Discounted Loan Rates based on Mission Giving
The Presbyterian Church relies on the connections between its congregations, Presbyteries, Synods, and the General Assembly to nurture and support each other’s mission, and to make possible much work that would be beyond the resources of any one body. Synod of the Pacific supports the connectional church by providing loans and other financial services at favorable rates and terms, and by being a net funding resource to our churches and Presbyteries. At the same time, the Synod relies on the connectional church for operating funds in the form of mission giving and per capita contributions from churches.
Because of the importance of this connectional cycle, priority in the loan approval process will be given to those churches with good mission giving histories. Also, churches with good mission giving histories may be eligible for discounts of up to .75% of a percent on interest rates.
For loan applications, all giving that is directed through the Presbytery or Synod, toward causes that are in the mission budgets of the Presbytery, Synod, or General Assembly, are considered. This includes the following:
- Per Capita contributions
- GA and Synod Unified Giving
- Directed Giving (within-budget projects)
- Special Offerings
- One Great Hour of Sharing
- Theological Education Fund
- Christmas Joy
- Presbyterian Disaster Relief
Not included are “Extra Commitment” projects, which are worthy causes but fall outside the scope of the current budget.
Discounts of up to 3/4 of a percent off of the standard interest rates for Lines of Credit, Mortgages, and James M Muzzy, and Equity Sharing loans are available based on a borrower’s Mission Giving History:
|10.0% or higher||.75% of a percent discount|
|7.0% to 9.9%||.50% of a percent discount|
|5.0% to 6.9%||.25% of a percent discount|
Discounts are based on the previous calendar year’s qualified Mission Giving and are calculated by staff as part of the loan approval process based on a review of financial statements, mission treasury statements, and other sources. The discount is set for the term of the loan, or 5 years, whichever is shorter. Discounts are recalculated at all renewals, conversions, and adjustment periods.
If at the discretion of staff, the previous calendar year is deemed to not fairly represent the applicant’s Mission Giving history, a different calculation period may be used. The Mission Finance Committee reserves the right to review the Mission Giving status of a borrower at times other than those noted above.
For more information regarding Mission Giving Discounts, contact the Investment and Loan Coordinator at 707-765-1772 ext.110.