What is an internal loan?
An internal loan is an alternative way to purchase equipment or renovate space when the “usual” sources of financing are not available. Departments borrow from the College’s working capital and repay the loan, plus interest, monthly, from operating dollars. Please see the internal loan policy for more information.
What can be purchased with an internal loan?
Internal loans can be used to purchase equipment that costs between $25,000 and $250,000. The minimum internal loan for renovations is $250,000. It is possible to obtain internal loans for different amounts, but those loans are reviewed and approved on a case by case basis. Please see the internal loan policy for more information.
I'm considering requesting an internal loan to purchase equipment. How do I get approved?
The following information must be sent to the Financial Analyst – Capital Asset Management (FA) prior to purchase: Description of the equipment to be financed; amount of loan and repayment period requested, including start date; alternative funding options considered, for example leasing; account string for repayment of principal and interest. If approved, the FA will send the repayment terms to you for you to accept or decline. Please see the internal loan policy for more information.
I'm considering requesting an internal loan to finance a renovation. How do I get approved?
During the planning stages, you must meet with the Associate VP for Fiscal Affairs (AVP) to discuss availability of internal loan funding, how much you would like to borrow, and how repayments will be funded. The project must also go through the appropriate approval process depending on the size of the project. Once approved you must meet with the AVP to set the amount to be borrowed and repayment terms. Please see the internal loan policy for more information.
Last Updated: 5/3/10