Mid Councils play a key role in our lending process. Presbyteries are required by our Book of Order to authorize any encumbrance of church property. We consider the process of church borrowing as a partnership between the Church, the Presbytery, and ILP. Loan discussions are most effective when approached as a process of self-discovery where all parties explore the relative strengths and potential challenges of a loan.

For years ILP has been helping churches evaluate their capacity to fund projects. Building on this experience, we have developed a guide for presbytery committees to use when evaluating church requests to borrow money. Though not intended to provide a complete underwriting of the loan, this process analyses key variables to a successful project. These variables include:

Debt per giving unit – Is this a big loan?

Cash flow coverage – Can the church handle to payments?

% of revenue going to debt – Will it hurt their ability to continue their mission and ministry?

To download the Loan Discussion Quicksheet for Presbyteries, click here.