Lines of Credit

Quick Points

• Lines of Credit can be used for the purpose of construction, renovation, or for temporary cash flow when the church’s income is uneven.
• Copies of financial records and attendance history from the past 3 years are to be provided to Church Investors Fund at the time of application.
• Lines of Credit can be either a “revolving LOC”, meaning they can be drawn upon and paid down more than once; or a “drawn down LOC”, meaning that they can only be drawn upon once.
• Loans are normally amortized over a period not in excess of 25 years.
• Loans are secured by a mortgage on your property.
• A one time origination fee is charged at the time the loan is set up. The loan origination fee on new loans is 0.5% to 1.00%.
• Interest rates are “fixed” as a percentage related to prime.
• Interest only payments are due only on the amount that has been drawn.
• Interest is charged and due once per month.
• Payments may be electronically transferred directly from the church’s bank account if desired.
• The church submits a Draw Request to Church Investors Fund asking that funds be advanced on the loan to pay these costs.
• Loan payments generally should not add up to more than 30% of the church’s annual budget.
• The purpose of a Line of Credit is to give the church additional flexibility in their financial planning.
• Loans are secured by a mortgage on your property.
• The interest rate is set once per year at the anniversary date of the loan’s origination.
• The church needs to provide annual financial statements to Church Investors Fund.

Church Investors Fund Line of Credit Application is available for download. You must have the Adobe Acrobat Reader plug-in in order to view these pages. The Reader is available for download free of charge at www.adobe.com.

Please call us at 1-800-543-2343 or email us for current interest rates.