Overview
- Internal loans may be approved for major equipment purchases, construction projects, or other approved uses.
- Internal loans are initiated through the Treasury Office using the Internal Loan Request Form (Excel) .
- Internal loans require approval by the Vice President for Finance and Administration, Executive Vice President and Provost, and President.
- The Treasury Office will create the loan amortization schedules and maintain fully-executed request forms.
Terms
- The loan term cannot exceed the useful life of the asset being financed or any associated tax-exempt financing period (whichever is less).
- The term for a gift bridge loan should coincide with the gift agreement/payment schedule, not to exceed five years.
- Departments will be charged principal and interest quarterly based on the amortization schedules. Entries will be recorded by the Treasury Office.
- Early payoff is permitted. Interest will be charged on the outstanding loan balance until the loan is paid in full.
Interest Rates
- Interest rates are variable over the life of the loan but will be fixed for each fiscal year.
- Interest rates are based on the blended cost of capital.
- If the published interest rate changes, revised amortization schedules will be prepared and distributed for all outstanding loans.