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Internal Loan Guidelines

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 from 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.

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.

Processing Fees:

The processing fee charged to the college/unit will be a one-time payment based on the term of the loan. (0-5 years: $2,000; 6-10 years: $4,000; 11-15 years: $6,000; 16-20 years: $8,000). This fee helps to offset the financial burden of reviewing, processing, and servicing the loan through its term.


In general, loan terms for equipment can be financed for 5 years or life of the asset, whichever is less.
Loan terms for capital projects can be financed over 5 years or less for bridge financing and 5, 10, or 20 years for capital projects. Internal loans at this time cannot exceed 20 years. Early payoff is permitted.

  • the loan start or issuance date will typically be the first day of the month following the capital
    project or equipment funding
  • the loan term cannot exceed the useful life of the asset being financed
  • the borrowing unit will be charged principal and interest quarterly based on the amortization
    schedule provided
  • entries will be recorded by Banking and Merchant Services; interest will be charged on the
    outstanding loan balance until the loan is paid in full

Payment Process:

Borrowers will be charged principal and interest quarterly based on the amortization schedules provided at the loan closing. Entries will be recorded by Banking and Merchant Services to the original chartfield provided at the application stage unless otherwise noted. Any changes to chartfield for P&I payments need to be communicated to the Treasurer’s Office and Banking and Merchant Services immediately. Borrowers are responsible for making sure that sufficient funds are available to process the payment at the time of the 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.