Business and Financial Policies and Procedures
 

Apply for an Internal Loan

Before You Begin

Major capital projects are usually funded from sources outside the University. However, for smaller projects the University may make internal loans to any of its units. The application for an internal loan must be completed and approved and the loan agreement fully executed before the internal loan Banner fund is established.

Begin

To apply for an internal loan:

  1. Contact Treasury Operations, Capital Financing. They will help you determine the best way to finance your project and work with you through the process of obtaining an internal loan.
  2. Work with your campus OBFS executive officer for business and finance to develop your business plan and complete the Internal Loan Application form. Obtain the required approval signatures for the application and submit to Capital Financing.
  3. Capital Financing prepares supporting documentation with their recommendation and forwards the complete package to the Senior Associate Vice President for Business and Finance (SAVP) and the Vice President, Chief Financial Officer (VP/CFO) and Comptroller.
  4. The SAVP for Business and Finance, or designee, and the VP/CFO and Comptroller review, and then approve or deny the internal loan application. If the application is approved, Capital Financing prepares a formal loan agreement and acceptance letter, detailing the terms and procedures of the loan transaction.
  5. The borrowing unit obtains signatures on the loan agreement from the unit head and campus chancellor. Capital Financing then obtains the signatures of the VP/CFO and Comptroller.
  6. Capital Financing forwards the fully-executed loan agreement to the unit, Capital Programs, Facilities and Services, University Accounting and Financial Reporting (UAFR), and your campus OBFS executive officer.
  7. The project manager or unit submits a Banner Fund, Program, and Index Code Request form to UAFR to establish an internal loan Banner fund.
  8. UAFR sets up the requested Banner accounting structures and processes the principal and interest payments as established by the loan agreement.

Exceptions

The Vice President and Chief Financial Officer, upon recommendation by the SAVP for Business and Finance and campus leadership, may approve exceptions to this policy.

 

Forms Used in this Procedure

Internal Loan Application
Loan Agreement Form (Less than Three Years)
Loan Agreement Form (More than Three Years)
Banner Fund, Program, and Index Code Request

 

Last Updated: March 26, 2012 | Approved: Senior Associate Vice President for Business and Finance - November 2010