Why wouldn't it? I'd be mining at 100 mhash/s instead of 800 khash/s and then I wouldn't need to loan from anyone.
At 100Mhash/s it would still take around 6 years to get 120BTC, not accounting for difficulty increase.
At 800Khash/s it would take 726 years so you really need to turn your CPU mining off to save that electricity cost
But it sounds like your loan is for a good cause, good luck
