If you run a church or are active in one, then you already know that there are a wide variety of costs that can arise. Even with donations from church members, an additional influx of capital is often necessary for projects ranging from basic refinancing to construction. So, here’s our church financing offer.
You can’t treat churches like a business, because they are different. A church’s revenue usually comes mainly from tithing by churchgoers. We understand this fact and will work to meet your unique needs.
How You Can You Use Church Financing
Church financing can be quite flexible, and that means you can get a loan to meet your specific requirements. For example, if you want to purchase real estate, we’ll try to keep the down payment as low as possible.
Church financing can also be used for real estate renovation. Oftentimes churches own property, but cannot use it until it is renovated. Receiving needed funds will enable you to tackle smaller renovation projects that will benefit your institution and your community.
Church financing can also help you with new construction. The need for construction arises quite frequently with churches. They may want to build a day care center or new sanctuary. It is possible to set up your financing so that the church only needs to pay interest during the construction.
Some churches seek outside financing to refinance existing debts. It may be possible to decrease the current interest rate that your church pays by doing so.
Established Churches vs. Startup Churches
There are different programs available for various types of churches. For example, financing options differ for start-up churches vs. established churches. It is possible to get funding for a non-denominational church, but requirements differ from those for churches that belong to a denomination.
To receive church financing for an established church, the church must typically be at least 7 years old or more, if it is part of a denomination. If your church is non-denominational, it will generally need to have been established for 15 years. Your church must also typically show that it has a minimum average bank balance and is listed with directory assistance.
If you want to qualify for a loan for a newer or startup church, you’ll need to show you have been established for 2 to 5 years and have an average bank balance of $2,500 or more. Again you must be listed with directory assistance. This factor demonstrates your institution’s credibility.
Benefits of Church Financing
- Fixed interest rates
- Low fees
- Low closing costs
- No personal guarantees
- No tax returns
Security is Key
Your religious organization needs peace of mind so it can focus on what’s important. If a lender expects monthly payments that are more than what you can comfortably afford, it can put stress on a church and ultimately not serve its best interests. National Business Funding Group will help you find the best lender for your church, so you can get the funds you need and continue to serve your community in the best way possible.