Whether you are constructing a new building, renovating, or need to refinance existing debt, the Presbyterian Investment and Loan program can provide a low-cost loan to support your capital project.
The General Assembly supports church loans through two sources of funds — endowment funds of PC(USA) and investor funds of the Presbyterian Investment & Loan Program. For most loans, we can fund up to $550,000 of a loan using the endowment funds. If a loan exceeds $550,000, we add investor funds to reach the borrower’s need. Refinancing existing mortgages and projects more than $5 million are generally funded with only investor funds.
To receive the Base Rate on investor funds, borrowers are asked to reach a minimum level of supporting investments. The amount required is 20% of the investor fund portion of the loan. Until the 20% is met, the interest rate on the investor funds is 1% higher than the Base Interest Rate. Our qualified staff will work with you to build the necessary investments. These investments can come from qualified members/supporters of the borrower, the borrower’s own funds, or those of middle governing bodies.
Loans are available for construction of a new facility on a site already owned. Construction draws are available on larger projects. You pay interest only until the project is complete and the loan becomes a permanent, amortizing loan. Construction projects that include energy-efficient products or renewable energy sources may qualify for a reduction in interest rates. Click here for more details.
Financing for renovation or remodeling can be structured similarly to a construction which would roll to a permanent loan once the renovation is completed. Renovation projects that include energy efficient products, renewable energy sources, or make your building more accessible, may qualify for a reduction in interest rates. Click here for more details.
Consolidation of loans or refinancing of existing mortgages held by other financial institutions is available. Since loans made through the program have a term that matches the amortization, there is no requirement to renegotiate terms throughout the life of the loan and no balloon payments that can challenge a congregation’s cash flow.
Loans are available for the purchase of an existing building, other than property to be used for investment purposes only.
Loans are available for site purchases where construction will begin within six months, or for the purchase of adjacent property.
Incentive loans are available to qualifying congregations engaged in projects that render our buildings more energy efficient. Click here for more details.
Congregations wishing to make their facilities more accessible and inclusive to people living with disabilities may qualify for special incentives. Click here for more details.
If your church is located in an area declared as state or national disaster and suffered damage, loan rates are reduced to 2% below the prevailing base rate for the first five years and an additional discount for an additional five years. No principal will be charged in the first year of the loan.
A revolving capital line of credit provides the flexibility of completing projects or deferred maintenance over an extended period of time without the hassle of applying for a loan for each project. Terms up to 5 years and amounts from $50,000-$500,000.
In order to be responsive to the needs of our congregations and entities, now and in the future, The Presbyterian Investment & Loan Program is introducing the Safety and Technology Loan for the funding of projects that will meet necessary safety and technology needs to reopen church campuses and provide online worship. Click here for more details.
A revolving operating line of credit provides for cash-flow fluctuations or bridging periods. Terms up to 5 years and amounts from $50,000 – $500,000.