25 Jan Financing Your Ministry Expansion Project
2 Timothy 1:7
For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind.
As you may or may not be aware I am a recovering banker with more than 35 years of addiction to balance sheets, profit and loss statements and cash flow analysis. For most non-bankers, the hardest lending concept to grasp is….if you need money, you can’t borrow any……but if you have plenty of money, you can borrow all you want. Now that you understand this underlying principle of lending, I want to let you know there is opportunity for those of you willing to move forward with an appropriate ministry expansion project.
After we go through the design and engineering process with our church partners and determine the appropriate response to their ministry expansion needs, we collect the necessary financials and corporate records to compile a “bank manual” which details the project scope, budget and required documentation from the church. In every case, we offer multiple financial institutions the opportunity to submit a term sheet for the ministry project. This allows us to assist the church in negotiating rates and terms with multiple lenders to achieve the best possible financing for their project. We have been extremely successful in obtaining financing for our church partners who have answered the call to move forward with their ministry expansion projects. These projects have ranged from $450,000 to over $5,000,000, and in each case we were able to select the best available financing option for the church and their particular situation.
The following are actual case studies of ministry partners we have helped with securing financing for their projects:
Case #1 – $2.5 million financing for church expansion
Loan Amount: $2,500,000
Amortization: 20 years
Construction Loan:
Interest Rate: Variable rate at One Month Libor plus 2.41%.
Rate at time of commitment 2.65%
Permanent Financing:
Interest Rate
Option 1: Variable Rate at One Month Libor plus 2.41%.
Rate at time of commitment 2.65%
Option 2: 5 year Fixed Rate at 5 Yr Constant Maturity Treasury plus 2.69%.
Rate at time of commitment 5.25%
Case #2 – $1.3 million financing for expansion and remodeling
Loan Amount: $1,200,000
Amortization: 20 years
Construction Loan:
Interest Rate: Variable rate at One Month Libor plus 2.82%.
Rate at time of commitment 2.99%
Permanent Financing:
Interest Rate
Option 1: Variable Rate at One Month Libor plus 2.82%.
Rate at time of commitment 2.99%
Option 2: 5 year Fixed Rate at Bank Internal Cost of Funds plus 2.65%.
Rate at time of commitment 4.70%
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