Internal Loan

Treasury Management administers the University’s Internal Advances. The University’s Internal Advances provides debt funding for various construction and improvement projects that benefit our students and support GW’s mission. University Divisions and Schools may borrow funds through the University’s Internal Advances to finance certain approved capital projects.

When the internal loan is approved, an internal loan agreement is signed by the borrowing unit’s Finance Director, Department Head, and Vice President as well as the Vice President, Chief Financial Officer and Treasurer.


University Finance Directors should submit an Internal Loan Application through the Treasury Management website when seeking debt funding for an approved capital project.

For questions, please email Erecka Gibson at [email protected] or call 571-553-4147.


  1. Requests for Internal loans should only be made by school/division Finance Directors for approved capital projects.
  2. Requests for internal loans are submitted to the Treasury Management Office for processing. An executed Internal Loan Agreement is required before funding is provided.
  3. The Vice President, Chief Financial Officer and Treasurer will determine an appropriate interest rate, which is typically based on the University’s current Weighted Average Cost of Capital, the fees and issuance costs of borrowing, and the loan purpose and duration.
  4. Internal loan requests will be accepted for financing needs in excess of $100,000.
  5. Where there is any discernible risk identified in the revenue streams for repayment (e.g. fund raising or revenues from a new venture), the borrowing department must identify appropriate backstop funding to ensure repayment of the internal borrowing.
  6. The term for an internal loan cannot exceed the estimated useful life of the asset being financed. Maximum loan repayment period is 30 years.
  7. Interest accumulates during construction. Principal and interest payments commence upon project completion.
  8. Departments will be charged principal and interest quarterly on 9/30, 12/31, 3/31 and 6/30.
  9. Interest is capitalized to construction project costs when construction budget is greater than $3M and the building is new or the whole building is taken out of service.
  10. Internal loans can be prepaid without penalty.