Bridge Program

Program Description

University financing programs currently exist to finance both long-term projects (e.g. the ILP) and short-term projects (e.g. the FAST program). The Bridge program addresses the timing gap between project expenditures and the receipt of gift funds to accelerate project construction.

The funding available for Bridge loans is limited. Pledge payments that closely align with project expenditures benefit the project and maximize the benefit of the Program. When feasible, effort will be made to align pledge payment schedules with construction expenses. The Bridge program is intended to assure that a project is not delayed due to timing differences between project expenditures and gift fund receipts.

The Bridge program is sized to $60 million (as of 3/1/20). The program size may be periodically revisited by the Treasury Office's Debt Management & Analytics team. Bridge loan financing is subject to the availability of short-term funds and the impact on Institutional liquidity.

More Information

Program Eligibility: To be eligible for the Bridge Program a project must be approved or delegated by the Board of Regents with all funding sources identified. 100% of donor funds must be pledged at Board approval. In other words, only donor funds with signed pledge forms at Board approval may be included in pledged amount.

Pledges realized after 7-years from the Board approval date do not qualify for the Bridge loan program. While the pledge realization period may be 7 years, the loan balance may not be outstanding longer than five years.

At Board approval, a minimum of 10% of donor funds must be in-hand. The Bridge loan will be sized to align with gift collection and construction cash flows, but the loan amount may not exceed 25% of total donor funds (collected within 7 years of approval) at the time of Board approval. The maximum term of these loans will be five years. Six months prior to construction beginning, no less than 25% of pledges identified at Board approval are required to be on-hand.

Use of the program requires Board approval (direct or delegated).

Use of Program Proceeds: Proceeds of this program may only be used to fund construction before pledged donor/gift funds are collected.

Interest Rate: The interest rate shall be established at the time of first draw and will be fixed for the duration of the loan. The current interest rate for Bridge financings is 3.0% (as of 3/1/20).

Payments:  Amortization and debt service schedules will initially be provided at the time of issuance, and will be amended as draws and repayments occur. Interest is accrued and paid monthly from any available departmental resources (other than gifts). There are no costs of issuance associated with this program and there is no prepayment penalty for repaying loans sooner than anticipated.

Program Size: The minimum initial Bridge loan size is $2 million. At any time, the maximum outstanding loan balance cannot exceed the amount of remaining uncollected donor funds assigned to the project. Excluding the final repayment, principal repayments shall occur in increments of no less than $10,000.

Final Amortization:  No loan shall be outstanding more than 7-years after Board approval. The borrower shall be asked to repay outstanding program balances in full at the end of the 7-year period. While access to the bridge loan may be available for up to 7 years after approval, the loan balance may not be outstanding longer than five years.

Loan Process: Use of the Bridge Program is determined as part of the typical due diligence process associated with project and funding approval. Please contact Annette Sommer, Associate Vice President, Treasury, at

Ongoing Disclosure and Program Requirements: Borrowers are asked to provide reports on the status and timing of pledges/gifts. The borrower may also be asked about the level of unrestricted reserves that could be used to pay the loan if necessary.

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