14.1 Apply for an Internal Loan
Policy Statement
Major capital projects are usually funded from sources outside the University of Illinois System. However, for smaller projects the system 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.
Procedure
To apply for an internal loan:
- Contact the Office of Capital Financing. They will help you determine the best way to finance the project and work with the unit through the process of obtaining an internal loan.
- Work with the unit's business officer to develop a business plan and complete the Internal Loan Application form. Obtain the required approval signatures for the application and submit to Capital Financing.
- Capital Financing prepares supporting documentation with their recommendation and forwards the complete package to the Associate Vice President for Treasury Operations (AVPTO), Senior Associate Vice President for Business and Finance (SAVPBF), Associate Vice President, Controller, and Deputy Comptroller (Controller), and the Vice President, Chief Financial Officer, and Comptroller (Comptroller).
- The AVPTO, the SAVPBF, the Controller, and the Comptroller review and then approve or deny the internal loan application. If the application is approved, the Office of Capital Financing prepares a formal loan agreement, detailing the terms and conditions of the loan transaction.
- The borrowing unit obtains signatures on the loan agreement from the unit head and the university Provost and/or Chancellor (as required by the policy/ies of all three system universities). The Office of Capital Financing then obtains the signatures of the Comptroller.
- The Office of Capital Financing forwards the fully-executed loan agreement to the unit, Capital Programs, University Accounting and Financial Reporting(UAFR), and the business officer.
- The project manager or unit submits a Banner Fund, Program, and Index Code Request form to UAFR to establish an internal loan Banner fund.
- UAFR sets up the requested Banner accounting structures and processes the principal and interest payments as established by the loan agreement.
Exceptions
The Comptroller, upon recommendation by the AVPTO, the Controller, and the SAVPBF, may approve exceptions to this policy.
First Published: November 2010 | Last Updated: June 2024 | Last Reviewed: May 13, 2020