Internal Borrowing Guidelines

The university’s internal borrowing guidelines provide principles for using capital resources wisely.

Basic Guidelines

Capital project must comply with the Capital Project Funding Guidelines. Under extenuating circumstances, certain exceptions to these guidelines can be approved by Planning and Budget and the Treasurer’s office.

Loan Terms:

  • The loan repayment period cannot exceed the useful life of the financed asset. The maximum loan period is 30 years or the term of the underlying debt instrument, whichever is shorter.
  • Interest is paid during the construction period; principal and interest amortization will begin within one year of project completion (e.g., certificate of occupancy).
  • Compounding of interest will be available only on projects with a repayment source not available during construction (e.g., revenue to support a project funded by an auxiliary source) and is greater than $5 million. This repayment source must be preapproved by the Division for Budget and Planning and the Treasurer’s office.
  • All projects are required to have a formal funding plan and a contingency funding plan (backstop repayment source).

Asset Types and Recommended Maximum Loan Repayment Life

Asset Loan Repayment Life (years)
Buildings

Building (new)

 30

Building components (HVAC systems)

 20

Interior construction and renovation

 20

Roof upgrades

 20

Building equipment and fixtures

 15

Improvements other than building (includes, but is not limited to, upgrades to roads, sidewalks, utility projects, etc.)

 10-15

If you have any questions, please contact Carolann Saggese, Director, Debt, at (607) 342-7474.