UC strategic investment program

In 2010, the CFO Division established the UC Strategic Investment Program (UCSIP) as a suite of internal-loan financing programs that leverage the University's high credit rating to make low borrowing costs available for purposes beyond solely capital construction. UCSIP is a three-pronged funding suite to address capital equipment acquisition, administrative efficiency projects, and faculty recruitment/retention, as described in the table below.

  UC Strategic Investment Program (UCSIP)
  CapEquip (Capital Equipment Financing) C3
(Cross-Campus Collaborations)
STARs1
(Strategic Teaching Acquisition & Retention)
C3 Loans C3 Grants
Purpose: Equipment acquisition in lieu of 3rd-party leasing (including re-fi) Regional centers of excellence, systemwide efficiency initiatives Regional centers of excellence, systemwide efficiency initiatives Lab renovations/equipment specific to a single faculty recruit
Strategic Goal: Cut costs through economies of scale inherent in UC debt program Cut duplication and increase systems commonality Cut duplication and increase systems commonality Maintain competitive research and academic excellence
Size: $200 million authorized/year $20-50 million authorized/year $2-5 million authorized/year $20-50 million authorized/year
Structure: Amortizing loans funded via CP on reimbursement basis Amortizing loans funded via CP on reimbursement basis Principal forgiveness on some or all of an amortizing C3 loan Amortizing loans funded via CP on reimbursement basis
Rate2: 4.00% (FY10-11)
1.99% (FY11-12)
0% N/A 0%
Term: 3-7 years 3-7 years 3-7 years 11 years avg. (15 renovations, 7 equipment)
Debt Service: Campus funds that formerly paid third-party lease payments Principal possibly paid by savings (interest covered by program) N/A Principal possibly paid by ICR (interest covered by program)
Awards: Campuses submit authorization requests annually to Regents Campuses competitively apply throughout the year Campuses competitively apply throughout the year Campuses competitively apply throughout the year

1 STARs is still in the developmental/conceptual stage. It's roll-out date is not yet determined.
2 Subject to annual review.