Managing the investments of the denomination is one of a variety of responsibilities of the Trustees of Synod. Some of the funds invested are made available as loans primarily to help congregations purchase or improve their facilities, purchase a parsonage, or to help pastors with the purchase of a home. The RPCNA once had a separate Board of Church Erection that granted loans. Several years ago, the duties of this board were given to the Trustees of Synod. A “revolving” loan fund was created, now called the Building Loan Fund.

Building Loans

There are specific guidelines for loans from this fund, but in general the maximum size of a loan is $80,000, which is not to exceed 70 percent of the cost or appraised value of a church building project. Currently the funds are loaned at an interest fate of 4 percent for up to 20 years. Individual pastors who are purchasing a home may borrow up to $10,000, not to exceed 50 percent of the value, at an interest rate of about 1 percent below prevailing market rates for a maximum period of 10 years.

As with any loan, an application must be completed giving a description of the building to be funded as well as complete budget information indicating the ability of the borrower to repay. This application must first be approved by the presbytery of the borrower before it is submitted to the Trustees of Synod. Presbytery’s responsibility is to give serious consideration to the wisdom of the loan. A subcommittee of the Trustees evaluates the application after it is received and communicates with the applicant as needed in order to determine if the loan can be made.

The Building Loan Fund has grown over the years in two ways—from the interest that has been paid on the loans made, and from a portion of the proceeds from the sale of closed congregations. This has allowed the Trustees to increase gradually the maximum size of the loans that can be made. Since this is a revolving fund, loans are made only as money is available and repaid from existing loans; hut in recent years finds have been adequate for most requests. These low-interest loans have been a tremendous blessing to many congregations over the years, and are a tribute to those who established the fund and its guidelines.

In many instances, the total cost of the building project or home exceeds the maximum allowable loan from the Building Loan Fund. When this occurs, a congregation or a pastor may request additional funds as a General Investment Loan.

General Investment Loans

These loans, which are limited in size primarily by the value of the property are available for up to 20 years at an interest rate slightly below prevailing market rates. The combined total of loans from the Trustees is not to exceed 90 percent of the cost or appraised value of the project, and borrowing a much lower percent than that is recommended. The same loan application procedures are followed as for Building Loan Funds, and applications are carefully considered by a subcommittee of the Trustees.

Borrowers

Sometimes those who apply for loans may feel that they are being asked tough questions, but the goal is to help the congregation or individual avoid placing themselves in situations that may lead to financial hardship within a few years. Most borrowers repay on schedule, but the Trustees have had the difficult task of dealing with some who are not able to make payments. Synod’s Trustees want to assist the growth of the church and the spread of the gospel and along with that is the need to he wise stewards of resources. Some new building projects or existing facility purchases are being considered, and the Trustees are thankful to be able to assist. More specific information is available from the Trustees office which can be contacted at 412-731-1177, via e-mail at rptrustees@aol.com, or by mail at 7408 Penn Ave., Pittsburgh, PA 15208.