grant eligible and 85% are first generation college students. Talladega also represents an opportunity to serve both a rural and Southeastern community—priorities for Reinvestment Fund. Additionally, the food service and retail component of the project will increase food access in what is a USDA designated low-income, low-access area.
Reinvestment Fund is providing Talladega College with a leverage source bridge loan as part of New Markets Tax Credit transaction. The bulk of the financing for the leverage loan is coming from USDA Rural Development. PNC Bank and United Bancorporation of Alabama, Inc. are also providing financing. The $20 million NMTC allocation is provided by three CDEs: Southern Community Capital, United Fund Advisors/National Community Fund and United Bancorporation of Alabama. PNC Bank is also the investor in the transaction.
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