Missionary Society Revolving Loan Fund
Loans are granted to parishes in good standing, with no loans granted for more than 80% of the cost of the proposed project and no loan exceeding $100,000. Parishes are eligible to receive only one revolving loan at a time.
Loans will NOT be granted for the purposes listed below:
- To support parish operations, salaries/benefits or normal maintenance.
- To purchase or repair stained glass windows, pipe organs, musical instruments or decorative items.
- To purchase, repair or maintain any facility for which the parish receives rental income/space usage fees from ‘for profit’ organizations.
- To fund ministry programs.
- To purchase a motor vehicle.
- To make loans to individuals.
- To acquire real-estate or other real property.
Parishes with a loan in default over 180 days may be required to repay the outstanding balance of their loan in full within a 180 day period and may be subject to the provisions of ECCT Canon 1.11.C.
All loans shall bear interest rates set by the Finance Committee, reflecting economic conditions at the time the completed loan application has been received. The interest rate as of 2020 is 3.5%.
An additional late fee will be applied to loan payments 30 days past due, based on an amount determined by the Finance Committee and documented on the original loan note. The additional late fee is 1.5% of the past due amount per month as of 2020.
Policies and Procedures:
Revolving Loan Applications must include Vestry Meeting Minutes with Approval Date and Resolution of Authorization.
Applications will be reviewed at the Finance Committee's next quarterly meeting and the committee will make funding recommendations to Mission Council based on the parish's financial need and viability. Mission Council will consider the recommendation at its next quarterly meeting. Parishes will be informed of Mission Council's decision within 4 weeks.
Upon approval notification, parishes will receive a promissory loan note, amortization schedule, and other related documents. Loan notes must be signed by the Rector/Priest-in-Charge, Wardens and Treasurer prior to issuance of the loan proceeds. Upon receipt of the fully executed documents, the finance department will process the funds within 4 weeks via ACH/Direct Deposit.