ABOUT CHURCH CAPITAL
If you are interested in finding out more information about our Church loan services, or if you have questions about the requirements for qualifying for a loan, fill out the form below and one of our representatives will contact you shortly. Thank you. Church Capital specializes in arranging loans for Churches of all denominations throughout the United States. Our staff is familiar with the unique needs and special concerns of a Church and its members. Our Church loans are based primarily on the equity in the Church’s real estate. As long as the required equity is available we can usually arrange the financing in a timely manner.. It’s easy for the Church to qualify for a loan, the paperwork is minimal and we make it convenient by coming to your Church.
Loan proceeds can be used for any worthwhile purposes:
Making Property Improvements
- New Pews, Carpet, PaintRoof
- RepairHeating / Air Conditioning
- Re-pave Parking Lot
- Upgrade Sound System
- Stucco Church Exterior
Refinancing An Existing Church Loan
- Does the existing loan have a balloon payment?
- Did any member of the Church personally guarantee that loan?
- Expanding the sanctuary
- Adding an additional building
Purchasing Additional Church Property
- Additional Parking Space
- Parsonage for the Pastor
- Larger Sanctuary
Starting / Expanding A Christian School
Why you want to finance your church loan through Church Capital.
Although not publicized, most institutional lenders such as banks rarely arrange loans for churches. While this has been the situation for a very long time, it has become the case even more so during the last few years as the overall economy has suffered. Though the bank will not tell you this up front, it will become quite evident as weeks turn into months without a loan approval while all the time the bank continues to request additional information. Eventually they will find a reason they can’t fund the church loan having wasted both your time and energy. Even Christian Credit Unions have cut back, or even stopped, arranging church loans in recent years.
At Church Capital our church loans are based primarily on the equity in the church’s real estate. Naturally other items are considered, such as income, but the primary factor is the equity. Normally if there is sufficient equity in the church’s real estate we can arrange the church loan.
What makes Church Capital different from institutional lenders is our loans to churches are funded by private party lenders. These lenders can be individuals, pension funds, IRAs and profit-sharing trusts. This makes it possible for us to arrange a church loan that a bank either can’t or will choose not to fund. In addition, the process takes weeks, not months.
The few institutional lenders who do on occasion fund loans to churches make the process very time-consuming and require significant paperwork from the church perhaps including a resume from the pastor and financial information from the individuals on the Board of Trustees. Some banks may require a personal guarantee from one or more members of the church before it will consider the church loan. Then, should the bank actually fund the church loan, it will likely include a call date in 3, 5 or 7 years even though the actual monthly payments are based on a longer term. This means the church will be faced with a balloon payment down the road which will need to be refinanced with no assurance the bank will perform a second time. Oh, and the interest rate, expect it to be adjustable so the church can never really plan on what the future payments on that church loan will be.
We have had churches come to Church Capital with an existing loan from a bank which had a five year term, the church had made all 60 monthly payments on time, and yet the bank would not refinance the balloon payment. Even if the bank does refinance the balloon payment, the church is faced with having to refinance their church loan every 3, 5 or 7 years including having to pay the cost involved all over again each and every time.
At Church Capital, we can arrange a fully amortized church loan so there will be no balloon payment that needs to be refinanced in the future. It can be a one and done process.
The processing of a church loan with Church Capital is very simple. As you will notice from the “Checklist of Items Required to Process a Loan Request”, most of the items can be photocopied from existing material. We don’t require tax returns, profit and loss statements or balance sheets prepared by a CPA. The only financial information we require are photocopies of the church’s last twelve months bank statements, very simple.
The reasons for a church loan can vary. In addition to refinancing an existing church loan, a church may be considering property improvements such as a new roof, new pews, repaving the parking lot or an addition to the sanctuary. Some churches borrow funds to add a preschool, purchase additional property for more parking spaces or perhaps a parsonage for the pastor.
The principals at Church Capital have been arranging church loans for over 15 years so we are experienced in the unique characteristic of how a church operates as a nonprofit organization. Should you have any questions regarding our loans for churches, or if you would like to get the process started for your church, give us a call at 510-969-4129 and we would be delighted to discuss this with you.