Overview Synod Loan and Investment Program

The Synod of the Pacific has an extended history, dating back to the 1950's, of lending to member churches, presbyteries, and constituent organizations within its bounds. The Synod's current portfolio stands at $40 million dollars. Its has never had to foreclose on a barrower and has been repaid every dollar lent under the current loan program.

The Synod's Loan Service provides much-needed funds for site and church property purchases, first unit (sanctuarty, Christian education and offices) construction, expansion, renovation, and refinancing projects, manse purchases and home-equity sharing arrangements. It also provides flexiblity and an understanding of Presbyterian Church needs and operations that cannot typically be found with commercial lenders, in addition to attractive interest rates, and very low fees and expenses. 

Because the Investment and Loan Services work together, it is known as the Synod Investment and Loan Service.

The net proceeds generated from the Investment and Loan Services are recycled back to member presbyteries as a portion of their Mission Partnership Fund allocations.

The liquidity of the Service is underwritten by a $5 Million Revolving Line of Credit with Sonoma Bank. 

Synod of the Pacific offers several different loans options to meet the needs of potential borrowers:

  • Line of Credit Loans provide funds for construction and renovation projects and other needs.  Funds are drawn as needed, and only interest payments are required.  The Interest rates are variable and subject to a Mission Giving discount of up to 3/4%.  Lines are granted for a 2 year term, with renewal possible for an additional two year term.
  • Amortized Loans provide funds for site and building purchases, and are also used to refinance Line of Credit Loans after project completion, or to refinance commercial debt.  Principal and interest payments are fixed for the 5 year term of the loan, and are based on a 20 year amortization, with renewal possible for three additional 5 year terms.  Interest rates are variable and subject to a Mission Giving discount of up to 3/4%.
  • James M. Muzzy Loans provide capital funding for congregations with special financial needs, including small congregations, new church developments, racial/ethnic congregations, and churches with catastrophic uninsured losses.  Fixed rate loans, subject to Mission Giving discount, amounts of up to $250,000 are available for up to 15 years.
  • James M. Muzzy Line of Credit provide a flexible line of credit for churches that meet the conditions of the Muzzy fund. Fixed loan rate, subject to a Mission Giving discount of up to 3/4%. Lines are granted for one year term, no renewal/extensions available. 
  • Low Interest Green Loans provide low rate funding for congregations wishing to make environmental friendly improvements to their church facilities. Green loans may be used to upgrade outdated appliances and office equipment, convert to alternative energy sources, or for implementing energy conservation measures.  The maximum amount for Green Loans is $90,000, to be repaid at 4.0% interest, over ten years.  
  • Low Interest Insurance Loans provide for risk mitigation improvements for church facilities, such as sprinkler or fire alarm installation, security and anti-vandalism measures, removal of hazardous materials, roof repairs, plumbing repairs to avert water damage, and repairs of all kind of hazards.  Each year, the James M. Muzzy fund offers a limited number of loans of up to $20,000, for these purposes.  The loans are repaid at 2.0% interest, over five years.
  • Equity Sharing Loans provide funds for churches wanting to participate in Equity Sharing Agreements with pastors.  Loans of up to $125,000 for congregations of up to 250 members are made from the James M. Muzzy Fund.  For larger congregations or loan amounts exceeding $125,000, Line of Credit or Amortized Loans can be used for this purpose.  Click Here for more information about Equity Sharing between Pastors and Churches.

 

Discounts of up to 0.75% off our usual lending rates are available for churches demonstrating an excellent history of supporting Presbyterian causes through General Mission Giving.  Click Here for more details.  To determine what discount your congregation may qualify for, contact the Synod's Loan Coordinator.

To apply for a Synod of the Pacific loan, complete the appropriate application or contact the Loan Coordinator for help.  Loans must be approved by the congregation, the Presbytery and the Synod.

The Synod takes great pride and care in managing this important program.  We recognize that it is an integral part of the health and vitality of all churches within the boundaries of the Synod of the Pacific.  If you would like more program information, please  contact us:

For Loans:

Kendra Fraser at (800) 754-0669 X 10 or at mailto:kendra@synodpacific.org