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Capital Equipment Financing

Learn more about capital equipment financing

UC San Diego Departments may acquire internal financing for equipment through the Campus Treasury Office (CTO). These low, fixed-rate loans can be obtained through an internal financing program called UCSD Capital Equipment Financing (SD CapEquip).

SD CapEquip program guidelines

  • The program is not for equipment leases – it provides up-front funding to your department to purchase the equipment outright.
  • The size of the loan must be $100,000 or greater.
  • The equipment must have a useful life of at least 3 years. Loans will be amortized over a minimum of 3 and maximum of 7 years.
  • Equipment purchases may be bundled to reach the $100,000 minimum. Note: Bundled equipment must have a useful life of at least 3 years.
  • Debt service is recorded semi-annually, November (interest) and May (interest + principal).
  • Interest rates are set annually and are locked for the life of the loan.
  • Current interest rate (as of FY24): 4.858%
  • Disposal of the equipment prior to full amortization requires the remaining principal to be paid in full.
  • Some acquisitions may not qualify: The Department must display adequate financial strength to repay the loan. Sponsored projects generally do not qualify, except under limited circumstances such as bridge-funding or acquisitions specifically budgeted as financed.

Benefits of the SD CapEquip Program

  • SD CapEquip is designed to be simple. The agreement is just one page, compared to a lengthy equipment lease agreement.
  • SD CapEquip interest rates are usually lower and the terms and conditions better than those of a third party financial institution.
  • The processing time is shorter – generally processed and approved in 1 week.
  • The procurement process is simpler – it follows the standard procurement process by issuing a PO directly to the supplier.
  • There is no bidding of lease rates or changing payment schedules.

For more information or to get started

  • Contact Strategic Procurement via Service Now or call 858-534-9494
  • Contact the Campus Treasury Office (CTO) by emailing Deanna Richardson ( and Holly-Ann P. Juarez ( with the following information: 
    1. Amount requested: Provide equipment quote (if available) including shipping & sales tax (
    2. Loan period (years): Typically 3 to 7 years, not to exceed equipment useful life.
    3. Brief description of equipment & intended use: Recharge, Research, Other?
    4. Acquiring department name & full OFC chartstring: This is where the loan proceeds will be deposited so that the purchase can be made.
    5. Repayment source for Interest and Principal & full OFC chartstring; This is where the campus will charge the debt service. Principal and interest can be paid on same or split to different chart strings.


    Note: OFC chartstring includes Entity – Fund – FinU – Functionand if any: Location – Project – Task#


    CTO will provide a draft amortization table detailing the annual debt service amount and payback schedule.

    With these annual debt service estimates, the department will need to provide a financial projection that shows ability to repay the loan from operations, starting with current year balances and projecting through the term of the loan. 

    After financial review, CTO will reach out with loan documents for approval signatures.

Need help? Contact our team via the UC San Diego Services & Support portal.