Interest Free Loans

Interest Free Loans For Special Situations

Limited financing is available to qualifying congregations and regions that are listed in the Year Book and Directory of the Christian Church (Disciples of Christ). Interest free loans are available for new church sites, first units, certain minority situations, natural disaster emergencies, certain off-continent situations and intentionally integrated congregations.

Interest Free Loans

Interest free loans are made from a pool of gift funds designated for this purpose.

Interest Free Loan Guidelines

As a condition of receiving an interest free loan, the borrower is to agree that if, during the life of the loan, the congregation ceases to be recognized as an active congregation in full fellowship with the Christian Church (Disciples of Christ), all interest forgone during the period of interest free funds shall become due and payable and added to the final loan repayment.

Ownership of property on which interest free loans are made

A regional or other sponsoring organization is generally expected to hold or share title to property for a new congregation receiving an interest free loan.

Interest Free Loan Fund

• New congregations:
  • Loans made to Regional units or similar sponsoring bodies.
    • 50% of loan interest free up to $37,000 for site purchase.
    • 50% of loan interest free up to $75,000 for new construction.
    • Maximum interest free loan for any one beneficial borrower is $75,000.
  • Existing interest bearing loans may be amended to interest free for up to five years.
  • Loans made to congregations - 50% of loan interest free up to $37,500 for first unit construction
  • Maximum term of interest free - five years.
• Emergency situations:
  • Natural disasters. (Typically flood and earthquake - up to $37,500 interest free
  • Maximum term of interest free - five years. (Note: Following the five year term, the remaining balance will become an interest bearing loan at then current rates.)
• Existing racial/ethnic congregations - 50% interest free, up to $37,500, to congregations with up to 200 participating members and with annual income of $50,000 or less.

   Interest Free Loan Fund for Integrated Congregations

• Loans up to 50% interest free and up to $25,000 total of all loans.
• Available to congregations that are by their intention meaningfully multi-cultural, and preferably with multi-cultural staff.
• Loans made for capital purposes.
• Maximum interest free term - five years.

Interest free loans to congregations in Puerto Rico

• Established congregations with annual gross income of less than $50,000 and with fewer than 200 members:
  • 50% of a proposed loan of up to $50,000 may be made interest free.
  • Maximum interest free term - five years.
• Newly established congregations:
  • 100% of a proposed loan of up to $50,000 may be made interest free.
  • Maximum interest free term - five years.
• The interest rate following the initial interest free period is 1% above the published rate for Church Extension demand investment notes for the normal period of maturity extension (currently three years). Thereafter, loan maturity extensions are at then current rates.