Church Investment Loan Fund (CILF)

  • Overview
  • Borrow funds
  • Testimonials
  • Invest funds

The CILF simultaneously blesses investors, borrowers, and the people served by EMM workers around the world. Here's how it works ...

... for investors: People with a heart to further the work of the church invest some of their savings in the CILF and receive interest income in return. 
 
... for borrowers: 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%).

... for mission workers: People around the world encounter Christ through EMM mission work, funded in part by a portion of the interest income from CILF loans.

Here's the back story:

The CILF has been providing a return to believers and furthering the expansion of church ministries since 1959. The fund is administered by a group of church, business, and professional directors, including respected bankers and financial managers from within the Mennonite community.

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 Securities Commission of Pennsylvania 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.

Mortgage Limits

  • 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.

Approvals
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
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%).

Points
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 2016 Prospectus form

 

 

 

Questions? Contact Donald Brubaker or Trisha Good.

Here's what recent borrowers are saying:

"EMM's CILF has been the perfect fit. We get a great rate, confidence that we're treated with integrity, and the added benefit of knowing our payments are put to further good use." — Camp Hebron

"Many factors contributed to our decision to borrow from the CILF. They included: attractive rates, a simple application and draw process, and minimal fees. The "icing on the cake" was the fact that our interest expense would help support missions." — Rosedale Mennonite Missions

"When we outgrew our initial church building in 2008, we initiated a conversation with EMM to explore financing options for purchasing a larger property and became aware of the CILF, which has been instrumental in helping us purchase our building. We are excited that the interest on the loan can be used for building God's kingdom!" — Oxford Circle Christian Community Development Association

"Borrowing from EMM's CILF has been a positive experience." — James Street Mennonite Church
 
"Our church has used CILF several times, and it has been a real blessing in helping us to advance our vision. The rates are good, and they have been great to work with. A big plus for us was in knowing that the interest on our loans was going back into a fund to help other ministries. We have been pleased with CILF and recommend this loan fund to others." — Pastor Lester Zimmerman, Petra Church
Read an article about Petra's expansion here.

What is the Church Investment Loan Fund?
The Church Investment Loan Fund (CILF) is the lending arm of Eastern Mennonite Missions. 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 lower than that of a commercial loan.

Why should I invest in the Church Investment Loan Fund?
Those who invest in the CILF support the work of the church as they also plan for their future needs. More than one thousand people have already chosen to invest their savings in these church projects.

Since 1959, EMM has been investing savings from individuals and organizations in churches, colleges, hospitals, retirement homes, schools, and church camps. Investing in these kinds of church capital projects allows people to invest in the church’s future and to avoid helping to finance military and worldly enterprises.

Our interest rates are modest, so that borrowers (young churches and other Mennonite agencies) do not need to pay us high rates for the use of these funds. We charge borrowers at least one percent above EMM's "index" (based upon the total cost of all notes payable in the CILF) to cover administration and audit expenses.

What are the current interest rates for investors?
As of February 2016, EMM offers on-demand notes at an interest rate of .25%, one-year promissory notes at an interest rate of .5%, and three-year promissory notes at an interest rate of 1.25%. EMM also welcomes interest-free on-demand promissory notes. Each of these notes has a minimum purchase price of $500.

How do I invest? What do I do next?
To invest a portion of your funds with the CILF, please fill out the Investor application form. On the form you’ll see our current interest rates, and you will indicate whether interest should be added to the principal or paid to you. You’ll need to supply your Social Security number on a W-9 form so that we can give you an annual 1099 Interest Statement for tax reporting purposes. Send the completed Investor application form, the completed W-9 form, and your check (payable to Eastern Mennonite Missions) to 53 W. Brandt Blvd., Salunga, Pa 17538. We will then send a promissory note to you, along with a prospectus.

Services may be limited in states outside Pa. If you live outside Pa., please find out your options by contacting Trisha Good before you apply to invest. 

EMM registers a prospectus with the Securities Commission of Pennsylvania annually. The CILF is not a commercial lending agency and funds invested are not federally insured.

Investor application form W-9 form 2016 Prospectus form




Questions? Contact Donald Brubaker or Trisha Good.