Examples of how churches in the conference have used loans to strengthen their ministries are provided below.
FUMC of EulessFUMC of Euless planned a major renovation project to increase the number of Sunday School classrooms and provide additional parking. After careful study, the Building Committee recommended a $1.3 million renovation and construction project to the Charge Conference.
In consultation with the CTMF, the church family launched the "Building to Share, Sharing to Build" capital campaign resulting in $630,000 pledged for the project.
The church was approved for a construction loan up to $900,000. The "interest only" payments during the construction period were well below 11% of the church's current income. As the capital campaign pledges are paid in, they are applied to the principal of the note.
After the campaign pledge period is over, the remaining balance of up to $790,000 will be financed over a 15-year period. Monthly debt payments are below 19% of the church's annual income, and additional principal payments may be made anytime without penalty.
FUMC of Euless is sharing to build adequate facilities for worship, fellowship, and education for the church family and building to share with those who will join them.
back to topValley Mills UMCValley Mills UMC was approved for a loan of $42,700 to replace the metal tile roof as one phase of the $56,700 renovation of its sanctuary and parlor. The church family had raised $14,000 toward the project. Financing $42,700 for 15 years made the church's debt payments less than 8% of its $60,000 annual income.
The transformation of the first phase of renovation sparked greater interest in moving forward. Within a few months, the church only owed $6,400 on its note. It sold some property across the road from the church, netting $51,000, and made plans for a new multipurpose hall for meetings and fellowship.
The CTMF approved an additional $63,600 in loan proceeds to be added to the church's balance of $6,400, and the new building was underway. For the first twelve months of the new note, only the interest on the actual amount of money drawn will be paid from the church budget, and any gifts toward the project will be applied to principal.
Following the construction period, the balance of the note will be financed for 15 years. The monthly debt payments will total less than 9% of the church's annual income. Additional principal payments may be made anytime without penalty.
back to topCogdell Memorial UMCCogdell Memorial UMC in Waco acquired property for a new site in 1988, and by 1996, with over $400,000 in hand, they borrowed $378,500 on a 15-year note from the CTMF to fund first-phase construction. The first phase consisted of a multipurpose center, kitchen, offices, and Sunday School classrooms.
The church family continued to make special gifts to the building fund and paid off the 15-year note in less than 5 years. The Building Committee had already been at work planning for the ultimate construction of a beautiful sanctuary, which would be the church's first formal sanctuary.
In 2002 the Cogdell family engaged the CTMF to lead them in the "Faith In Action" capital campaign for the sanctuary. Because the project would be the largest they had ever attempted, a five-year pledge period was adopted for the campaign. A generous total of $558,770 was pledged (2.34 times the church's annual income).
The $1.182 million sanctuary project was begun with a CTMF construction loan of up to $995,000 with interest-only payments for 24 months. That period will give the church family time to pay on its campaign pledges to be applied to the project and to the loan.
After the 24-month period, the construction loan will be converted to a permanent loan of up to $794,000 and amortized over a length of time that will keep debt payments below 25% of the church's annual income. As always, any extra amounts may be prepaid on the loan without penalty.
back to topFUMC of EnnisFUMC of Ennis conducted a Stewardship Ministry Program with the Central Texas Methodist Foundation in 1999. The church celebrated a 25% increase in annual giving that demonstrated growing faith and stewardship commitment. First Ennis followed with a second Stewardship Ministry Program and continued to see growth in giving.
Then the church conducted a capital funds campaign, receiving pledges for over three times the church's annual income. More commonly, a church expects to raise 1.5 to 2 times its annual income, but the Stewardship Ministry Program for annual giving had made a great difference in preparing the church family to make generous capital commitments.
The capital campaign pledges of $1,040,000 toward the church's $1,650,000 Family Life Center was a resounding success. With campaign pledge payments and a CTMF construction loan, the building project was launched. Interest payments on the construction loan were estimated to be 16% of the church's annual income.
After construction, the permanent loan balance of $800,000 with 15 years to pay will permit the church to keep debt payments at 25% of the current income.
Now, in 2003, the church is preparing for its fourth Stewardship Ministry Program with the CTMF. Making Disciples involves nurturing church members' faith journey, and the Stewardship Ministry Program is a vital part of that journey.
back to topLaurel Street UMC, DublinLaurel Street UMC in Dublin desired to enlarge its fellowship hall to better accommodate meetings and programs. The church inquired about a loan to help achieve its goal. With an annual income of $10,000 to $12,000, the church had no debt and had accumulated $5,100 toward its $17,100 project. The church requested a loan repayment period of six years, which made its debt payments equal to about 23% of its annual income.
After the loan was installed and construction was underway, the church learned that an additional expense of $8,000 was necessary to complete their project properly. A representative of the church called CTMF with the request. The loan was modified to increase the amount, and repayment time was extended to 10 years for a monthly payment within the Foundation's 25% of current income requirement.
CTMF is grateful to serve the Laurel Street UMC family with this loan, which provides an inviting church home for the congregation and those they invite to Christ and His Church.
For more information, contact the Foundation.
