Central Bank Loans

General Guidelines

All loan requests must be $100,000 or greater.

College/units seeking internal loan financing should provide:

  • the purpose of the loan and its relationship to the University’s mission, vision and strategic plan
  • the loan amount as compared to the total cost of the equipment or capital project
  • evidence of their ability to pay debt service

In addition, the college/unit should consider current funding opportunities such as operations, reserves, and carryforwards prior to requesting an internal loan. College/units should work with their director/business officer and seek approval from their dean/unit head before submitting an application request form to the Treasurer’s Office.

Internal loans may be used to finance capital projects and major equipment purchases where the college/unit has the ability to pay over a longer term versus immediately. Final approval for internal loans will be granted by the University’s Chief Financial Officer after review by the Treasurer’s Office. Once approved, an internal bank loan agreement (MOU) will be executed between the Treasurer’s Office and the department/unit to memorialize the loan.

There are three financial vehicles that can be utilized for capital projects and/or equipment purchases. Before applying, please review the overview of each of these financial vehicles.


Local Funds
Purpose – To fund investments that either do not qualify for internal loan or bridge financing.
Restrictions – None. Funds should be used in accordance with the unit’s mission.
Term – N/A
Rate – N/A

Bridge Financing
Purpose – To fund capital projects with donor commitments that are to be received over an extended period.
Restrictions – Bridge loan funding must be deployed within 12 months.
Term – The bridge loan has a 5-year term on it.
Rate – Federal funds rate at time of request.

Internal Loan
Purpose – To finance capital projects or equipment that do not qualify for bridge financing and/or are too expensive for units to leverage reserves/carryforwards.
Restrictions – The Internal Loan program is subject to a continued positive cash position and positive credit ratings in accordance with President and Board directives.
Term – 1-20 years.
Rate – Federal funds rate at time of request.

Interest Rates:

The interest rate charged to the college/unit will be fixed over the life of the loan with the ability to adjust for loans spanning longer than 5 years, at the Treasurer’s Office discretion. Interest rates will be calculated based on current market rates at loan inception. The Treasurer’s Office will monitor market rates throughout the year and adjust accordingly.

Terms:

In general, Equipment loans may be financed for up to 5 years or the useful life of the asset, whichever is shorter. Capital projects may be financed over 5 years or less for bridge financing, or for 5, 10, or 20 years for long-term financing. Internal loans may not exceed 20 years, and early payoff is permitted.

  • The loan start date will typically be the first day of the month following the disbursement of funding for equipment or capital projects.
  • The loan term cannot exceed the asset’s useful life.
  • Borrowers will be charged principal and interest quarterly, based on an amortization schedule provided at loan closing.
  • All accounting entries will be recorded by Banking and Merchant Services, and interest will accrue on the outstanding balance until the loan is paid in full.

Payment Process:

Quarterly principal and interest payments will be charged to the original Chartfield submitted with the application unless updated. Any changes to the Chartfield must be communicated promptly to the Treasurer’s Office and Banking and Merchant Services. Borrowers are responsible for ensuring that sufficient funds are available at the time of payment.

Loan Application:

Request an Internal Loan

Please contact CFO-Treasury@ufl.edu with any questions.

The Treasury team will confirm receipt of all applications via email and provide a processing timeline.

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