wfn.org | Investment and Loan Program Board Approves 1998 Strategic Plan

[PCUSA.NEWS@pcusa.org]

16-January-1998 
98014 
 
    Investment and Loan Program 
    Board Approves 1998 Strategic Plan 
 
    by Julian Shipp 
 
LOUISVILLE, Ky.-Meeting here  Jan.10-11, the board of directors of the 
Presbyterian Church (U.S.A.) Investment and Loan Program, Inc. (PILP), 
approved a comprehensive strategic plan for 1998 designed to ensure the 
program's continued growth. 
 
    According to the Rev. Kenneth G.Y. Grant, PILP president and chief 
executive officer, the corporation ended last year with $9.2 million in 
investments plus $4.5 million in investment commitments - more than the 
$12.2 million goal set early in 1997, but significantly lower than the 
original investment goal of $19.8 million established when the program was 
founded two years ago. 
 
    Grant said that a strategic review of investment products and marketing 
practices has been completed so that the new corporation can garner an 
additional $11 million in investments to fund its 1998 goal of $15 million 
in loans. PILP extended $6.6 million in loans - committed or closed - in 
1997. 
 
    As part of its planning process, PILP's management team examined three 
core areas deemed critical to the plan's success: target audiences, 
products offered customers and internal operating procedures. 
 
    The plan's four objectives include 
 
    *  developing the marketing skills of the board Marketing Committee, 
       staff and volunteers 
    *  selling investments that provide church growth 
    *  selling church development loans that attract investors 
    *  creating processes and materials for marketing programs. 
 
    "We are excited about our 1998 marketing plan," said Dianne M. Wheeler 
of Palmyra, N.Y., the program's Marketing Committee chair. "We're 
optimistic and confident that our plan will be successful." 
 
    But approval of the comprehensive plan by the program's board did not 
come without debate, particularly between members of the Finance and Loan 
Committees. The board approved locking in a two-year, fixed interest rate 
on loans of $1 million or less at the date of closing, but a Finance 
Committee member cautioned that by doing so PILP's corporate flexibility 
could be reduced, particularly in the area of interest rates. Changes to 
the program's offering circular will be distributed in May. 
 
    "This marketing plan will sell loans, which is the priority of this 
board," said Ray U. Tanner of Jackson, Tenn., PILP's Loan Committee chair. 
"I agree that it's probably not the best time to lock in [interest] rates, 
but we've missed some loan opportunities last year and we've got to build 
in some comfort areas for our [borrowers] if we're going to be standing 
next year at this time with a good record." 
 
    Richard B. Lohrer of Palos Verdes Estates, Calif., PILP's Finance 
Committee chair, said floating interest rates can either increase, decrease 
or remain level, but by fixing rates, PILP's profit margin could  narrow. 
While established banks and other lending institutions have huge capital 
assets that enable them to negate financial risk, Lohrer said, PILP is a 
new corporation with only $3 million in capital assets. 
 
    "My responsibility as chair of the Finance Committee is to make the 
board aware of the ramifications," Lohrer told the Presbyterian News 
Service. "We can't forecast what interest rates will do. If rates go down, 
then these people whose loans are locked in will refinance and we won't 
capture the greater market. Then again, if rates go up, we could be locked 
in for as long as two years. We're in a period of time where interest rates 
have been remarkably level. But the odds of them not changing are slim to 
none." 
 
    Jim Marchal, PILP's marketing director, said that since November's 
board meeting PILP has finalized a strategy and tactics for 1998 mortgage 
sales and investment prospect building. 
 
    He said PILP will launch a series of presentations to its best 
prospects during the next month and southern California will be a focus. In 
early March, a training seminar for congregational leaders from existing 
and new customers will also be held. Marchal said key presbytery and synod 
representatives will be asked to participate in the planning and 
implementation process of the seminar. 
 
    While change remains the only constant in the finance and investment 
world, one thing remains clear: Church officials continue to hold high 
hopes for PILP. Created by the 207th General Assembly (1995), the program's 
mission is to provide new sources of  funding for church development for 
congregations, governing bodies and other institutions related to the 
PC(USA). The program is governed by its board of directors, who report to 
the General Assembly through the General Assembly Council (GAC). 
 
    "I am very satisfied with what I see in [the program] and also the 
relationships that have been built over the last two years," said the Rev. 
Frank Diaz, GAC interim executive director. 

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