Interest Rate – The variable interest rate will be established every April 1st. It will be tied to the 10 year T-bill interest rate on the last working day of March each year plus 50 basis points rounded to the next 0.5% (example, 5.6% + .5 =6.1%, rounded to 6.5%). Maximum rate cap is +6.0% from the original loan.
Amortization Schedule – Maximum 20 years with no pre-payment penalties.
Maximum Loan Amount – Maximum for any one loan up to 75% of the cost of the project, but not over $200,000.00.
Local Participation – 25% of the total project costs, regardless of the amount, must be generated by the congregation through other philanthropic sources. Other loans do not apply to meeting the local participation requirement.
Types of Projects – Permanent and/or interim financing for capital projects (renovations, new building and expansion) and acquisition (land and building). Loans for refinancing existing debt shall NOT be permitted. Current Larger Life Foundation loans will be provided the opportunity to re-negotiate terms to conform with these policies.
Maximum Amount of Outstanding Loans – No greater than 10% of the net asset value of the Larger Life Foundation portfolio shall consist of outstanding loans.
Collateral – The Book of Order of the Northern Province will dictate this.
Expenses – Any expenses related to executing a loan agreement are to be paid by the church requesting the loan. In the event the church is unable to pay the expenses, the costs will be added to the loan amount.
Eligibility – All Northern Province churches listed in the Annual Directory are eligible to apply for Larger Life Foundation loans.