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. All internal loans must be approved before the asset is purchased or the capital construction/renovation begins.
Please see the internal loan policy for more information.
Internal Loan Policy
This policy describes the procedures for granting and administering loans to departments from the College's working capital. In addition to fund raising, external debt, or a direct charge to an operating account or reserve, an internal loan provides an alternate source of funding for acquisitions of equipment or capital renovations when the “usual” financing sources are not available.
Standard Internal Loan
- $50,000 - $300,000 used for equipment acquisitions or capital renovations
Capital Construction or Renovation
- $250,000 – determined by Vice President of Finance (VPF)
- Determined on a case by case basis by the Vice President of Finance (VPF)
Standard Loan Request
The following information must be sent to Treasury prior to purchase:
- Description of the equipment or renovation to be financed
- Amount of loan and repayment period requested, including start date
- Alternative funding options considered, including analysis of reserves
- Chart String for repayment of principal and interest
If approved, Treasury will send the repayment terms to the department to accept or decline.
Capital Construction or Renovation Loan Request
During the project planning stages, the department must meet with the Vice President of Finance (VPF) to discuss:
- Availability of internal loan funding
- Amount of loan being requested
- Estimated drawdown schedule
- How repayments will be funded
The project must also go through the appropriate Capital Facilities Budget approval process based on the size of the project. If approved Treasury will send the final terms, including, loan amount, start date, and repayment terms to the department to accept or decline. If accepted, the department needs to:
- Submit a CIP account setup form
Non-Standard Loan Request
Loan requests differing from a standard loan or a capital construction or renovation loan are considered non-standard loans and must be approved by the Vice President of Finance (VPF). The amount, term, interest rate, and debt service payment is determined on a case by case basis; however, the principles set forth herein will generally apply to non-standard loans.