3 Steps to Prep for a Congregational Loan
How the BIC Foundation walks with you through every step.
Building projects and purchasing property can be overwhelming, especially when securing a loan is required. From completing the application to making the final payment, the BIC Foundation is here to walk with you through each step of the congregational loan process.
Customized Ministry Loans
For more than four decades, the Foundation has been providing customized loans to BIC congregations with the ultimate goal of reaching communities with the tangible Good News of Jesus. During the past 10 years, the Foundation issued over 50 new loans to BIC congregations across the country.
Dedicated to supporting the ministry of BIC U.S., the Foundation prioritizes the needs of each congregation throughout the loan process. We want congregations to be well-informed, well-prepared, and, ultimately, well-positioned for ministry growth as part of the Brethren in Christ family.
Loans as Catalysts for Ministry
Boards and congregants are sometimes hesitant to commit to a mortgage. Of course, many factors contribute to the wisdom of incurring such a major financial obligation, and our experienced staff are happy to help discern whether or not a loan makes sense considering numerous variables.
One cause for hesitation can be a long repayment timeline. However, as congregations thrive, we frequently see loans repaid early—often in less than half of the original loan period. While loans don’t cause congregational health, we regularly see properly timed loans contributing to healthy growth of faithful ministry.
2025 was a good example.
Three congregations paid off their loans. The first two had 30-year mortgages, one of which repaid in about 15.5 years and the other in just 7.5 years. The third had a term of 10 years and completed loan payments in just 20 months!
When God is at work, people are inspired to contribute to what he’s doing. At the Foundation, we believe this inspiration includes financial generosity to meet more than basic budget needs, providing congregations with cash flow to pay more than minimum monthly mortgage payments. The net effect of individual giving becomes increased financial capacity and ongoing effective ministry.
3 Steps When Considering a Congregational Loan
Is your congregation considering a loan for a capital project? Here are three practical ways to prepare for a future loan with the Foundation:
- Prepare and track a reasonable annual budget that accurately reflects anticipated giving and makes provision for actual expenses.
- Answer the question: How would a monthly loan payment reasonably fit into our budget?
- Seek input at the regional conference level regarding potential future capital project ideas (regional conference approval is required before new loans are approved).
- Answer the question: How will a future loan enhance, grow, and/or continue ongoing ministry?
- Identify and estimate the financial elements of the overall project need; support this estimate with quotes and/or itemized anticipated expenses.
- This information will be helpful to collect before completing loan application documents.
Whether or not you’ve completed any of the above steps, we’d love to meet with you to learn more about your congregation and explore how a capital loan could be a catalyst for growth in your ministry context.
Please contact Jonathan Owen, loan officer: (717) 796-4788, ex. 5441, jowen@bicfoundation.org
