How It Works
Securing a loan through ILP is a simple step-by-step process.
Building with a Mission
Whether you are constructing a new building, renovating an existing space, or need to refinance existing debt, the Presbyterian Investment and Loan Program has a low-cost loan to support your project. Our staff has years of experience helping our churches shape the right loan package and helping you navigate the process of church borrowing.
Contact
Contact your regional representative to discuss your project
Apply
Apply by submitting our loan application – one loan app for any loan
Approval
Get loan approval, and move on to the loan closing stage
Why the Presbyterian Investment & Loan Program?
Lower Costs
The total cost of financing is more than just the interest rate charged. Loans through ILP have no origination fees, no points, and no prepayment penalties.
Lower Interest Rates
Our mission is to provide low-cost loans to churches. While prevailing market trends do affect the rates, the primary consideration is our mission – providing low-cost loans.
Your Loan Helps Other Churches
When you borrow from ILP, a portion of the interest you pay will fund other loans to PC(USA) churches – helping them to expand, renovate, or reshape their ministry.
Matching Term to Amortization
No requirement to renegotiate terms throughout the life of the loan and no balloon payments that could challenge a congregation’s cash flow.
A Knowledgeable and Caring Staff
With over 100 years of collective experience, here to help your session navigate the unique process of congregational and presbytery approvals.
Loan Options
To see all of our loan options visit our loan options page.
Renovation/Construction
Loans are available for construction of a new facility on a site already owned and draws are available on larger projects.
Site Purchase
Loans are available for the purchase of an existing building, other than property to be used for investment purposes only.
Refinance
Consolidation of loans or refinancing of existing mortgages held by other financial institutions is available.
FREE WEBINAR
How to Survive a Church Building
This webinar provides insightful information and best practices for successfully navigating a church construction project from the visioning stage through to debt retirement.
Borrow FAQs
ILP has several loan options based on your particular project. After discussing the details, we will be able to determine which funding option is best and then give you an estimate of the current rates.
Most of our loans are written for a maximum of twenty years. However, smaller loans and some special purpose loans may have shorter terms.
Our rates are adjustable. For loans that include investor funds, the interest rate is adjusted every three years. For loans that are funded exclusively from endowment funds, the rate adjusts every five years. This does not mean that the loan “balloons” at three or five years and must be refinanced, only that the interest rate may change at these intervals.
Loans more than $100,000 require a mortgage/deed of trust on the property or other suitable security. Loans of $100,000 or less can be unsecured if the loan is creditworthy.
Yes. In the case of construction projects, we close one loan and allow you to take draws against that loan commitment. During the construction phase, you will pay interest only. That is, we will send you a bill each month for the interest due on the amount you have drawn. At the end of construction, the loan will be moved to amortizing status, and you will begin full interest and principal payments.
No. You may prepay principal at any time without penalty.
Yes. The Presbyterian Investment & Loan Program provides a free analysis called a Preliminary Look. Using your current plans, the most current three year-end financial reports, and a few other statistics, we provide you with an analysis of the strengths and drawbacks of taking on the level of debt required to complete your project. This analysis will show you how your debt payments may affect your mission and ministry budget and how many capital campaigns will be required to retire the debt.
Our program is the only General Assembly loan option. Two synods (Alaska/Northwest and Pacific) have programs similar to our investor funds. Churches in these two synods should contact their synod office for details. Also, some presbyteries provide short-term loans for small projects.
Our loan funds can be used for capital projects with churches, middle governing bodies and related entities of PC(USA) such as camps, conference centers, and missions of PC(USA) entities. We cannot do personal loans or loans for operating budgets (working capital). Feel free to call us to verify if your entity/project is eligible.
The Synods of Alaska/Northwest and Pacific have special loan programs for borrowers within their respective areas. If your church is in one of these synods, contact the synod offices for details.
Testimonials
The investment and loan program has helped the ministry at New Hope Presbyterian Church located in Castle Rock, Colorado, an area of explosive growth.
New Hope Presbyterian Church
They’ve been great councilors for our congregation and helped us to understand what is an acceptable loan threshold is for a particular congregation.
Wilson Gunn
Because the interest rates are more competitive, they have allowed us to do more than we could have with a regular kind of a loan and we get to use more money for our ministries.
Russ Kane
The refinancing that the investment and loan program gave us was just the right shot in the arm to restore confidence by the congregation, it uplifted everybody.
Eric Teipel
I think our members are happy to know that the money they’ve put into the program can go to other churches to help them develop from other peoples’ membership investments.
Scott Chandler