The purpose of the Revolving Loan Fund is to provide short term financing to Baptist Church Planters mission churches and established Baptist Churches acting as mother churches for Baptist Church Planters church plants.
II. GOALS AND OBJECTIVES
- Stimulate church planting within the United States.
- Encourage sound financial policy and establish financial history.
- Provide financing not available from other sources.
- Encourage purchase of land for future church plants.
- Provide flexible loan terms.
To qualify the loan must meet the following requirements and restrictions.
- Purchase of land and /or buildings
- Costs associated with site development for a new building.
- Renovations and improvements to existing buildings
- Construction of new buildings
- Refinancing or consolidation of existing debt
- Purchase of equipment
- Personal Support or salaries
- Complete and submit a Revolving Loan Fund Application
- Loan recipient must be a duly organized Baptist Church, in agreement with Baptist Church Planters doctrinal statement.
- The church must demonstrate spiritual health, spiritual impact on the community, exhibit a sense of purpose and direction, and evidence leadership from a godly pastor.
- The church must provide tangible evidence of financial responsibility.
- The project must be determined feasible by ChurchCare Inc. to qualify for loan.
IV. LOAN TERMS
- ChurchCare Inc will determine the loan amount, terms, origination fees and interest rate based upon the specific needs of the church plant and cost involved in originating the loan. The intent of this fund is to help as many churches as possible. Therefore, short-term loans meet the purpose of this fund.
- The interest rate charged may vary with the loan; Prime Rate minus 1% is the suggested rate with no loans less than 3%. Loans will be interest free for the first year, starting at closing date.
- Origination fees include all costs associated with the loan. The origination fee will be determined and agreed upon before the loan is processed and will be paid at closing. The fee will include costs incurred by ChurchCare Inc. and its representatives, such as travel to the site, legal fees, staff time, recording fees, etc. Origination fees are not refundable.
- Loans will be approved based on available funds at the time of application. Priority will be based upon date of completed application. Disbursement of funds may be withheld until all stipulated requirements are fulfilled. Such requirements could be but are not limited to all necessary approvals from local and state agencies, title or deed requirements, insurance certificates, or building permits.
- Any loan may be secured by a duly recorded mortgage. At the discretion of the ChurchCare Board, loans of small amounts for repairs or renovations, that will be short term repayment, may be secured with a promissory note, signed by the church.
- Repayment schedule will be based upon a level debt amortization for not more than five years term. There will be no prepayment penalty.
V. APPLICATION PROCESS
- Applications may be submitted to ChurchCare Inc. at any time. All applications will be reviewed and acted upon as quickly as possible.
- ChurchCare Inc. will consult with administration of Baptist Church Planters to confirm status of the church plant and to help determine feasibility of the project for which the loan has been requested.
- Only complete applications will be processed.
- All loans will be approved by ChurchCare Board upon recommendation from the Finance Committee. All loans may be subject to review of legal counsel.
- The Finance Committee will work with legal counsel to complete all necessary documents and set up a closing date, and have all documents recorded
VI. FINANCE COMMITTEE
The Board of Directors of ChurchCare Inc. may appoint a Finance Committee. If no committee is appointed, then the ChurchCare Board will act as the Finance Committee. All loans must be approved by the ChurchCare Board.
A. It is suggested that a banker and real estate professional be included as part of the Finance Committee in an advisory role.
B. The Finance Committee will review all applications and make recommendations to the ChurchCare Board.
Included, but not limited to review, are the following standards:
- Applicants credit history including existing debt, and financial records.
- Resolution from borrowing church to borrow including record of the vote.
- The committee or its designee will visit the site and inspect the property.
- Review appraisals of property to be used as collateral.
- Review church budgets and debt service ratio to income
VII. The Executive Director will report to Baptist Church Planters council, at each council meeting. The report will include information on all active loans and pending applications; loan balances and payment history; and the status of Revolving Loan Fund, including balances and income.
VIII. The ChurchCare Board may grant exceptions to the above policy upon recommendation of the Finance Committee.
IX. If the church or mission work ceases to meet any of the above requirements the loan can be declared payable in full.
Addendum to Revolving Loan Program – March 16, 2021
- ChurchCare may upon the request of Baptist Church Planters participate in the funding of grants being approved by Baptist Church Planters Finance Committee. The funds available for grants will come from the Revolving Loan Fund but will not exceed 10% of the available balance.
The terms or conditions of the original Revolving Loan Fund document not otherwise amended by this addendum shall continue as is written.