wfn.org | PC(USA) loan programs combine resources, operations

[PCUSA NEWS <PCUSA.NEWS@ecunet.org>]

Note #6142 from PCUSA NEWS to PRESBYNEWS:

4-August-2000
00279

Debt consolidation

PC(USA) loan programs combine resources, operations

by John Filiatreau

INDIANAPOLIS, Ind. -- The Presbyterian Church (U.S.A.) Investment and Loan
Program (PILP) and the General Assembly Council's Mission Development
Resources Committee (MDRC) have joined forces to simplify the borrowing
process for congregations and governing bodies.
	The action, which came during a joint meeting here July 21-22, means that
borrowers now can make a single application for loans funded by both
programs, and that only very large loans will require funding from secular
sources.
	The coordinated program has loaned or committed to loan more than $143
million and is expected to originate another $15 million by the end of 2000.
It now has a capacity of more than $175 million.
	"The GAC and the Investment and Loan Program have simplified the borrowing
process for congregations and governing bodies," said Kathy Lueckert, deputy
executive director of the GAC. "Staff of both programs now occupy the same
space at the Presbyterian Center (in Louisville), and funds are disbursed
and loans are repaid with a single check."
	Kittie Carland, chair of the Mission Development Resources Committee, said
the action came after executives of the two lending programs devoted
"several years" to "exploring, planning and praying together."
	"A vision has been fulfilled, joining the two loan programs as partners to
better serve the church," she said. "Congregations can expect friendly,
efficient help in securing loans to carry out their mission goals."
	The chair of the new Joint Loan Committee is the Rev. James Lappen, of
MDRC; the vice chair is Molly Baskin, of PILP.
	The realignment does not change the governance of the PC(USA) loan
programs. The MDRC, part of the National Ministries Division, sets policy on
the use of church-loan funds. PILP determines how investor funds may be
used.
	"The alignment of the programs opens the door to the Presbyterian Church
being able to meet ninety-eight percent of the church's loan demand," said
Ben McAnally, the chair of PILP's board. "We welcome the opportunity to be a
resource to every congregation in borrowing need."
	In a separate action, PILP's directors changed its loan policies to
increase rebates to borrowers. Through the "Get the Point" program,
congregations can now earn interest rebates on construction loans, just as
they do on mortgage loans. The rebate, which is based on the amount of
investment made in support of a loan, can be as much as one percent of the
average outstanding balance during a calendar year. The average borrower
collects a rebate of 50 basis points -- one-half of one percent per year.
	PILP President Ken Grant said borrowers will earn a total of $59,000 in
rebates during 2000, a 125-percent increase over 1999. He said the "Get the
Point" rebate can drop the cost of new borrowing to 7.75 percent.
	McAnally said PILP is "preparing to move into profitability," and the
program's unaudited financial reports indicate that it is running ahead of
its business plan.
	Baskin said program staff are tracking a persistent, rising demand for
credit.
	"Growing churches are improving their physical space to meet mission
needs," she said. "These borrowers are challenging investors to meet the
need by purchasing investments through the Investment and Loan Program."
	Grant said investments in his program are growing by 40 percent per year.
	PILP is a non-profit corporation of the PC(USA) that sells investments --
certificates, notes and other financial instruments -- to church members and
contributors, and lends money to congregations, governing bodies and other
PC(USA) agencies and institutions.
	For more information, call National Sales Manager Ben Blake at
1-800-903-7457, extension 5865, or visit www.pcusa.org/pilp on the World
Wide Web.

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