What kind of loans does the MDC Program make and to whom?

The MDC Program offers loans to churches and related entities to build, renovate, expand, acquire property, or refinance. Loans may be for construction, bridge, permanent or a combination depending on what fits best. We also offer emergency repair loans and a line of credit (PAL) loan.

Briefly describe the process for securing a loan.

The best loan involves advance planning and leadership from the church. The first step is to contact the MDC Program staff that has over 30 years of experience including 20 years of experience working with Presbyterian churches designing loan programs individually tailored for a particular church.

How many loans does the MDC Program hold?

14. Overall, we have made over 300 loans to churches of all sizes. We have also loaned money to Tall Timber and Camp Spalding, Whitworth University, presbyteries and synod.

What is the pay-off rate?

Loans are amortized up to 20 years. Typically, a church is able to repay the loan in 12.5 years or sooner.

What does the MDC board do when there are not enough funds available to make a loan?

If there are not enough funds available to lend at a particular moment, the board seeks to sell new investments (Mission Development Certificates) or participation with another similar organization or local bank.

Are there any loans that are in arrears? What is done in these cases?

No. In the past, presbyteries have helped a struggling church by making a portion of the loan payment. Our experience shows that a church finds itself in trouble when there is a change in the leadership with a minister’s departure or when financial transparency ceases within the life of the church and the congregation. Churches in this situation that have the active support of its presbytery or Synod fair better than those that do not.

Did you know…

We are encouraging churches to make energy improvements (Green Churches)?

We offer free financial reviews to churches if they make an investment in a Mission Development or Building Certificate?

We are available to assist churches with their capital improvement plans?

You can help lower the interest cost if your church has a loan by investing in Mission Development or Building Certificates (ask about our VIP Program)?