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Church Loans 101: How to Get Started

February 12, 2021

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You’ve been working hard for years to grow a church, and now you have a thriving congregation. You have regular attendees and you’re ready to take the next step to bring your ministry to a higher level. Maybe you want to improve the building you’re in, or to buy your own building for the first time. How do you get the capital to do that? A church loan can help.

First, you’ll need to decide with church leadership what your vision is for this season of growth.

  • Have you been sharing space with another church or other organization and now you’re ready to make the move to your own building?
  • Has your ministry outgrown the building you now own, and you need a larger one?
  • Is your current building in need of significant repair or safety upgrades?

Christian Community Credit Union makes loans to churches for:

  • purchasing land or church property
  • refinancing existing loans (including cash out for reasonable purposes)
  • construction loans for new buildings

We also make loans to churches to buy major equipment. This includes solar panels, as well as furniture, fixtures, and equipment (FF&E).

How Much Is Too Much to Ask For?

It’s important not to burden your church with more debt than it can handle. That’s why loans should usually be limited to no more than three times your ministry’s usual operating income.

How Do We Figure Out Operating Income?

To figure out your operating income, DO count:

  • Giving income
  • Income from other activities (schools, daycares, etc.)

DON’T count:

  • Special capital or building campaigns

Of course, every situation and every ministry are different, so don’t hesitate to ask any questions you have about this.

Which Documents Will We Need?

In order to start the loan process, you’ll need to get together some of your ministry’s important financial documents. This will include at least the last three years’ worth of:

  • Income statements
  • Balance sheets

It’s also a good idea to include your church’s bylaws and/or articles of incorporation. These are important to show the structure and governance of the church.

If these documents look good, then your lender will likely ask for more. Here are some tips to help you get your important documents ready.

What about our church’s school (or daycare facility)?

If your church operates a school or daycare, you’ll need to provide information on the school and/or daycare’s organizational structure. You’ll also need to show their contribution to the ministry’s finances.

Want to know more? Contact the Ministry Development Group at 909.495.8346.

Apply for membership by opening a deposit account or applying for a loan!

Have a question? Call 800.347.CCCU (2228)