Need a loan to build, buy, or renovate your ministry facility?
When you borrow from the Church Investment Loan Fund, the interest you pay back supports global ministry through Eastern Mennonite Missions.
What is the CILF?
The Church Investment Loan Fund (CILF) is the lending arm of Eastern Mennonite Missions. To cover this banking function, EMM registers a prospectus with the Pennsylvania Department of Banking and Securities annually. The CILF is not a commercial lending agency. In the spirit of mutual assistance, the fund receives savings from our constituency, pays interest to these investors, and makes first-lien mortgage loans to Anabaptist churches and related agencies, usually at a rate less than commercial loans. The Investment Committee which manages this fund has no gifting or granting function since it has fiduciary accountability to each and every investor of savings.
- Our guidelines allow us to invest up to 75% of the lower of the property’s cost or appraisal.
- The loan amount should not be more than twice the annual income of the borrower.
- Total operating expenses should not exceed 90% of average annual income of the borrower.
- Looking at summarized financial reports, we calculate average operating expense less rental cost of previous location plus the amortization cost of the new loan.
Approval is given by an Investment Committee of about ten persons which meets quarterly to review applications and summarized financials. Applications should be submitted by the first of January, April, July, or October so that they can be included in the agenda packet mailed to committee members in advance of their mid-quarter meetings. Urgent approvals can usually be presented to the Committee within two weeks of application. If flexibility to our guidelines is needed, then the committee asks that even urgent requests wait until the next face-to-face meeting of the committee.
Rates are reviewed each year in April for possible adjustment. We only make adjustable-rate loans so that the committee can keep the CILF’s interest charge at least 1% above its interest cost in the portfolio. For small loans secured by only two signatures on a promissory note, the rate is .25% (¼%) above the current mortgage rate. Anabaptist churches and church-related agencies in Pa. who are purchasing or renovating facilities borrow money from the CILF at favorable adjustable annual rates (currently 3.50%).
The CILF does not charge any percentage points up front but the borrower covers all costs at settlement, which include legal fees for preparation of the mortgage, mortgage note, deed, and title insurance.
|Application for churches||Application for organizations||2017 Prospectus form|