wfn.org | PILP Reaches $10 Million Mark Ahead of Schedule

[PCUSA.NEWS@pcusa.org]

30-July-1997 
97299 
 
      PILP Reaches $10 Million Mark Ahead of Schedule 
 
    by Julian Shipp 
 
LOUISVILLE, Ky.--The total balance sheet of the Presbyterian Investment and 
Loan Program (PILP) has reached the $10 million mark ahead of schedule, 
according to officials. 
 
    The Rev. Kenneth G.Y. Grant, PILP president and chief executive 
officer, said that management and directors of PILP initially predicted the 
corporation's balance sheet would total $10 million by the end of July. 
 
    "We beat the prediction," Grant told the Presbyterian News Service. 
"Our total balance sheet is now just shy of  $11 million." 
 
    Hailed as a denominational success story since its inception in 1996, 
PILP has now invested more than $4.1 million, and the total number of 
investments has surged beyond 160. Grant said two very different and 
committed types of investors are now stepping forward to build the future 
of the church. 
 
    To date, individual investors have invested $813,000. These investors 
are people from all walks of life from congregations in all parts of the 
country -- individuals, Grant said, who have invested amounts up to 
$100,000. 
 
    "More importantly, we continue to see that support of the church's 
future through investments in not for the wealthy only," Grant said. 
"Individual investors step forward with investments beginning at $1,000. 
People step forward because [PILP] puts investors in direct contact with 
borrowing congregations. The relationship that develops brings great 
satisfaction from real knowledge of the church-building mission their 
investments support." 
 
    Grant said that to date 20 PILP "Partners in Mission" have invested 
more than $3.3 million. These partners are congregations, presbyteries, 
synod and General Assembly entities. Grant said PILP has heard three 
stories from its partners. One: PILP is an exciting place to "store" money 
until it's needed. Two: PILP provides a great investment opportunity that 
offers congregations  inexpensive mortgage money. And three: PILP's 
partners are stepping forward because PILP offers churches growth 
investment. 
 
    "Each investment helps the PC(USA) grow church by church, building by 
building," Grant said. "Each investment improves the probability that those 
who have not met Jesus Christ will do so. Our investors are faithful and 
committed Christians who want to share the good news." 
 
    Grant said PILP's present loan assets total $5.3 million and the 
program's 1997 loan underwriting total is $1.85 million. To date, PILP has 
committed to nine loans not yet closed totaling $7.5 million. 
 
    "Our loan underwriting standards are top quality -- consistently," 
Grant said. "We simply offer a great mortgage for local congregations 
[that] want to grow." 
 
    Grant said congregations that receive PILP mortgages can count on low 
interest rates. Since PILP began underwriting mortgages, its loan interest 
rate has remained at 8 percent with incentives that allow a congregation to 
reduce the effective mortgage rate to 7 percent -- something that has not 
changed since PILP began. 
 
    On the investment side, PILP continues to offer investors attractive 
returns on their investments from both a financial and a mission 
perspective. The past 10 months reflected slight fluctuation in the market 
on CD interest rates. Since PILP's rates are determined by the average CD 
rates of the top 100 U.S. banks, its rates have followed market 
fluctuations. 
 
    For example, Grant said, PILP's current fixed rate for July on a 
one-year investment is 5.25 percent APY (annual percentage yield) and for a 
five-year investment is 5.84 percent APY. PILP's net cost of funds has 
remained relatively constant, so while investors earn competitive interest 
rates, congregations continue to benefit from inexpensive mortgage rates. 

------------
For more information contact Presbyterian News Service
  phone 502-569-5504             fax 502-569-8073  
  E-mail PCUSA.NEWS@pcusa.org   Web page: http://www.pcusa.org 
  mailed from World Faith News <wfn-news@wfn.org>  

--