NEWBERRY, S.C. — Newberry College is refinancing a $12-million dollar loan with USDA backing.
In this process, they are combining what used to be four separate loans, adding eight years to pay it off, and it's now at an interest rate about 25 points lower.
This mean they'll have extra money for future projects on campus.
"We take that program and we restructure all of our debt in such a way as to help improve cash flow," said David Sayers, chief financial officer of Newberry College. "The one bank takes out the other bank and the USDA guaranteed both of the banks in case there was ever a default, so it allows the banks to make a loan in a rural area that they might not normally do."
This matters because small rural colleges need a revenue source to propel their programs, services and infrastructure.
"The USDA program is designed to help so that the non-metro areas aren't just completely ignored by banks," Sayers said.
As for how they'll be using this extra re-financed loan money, it'll go to pay the bills and debt in fuller amounts and help with construction of the new nursing building, new residence hall and new stadium expansion happening this spring of 2022.
Other local USDA loans and grants are going to Calhoun, Clarendon and Orangeburg counties, as well as the towns of Holly Hill, Santee and Summerton, and Orangeburg county schools.