Overview Synod Loan Service
Synod of the Pacific has an extended history, dating back to the 1950s, of
lending to member churches, presbyteries, and constituent organizations within
its bounds. The Synod's current portfolio stands at 31 million dollars. It has
never had to foreclose on a borrower and has been repaid every dollar lent
under the current loan program.
Synod's Loan Service provides much-needed funds for the site and church
property purchases, first unit (sanctuary, Christian education, and offices)
construction, expansion, renovation, and refinancing projects, manse purchases,
and home-equity sharing arrangements. It also provides flexibility 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.
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.
liquidity of the Service is underwritten by a $5 Million Revolving
Line of Credit with Umpqua Bank.
of the Pacific offers several different loans options to meet the needs of
- 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 .75%. Lines are granted for a 2-year term, with
renewal possible for an additional two-year term.
- Amortized Loans provide
funds for the 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 .75%.
- 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 20 years.
- James M. Muzzy Line of Credit provides 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 .75%. Lines are granted for one year
term, no renewal/extensions available.
- Low-Interest Green Loans provide low
rate funding for congregations wishing to make environmentally-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 $150,000, to be repaid at 3.75%
interest, over fifteen years depending on the loan amount.
- 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 $50,000, for these
purposes. The loans are repaid at 2.25% interest over ten 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.
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. To determine what discount your congregation may qualify
for, contact the Synod's Loan Coordinator.
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.
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:
Danielle Williams at
(800) 754-0669 X 11 or at firstname.lastname@example.org