Process Flow
Budget Review
When a loan request form is completely filled out and submitted, the request is then reviewed by the department of Academic Planning & Budgeting (APB). APB will determine if the department requesting the loan (Borrower) has other funds (such as general funds or endowment funds) which could be instead used to fulfill the request and if the potential debt service associated with the loan can be addressed through the operating budget of the organization. Creditworthiness is the initial step in determining loan feasibility. Once the loan repayment schedule is determined, APB will include the payment in the annual budget of the Borrower.
Rate & Term Assessment
Depending on the loan type, other departments, such as Capital Programs, Gifts and Endowments, Sales and Service will also provide information on project details to help validate the loan amount and the requesting department’s ability to service the loan debt. If it is determined that the requested amount should be issued to the Borrower and that the Borrower has sufficient ability to repay, the Internal Banking Center (Lender) will establish a loan document with the Borrower which includes signatures UCLA AVC and CFO as well as from the appropriate representative from the Borrower (Chair, Dean, CFO, CAO).
Funds Distrbution
The Lender will work with UCLA General Accounting in the facilitation of funds transfer. For the majority of loans, Borrowers will be given permission to link a relevant account to the Lender’s fund. In some cases, the Lender will make a fund transfer to a fund designated by the Borrower. The graphic below provides a simplified overview of the Loan Distribution Process.
Funds Process Flow
LOAN REQUEST
ACADEMIC PLANNING & BUDGET
Budget Review & Credit Analysis
TREASURY SERVICES
Assessment of Collateral; Provisions of Rates & Terms
ACCOUNTING
Distribution of Funds
Loan Repayment
At the time of loan approval, the Lender will provide the Borrower with an amortization schedule, where applicable. For Non-Capital Loans, repayment will generally occur at the end of every fiscal year though this is subject to the Lender’s discretion. For Capital Loans which are Century Bond based, payments will generally occur every May and November. Loan payments, like loan distributions will be processed via the fund-account linkage established at the creation of the loan. Borrowers agree that the Lender has the consent to deduct the loan payment consistent with the amortization schedule or other notification. Borrowers are responsible for making sure that sufficient funds are available to process the payment at the time of the payment and may or may not be given prior notice from the Lender except for the amortization schedule.
Request a Loan
To request a loan, please complete the loan application by clicking the button below. Based on the type of loan, the relevant parties involved would be notified to determine loan eligibility and approval. For questions related to loan submission, please send all inquiries to treasury@finance.ucla.edu.
