Church Loan Fund
Evangelical Presbyterian Church
Information
The General Assembly established a loan fund for church site and building development whereby on a
revolving capitalization basis, low interest monies are available to mission churches and other churches in
need.
Church Loan Fund Criteria
1.
Church must submit a Church Loan Fund Application (Section 2 of 3) along with the church’s
financial information, including balance, expenses, and income statements, in accordance with
generally accepted accounting principles.
2.
Fee rate: The original rate shall be established at the time the loan is made for a period of one (1)
year and renewed on each succeeding anniversary date, and shall be based upon prevailing
money market rates.*
3.
Maximum term of loan:
Land – five years
Capital Improvements – five years
Equipment – five years
Building – fifteen years
Repayment minimum:
Land – 20% of original principal each year
Capital Improvements – 20% of original principal each year
Equipment – 20% of original principal each year
Building – 6.67% of original principal each year.
Payable in twelve monthly installments each year, including above-noted principal plus 1/12 of
applicable fees each month.
4.
Loans shall be restricted for church site acquisition and/or building construction or purchase,
capital improvements, or equipment purchase.
5.
Maximum loan to any one church:
a. 10% of total Church Loan Fund or $150,000, whichever is larger;
b. 75% of the value of mortgaged property;
c. Debt service: an amount not to exceed 40% of a church’s previous year’s income (operating
budget).
6.
Security of loans
a. A presbytery shall contractually guarantee timely monthly repayment of mortgage upon the
recommendation of its Church Development Committee following its determination that the
loan is a sound financial venture.**
b. The Church Loan Fund shall carry a first or second mortgage on property for which the loan
is being made.
7.
Church must have adequate insurance, guaranteed title, and performance bonds from
contractors involved.
8.
Church must have proposed land for existing building appraised by a qualified appraiser. New
construction should be granted by competitive bidding on plans.
9.
If church disaffiliates with the EPC for any reason, the loan principal balance becomes due
immediately.
10.
Community zoning laws must be allowable by such laws. These requirements should be satisfied
prior to loan approval.
Adopted 1983
*Amended 1994
**Amended 1990
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CHURCH LOAN FUND
Application Process
The Seven Step Process (SSP) of the Church Loan Fund (CLF)
Step 1
Each EPC church pastor and session seeking an EPC loan shall study and follow the
Church Loan Fund Criteria Sheet and comply with each item in order to properly
complete the CLF application. At this time, alert the respective Presbytery Church
Development Committee of the church’s application.
Step 2
Each church will submit the Loan Fund Application to the General Assembly Office for
review.
Step 3
Submit the reviewed CLF application, with all required supporting documents, to the
local church’s respective Presbytery Church Development Committee (CDC). A
representative of the National Outreach Department of the Office of the General
Assembly will assist in coordination with the Presbytery CDC.
Step 4
Verification and reasonable documentation of expenditures covered by the loan will be
provided to the Church Loan Fund Committee.
Step 5
Approval by the Church Loan Committee will be given after all preceding steps have
been completed and are satisfactory.
Step 6
The EPC church that has been approved for a loan from the CLF will receive a certified
check from the CLF through the General Assembly Office.
Step 7
Repayment of the loan shall be made according to an agreed-upon schedule of
payments. Note: Loans on land, capital improvements, and equipment are to be paid
within five years. Loans on church facilities are to be paid within fifteen years.
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EPC CHURCH LOAN FUND
APPLICATION
Please answer each question in full. All names should be properly spelled and must be given exactly as
they will appear on legal papers. With the submission of this request, the mission and vision of the
church, and how this loan would assist in accomplishing the mission of the church, are required.
I.
The Church:
A. List exact name, address and telephone number of church:
Name of Church:
Street Address:
City:
State:
Zip:
County:
Telephone:
B. Presbytery:
Amount of Loan Requested $
Presbytery Church Development Chairman:
C. List the name, complete address and telephone number of the liaison person between
the General Assembly Office and the church, to whom all correspondence should be
sent:
Name
Street Address
City
State
Zip
Phone
II.
