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University of Wisconsin–Madison

Research Core Equipment Loan Program

About the Program

The Vice Chancellor for Finance and Administration (VCFA) and the Office of the Vice Chancellor for Research (OVCR) have partnered to launch a loan program that provides a sustainable way to upgrade research core facilities whose equipment needs may not be competitive for grant funding. In addition to supporting more shared equipment replacements and upgrades, the loan program enables purchases of new cutting-edge equipment to address urgent research needs and keep UW–Madison researchers at the forefronts of their fields. The loan program encourages long-term financial planning, supports sound accounting practices, and aligns rate setting with institutional policies.

On this Page

  • Core Facility Eligibility
  • Eligible Costs
  • Sample Ineligible Costs
  • Loan Priorities
  • Loan Amounts and Structure
  • Standard Loan Conditions

Core Facility Eligibility

  • The instrument, equipment, or resource must be housed in and operated as part of a campus research core listed in the Research Cores Directory (https://resources.research.wisc.edu/).
  • The requestor must be a director or manager of the core facility.
  • The core facility and service(s) impacted by the equipment must be financially viable.
  • The core facility’s rates must be up-to-date and compliant with the UW Revenue Producing Activities Policy (https://policy.wisc.edu/library/UW-3030).
  • The requestor and core facility must be current on other loan repayments and reporting requirements.

Eligible Costs

  • Cutting-edge equipment providing new capabilities to campus researchers.
  • Replacement for equipment at or beyond the end of its useful life.
  • Duplication of equipment with demand exceeding capacity.
  • Upgrades to extend the useful life of or add new capabilities to heavily used equipment.

Sample Ineligible Costs

  • Core facility startup costs
  • Building infrastructure improvements including remodeling, renovation, or electrical upgrades
  • Supplies
  • Service agreements
  • Continuing or operating costs (including staff labor)
  • Previously incurred expenditures

Loan Priorities

  • New equipment providing new capabilities to campus researchers.
  • Replacement of old equipment with heavy and broad use.
  • Duplication of existing equipment with heavy and broad use and demand exceeding capacity.
  • Equipment that is integral to externally funded research.
  • Equipment that is ineligible or was recently denied for other funding opportunities.
  • Equipment that fulfills an urgent need.
  • Proposals from facilities with a record of strong and continuing investment in the core and its resources.
  • Cores with strong plans for the sustainable, efficient operation of the resource within a fiscally sound framework that includes appropriate user fees.
  • Proposals from facilities without existing loans.

Loan Amounts and Structure

  • Loan amounts range from $20,000 to $500,000.
  • Loans are interest free.
  • The core facility must secure at least 10% of the equipment purchase price, plus any additional amount over the maximum loan value, from another source. Any related non-equipment acquisition costs (service contracts, supplies, etc.) must be paid by the core in addition to the 10% requirement.
  • All loans and repayments will occur on fund 136.
  • The purchase will be completed by the core facility in accordance with UW purchasing policies and procedures and loan conditions.
  • Repayment schedules will be determined by aligning with published depreciation schedules and distributing payments across the useful life of the equipment.
  • The Madison Budget Office (MBO) will charge repayments to cores annually.
  • If a core is unable to make a payment, the school/college/division in which the core resides is responsible for making the payment or for any deficits that accrue in core facility accounts.
  • If equipment is disposed of or transferred to another facility, full payment is due immediately.

Standard Loan Conditions

  • A brief report for each fiscal year ending June 30 will be due to OVCR by September 1. The final report will be due after the loan has been fully repaid. Failure to submit required reports may negatively impact future OVCR funding opportunities.
  • User rates must be compliant with the UW Revenue Producing Activities Policy (https://policy.wisc.edu/library/UW-3030) and in alignment with depreciation schedules. Rates will be reviewed as part of the annual reporting process.
  • MBO maintains fiscal responsibility for this loan and will monitor the purchase to ensure compliance with loan terms and conditions.
  • If the purchase price is lower than the quote included in the proposal, the committed cost share dollar amount remains, and the loan amount will be lowered. If the purchase price is greater than the quote included in the proposal, the core facility is responsible for any amount above the approved loan.
  • Any changes to the equipment described in an approved loan proposal must be approved in advance of the purchase.
  • The purchase or upgrade of capital equipment is regulated by numerous UW–Madison policies and procedures (e.g., UW-3008 Capital Equipment Policy). Additional purchasing requirements apply to purchases over $50,000 and for non-competitive (sole source) purchases. Loan recipients are advised to work with unit or campus purchasing agents to ensure compliance with all relevant policies and procedures (see https://businessservices.wisc.edu/purchasing/ and https://businessservices.wisc.edu/accounting/capital-equipment/).