Church Financing

Providing Financial Assistance to Northwest Baptist Churches

The Northwest Baptist Foundation manages many types of loan funds. Some exist to provide site acquisition and building construction loans for churches. Some provide small special purpose church loans.

Site Acquisition and Construction Loans

Site acquisition loans will generally have terms up to 5 years and construction loans will have terms up to 18 months. These loan applications are reviewed and approved by the Northwest Baptist Foundation’s Board of Directors.

Special Purpose Loans

Special purpose loans can be for the purchase of church property, equipment acquisitions, and improvements to existing facilities. They can be for an amount up to $100,000 and for terms of up to 10 years. Special purpose loans are approved by the Foundation’s Church Loan Committee, which is comprised of approximately one-third of the Foundation’s Directors.

In many cases, it is required that representatives from the church meet with the Board of Directors and Church Loan Committee during the application process. The Board and Committee meet regularly in March and August of each year. Churches considering applying for financing through the Foundation should request an opportunity to meet with the Board as soon as possible so as not to cause delays.

As part of the approval process the Foundation reviews the Church’s financial information in order to determine their ability to repay the loan, using the following guidelines:

• Loans should not exceed 75% of the value of the property securing the loan, and

• Loan payments should not exceed 30% of undesignated income.
  

The Foundation occasionally works in conjunction with other financial institutions, such as Strongtower Financial, to help churches secure permanent long-term financing for their church property.

Interstate Baptist Association Loans

Churches who are members of the Interstate Baptist Association may qualify for special low-interest loans. These loans are available from a trust fund established by the Interstate Baptist Association for the benefit of their member churches. The Foundation manages this fund on behalf of the Association, and works with them to review and approve loan applications as they are received.

Why Finance With the Foundation?

Not only can the Foundation’s rates compete with most banks, but you have the satisfaction of knowing that your loan has a higher purpose. Loan interest is reinvested to finance even more church loans.

This cycle of ministry means that your loan can help your sister churches finance their needs as well. It’s the kind of cooperation Southern Baptists are famous for.