List names (exactly as they will be signed) and give complete residential addresses of the
following church officers:
MINISTER:
Name
Address
City
State
Zip
Phone
CLERK OF SESSION:
Name
Address
City
State
Zip
Phone
TREASURER:
Name
Address
City
State
Zip
Phone
Church Growth
A. Date church was started:
Date organized:
B. Date church was incorporated:
Charter membership:
C. Additions the past year by confession of faith:
by letter of transfer:
D. Present church membership:
E. Average worship and church school attendance in the past five years:
20
Worship:
Sunday School:
20
Worship:
Sunday School:
20
Worship:
Sunday School:
20
Worship:
Sunday School:
20
Worship:
Sunday School:
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III.
Church Property
A. Size of lot
Corner lot?
Yes
Attach a map of lot naming adjoining streets.
No
Street address
Is there sufficient land for an overall master plan including parking and expansion?
Yes
No
Is off-street parking required? If so, give ratio
B. Cost of property: $
Are streets paved?
Present day value: $
Yes
No
Sidewalk laid?
Yes
No
C. What properties or access streets adjoin the church?
What are the setback requirements?
Is site adequately drained?
Yes
No Have tests been made to determine if
subsurface will permit normal foundation procedures?
Yes
No
D. Enclose pictures of existing structures and neighborhood, drawings, specifications, etc.
E. What is the value of existing structures? $
F. Will the loan be used for remodeling, land acquisition or construction?
IV. Title to Property
A. Who holds the title to the property?
Warranty Deed?
Other
B. Is Deed recorded?
When?
Title insurance?
C. Are there any unpaid taxes, liens, or assessments? If so, please list them.
If so, what steps are being taken to pay them?
What leases, if any, are currently in effect on the property?
V.
Finance
A. Attach income and expense statements for last calendar year or fiscal period.
B. Attach balance sheet for last year end or fiscal period.
C. Attach line item budgets for the past 5 years plus the current fiscal year.
Pastor’s salary package
D. Total monthly offerings for each of the last 12 months:
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Operating Budget / Building Fund
Operating Budget
Building Fund
Operating Budget
Building Fund
$
JAN
$
JUL
$
FEB
$
AUG
$
MAR
$
SEP
$
APR
$
OCT
$
MAY
$
NOV
$
JUN
$
DEC
VI. Indebtedness
List indebtedness (mortgages, liens, church property, manse, etc.)
Date
Maturity
Current
Interest
Monthly Payment
To whom
Incurred Date
Amount
Rate
Schedule
Indicate any pre-payment penalty
Does church intend to pay off indebtedness with loan?
VII. Financing the Project
Church Construction Budget (do not include current indebtedness)
Cost of land……………………………………………………………..$
Amount to be financed………………………………………………….
Market value of land……………………………………………………
Legal fees, realtors, etc…………………………………………………
Architect’s fees…………………………………………………………
Site preparation (grading, landfill, etc.)………………………………..
Basic general contract (enclose copy of contract or cost breakdown).
Permits…………………………………………………………………
Utility hookup charges:
Sewer:…………………..
Water……………………
Gas……………………....
Electric………………….
Telephone……………….
J. Final grading, seeding, landscaping………………………………..
K. Parking lot………………………………………………………….
L. Walks and steps…………………………………………………….
M. Furnishings and supplies……………………………………………
N. Insurance………………………………………………………………
O. Other…………………………………………………………………..
P. All present indebtedness………………………………………………
Q. Total cash on hand for the project…………………………………….
R. Additional cash receipts anticipated prior to construction……………
S. Other (sale of property, etc)…………………………………………..
T. Balance needed………………………………………………
U. Amount of loan request…………………………………………
V. Current annual plus anticipated new loan debt service cost ……
W. List other sources from whom you sought this loan………………
X. Is this the primary or supplemental loan?………………………….
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VIII. PROJECTED BUDGET GROWTH FOR EACH OF THE NEXT (5) YEARS
20
20
20
20
$
$
$
$
20
$
Total Income
Projected Expenditures
A. Operating Budget
1. Salaries:
2. Utilities:
3. Building Maintenance:
4. Insurance:
5. Program:
6. Missions:
7. Miscellaneous:
8. TOTAL OPERATING BUDGET:
B. Debt Service: (Total principal and interest)
MISSION AND VISION OF CHURCH
Please state the mission or vision of your Church, and how this loan will assist you
in accomplishing the vision or mission of your congregation.
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