UC Finance
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.