Departmental and Auxiliary Lending

The University manages a central loan program under which it provides funding for projects under the guidance of the Vice Chancellor for Finance and Administration and the University Treasurer. The benefits of this program include; (i) structuring of transactions on an aggregate, rather than by project, basis, (ii) continual access to capital for borrowers, (iii) predictable financial terms for borrowers, (iv) minimizing interest rate volatility, (v) flexible timing on prepayment of loans without penalty, and (vi) equity for borrowers through a blended rate.

The University charges a blended interest rate to its borrowers based on our actual funding costs. This interest rate may change periodically to reflect changes in the University’s average aggregate expected long-term cost of borrowing. The blended rate may also include a reserve for interest rate stabilization purposes.

Each borrower is responsible for the repayment of all funds borrowed from the central loan program, plus interest, regardless of the internal or external source of funds. The University provides for flexible financing terms in order to accommodate individual entities as determined by the project scope and repayment source. The Director of Strategic Debt Management is the primary contact for divisional and auxiliary loans.

Departments and Auxiliaries that are interested in borrowing funds for small and large capital needs, can contact Lori Johnson via phone, 919-513-0748, or email at to discuss the project. Repayment periods will range from 2 to 30 years depending on the scope of the project. The repayment period for equipment loans is typically 5 years or less; the repayment period for building renovations is generally 15 years and 25-30 years for full building projects. The repayment schedule depends on a variety of factors that are discussed on a case by case basis with the borrower.

A loan application and sample borrowing agreement can be downloaded from the links below.