Office of the Chief Financial Officer
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
(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|
|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.