wfn.org | Presbyterian Investment And Loan Program Continues to Soar

[PCUSA.NEWS@pcusa.org]

22-January-1997 
97030 
 
                Presbyterian Investment And Loan 
                    Program Continues to Soar 
 
                         by Julian Shipp 
 
LOUISVILLE, Ky.--The new Presbyterian Investment and Loan Program, Inc. 
(PILP), continues to soar, according to officials attending the 
corporation's board of directors meeting here Jan. 4-5. 
 
     "I am extremely excited about PILP," said the Rev. Frank Diaz, General 
Assembly Council (GAC) interim executive director. "This is a key 
ingredient in the life of our denomination." 
 
     The Rev. Kenneth G.Y. Grant, PILP president and chief executive 
officer, told the board that recent upheavals in Corporate and 
Administrative Services (CAS) -- specifically the resignation of G.A. 
"Pat" Goff as CAS director  and the implementation of the Lawson accounting 
system reported in "NEWS BRIEFS," Jan. 10, 1997 -- "are not material to the 
services provided [by PILP]." 
 
     Elaborating on this, Grant said PILP is a new corporation with a 
beginning corporation's needs.  He said the number of PILP transactions 
recorded to date is limited and the Lawson accounting system is easily 
tracking these transactions. 
 
     "Intuitively, this [assumption] is reasonable," Grant said. "However, 
the Investment and Loan Program's management was not satisfied with a 
reasonable assumption. It tested the accounting system with the help of an 
independent auditor. The corporation's financial controls -- both the 
Investment and Loan Program and the Presbyterian Church (U.S.A.), A 
Corporation -- were examined and found able to meet our needs." 
 
     Grant said investors and loan applicants can count on PILP for 
diligence and close attention to detail and added that the program's board 
of directors is intent on developing new resources for the capital needs of 
congregations. "That's our mission, that's our investors' mission," Grant 
told the Presbyterian News Service. "Financial controls are in place so 
that the focus can be on mission." 
 
     PILP offers Presbyterians investment certificates  that pay rates 
comparable to those earned on CDs. The invested funds are used to provide 
loans to congregations for new church development, renovation of existing 
church buildings and the construction of new buildings.  PILP lends 
construction money to churches at rates generally lower than those charged 
by commercial banks. 
 
     PILP has authorized its first two loans: to Grace Covenant 
Presbyterian Church of Orlando, Fla., for renovation of its facilities; 
and to Central Florida Presbytery for its new church development in 
Disney's Celebration community. 
 
     Moreover, the Synod of Lakes and Prairies made the first investment by 
a middle governing body to PILP in the amount of $100,000.  Since November, 
five governing bodies have joined PILP's family of investors. 
 
     Beyond the investments of individuals and middle governing bodies are 
two significant investments from the General Assembly Council and the 
Presbyterian Foundation. Each has committed up to $5 million to help endow 
PILP. Grant said both commitments have been structured to provide PILP with 
maximum flexibility to meet the needs of local congregations that wish to 
build or renovate buildings and borrow from the Investment and Loan 
Program. 
 
     As of Nov. 30, 1996, PILP reported assets of more than $8 million, not 
including the Foundation and GAC contributions. Investments totaling 
$398,000 were received in December and additional investments have been 
received since the beginning of the year. 
 
     By press time, PILP had received investments of more than $686,000 
from individuals, churches, presbyteries and synods. But, officials say, 
these investments were received from persons and churches located in only 
nine states. PILP's $1 million general offering began Jan. 1. 
 
     As of Jan. 13, Grant said, the general offering is registered in 35 
states.  Grant said the PILP board and management are committed to 100 
percent registration -- all 50 states plus Puerto Rico and the District of 
Columbia. 
 
     However, since PILP's general offering just hit the streets, Grant 
said, it's too early to report on at this time. The general offering is 
designed to meet the investment needs of  Presbyterian individuals and 
congregations. Presbyteries and synods can invest at any time through 
depository accounts that are not governed by the offering circular. 
 
     Presbyteries or synods wanting to invest may call PILP at 
1-800-903-PILP. 
 
     According to Grant, the average individual investment during the month 
of December was in the thousands, not the tens of thousands, suggesting 
that "real Presbyterians with real money to invest see the vision of a 
growing denomination and wish to participate." Grant said he finds it 
interesting that PILP is appealing to "real people sitting next to you in 
the pew," adding these folks are committed to building the church of the 
next century, even though many of them may not yet have large amounts of 
money to invest. 
 
     In another significant development, Grant said, PILP hopes to cement a 
new relationship with the GAC's long-standing Church Loan Program (CLP) at 
a meeting to be held Feb. 27 in Seattle. The meeting is designed to 
continue development of cooperation and build relationships among the 
management, board and/or committee of both programs. 
 
      Lodged in the National Ministries Division's Evangelism and Church 
Development Program Area, CLP has a rich history of providing 
below-market-rate loans to churches. CLP is funded by restricted 
endowments. 
 
     However, the 207th General Assembly (1995) decided the development 
activities of CLP could best be extended and operated through a second loan 
program -- PILP -- that combined the lending of money for capital needs 
with the ability to raise funds through investment opportunities. 
 
     Grant and Jerie Briton, PILP's marketing director, said PILP is 
presently involved in extensive long-term marketing strategies. Among them 
is the "Get the Point" program, which will be introduced this winter. 
Through the program, a congregation can receive an annual rebate of up to a 
1 percent equivalent reduction from its interest rate. 
 
     Here's how it works. If a congregation has borrowed $500,000 at 8.125 
percent and has participating investments in the program equal to $500,000 
for each month of the year, the effective interest rate, with the annual 
rebate, drops to 7.125 percent. Participating investments can come from any 
cooperating Presbyterian individual or  entity. So, for instance, a 
congregation in Tallahassee may have participating investors from Seattle 
to San Juan. 
 
     If a congregation doesn't have investments equal to 100 percent of the 
mortgage, there are additional break points at 75 percent and 50 percent of 
the face value of the mortgage. The annual rebate is accrued one month at a 
time -- so that a congregation that reaches the 50 percent point for two of 
the 12 months gets a rebate package prorated for the two months. 
 
     For more information about the "Get the Point" program, call 
1-800-903-7547. 
 
     "Check out the activity," Grant said. "Hundreds of churches across the 
country have a vision for the turning of the millennium. New sanctuary 
space. Renewed education rooms. The Christian life facility long dreamed 
of. A mission site that reaches the hungry or the homeless. 
 
     "Bricks and mortar are in motion," Grant said. "If we provide an 
investment for the church of the next generation, the leaders of 
congregations across the country are ready to move." 

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