Investment Fund

INVEST

Please read this information carefully as it outlines a major change to the Investment Fund.

The EMM Investment Fund has served Eastern Mennonite Missions and its patrons well over many years since its inception. We have greatly valued the partnership between investors and EMM, which has given access to capital funds for churches and church agencies for nearly fifty years.

However, there comes a time when wisdom and discernment lead us to make a change. The EMM Board of Directors has decided to bring this specific ministry to an end.

Why would we do this? Let us highlight a few reasons:

  • The purpose of the fund has drifted somewhat from its original purpose and now tends to operate in competition with banks and credit unions rather than as a service to those who may find loans hard to obtain.
  • The demographics of current investors continue to age while younger investors are quick to “shop around” and seek better returns on their investments.
  • The total amount of the fund has substantially decreased over the past decade which significantly reduces the financial benefit of operating the fund.
  • The regulations of running an investment fund (as determined by the Pennsylvania Security and Exchange Commission) increase the administrative demands and requirements to keep the fund operational.

Together, these dynamics have gradually moved us (EMM staff and board) toward making the difficult decision to close the EMM Investment Fund over the next three years. To this end, after April 19, 2024, we will no longer offer new or renewed investment notes.

Be assured that EMM is very grateful for your deposits, which combined with others, have provided dozens of new loans to churches and church agencies over recent years. Thank you very much for partnering with us to help make these capital projects possible! 

If you have any questions about this process or your investment account(s), please contact Steve Martin.

The securities are offered in the Commonwealth of Pennsylvania alone, and hence, unavailable in all other States separate and apart from the Commonwealth of Pennsylvania. This is neither an offer to sell nor a solicitation of an offer to purchase the securities, and the securities may not be sold in the States of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, or any other jurisdiction under the preview of any federal, state, or political entity’s or subdivision’s law, rule, or regulation that would prohibit or make illegal the sale of such securities.

Subject to the above limitation, this offer is further limited to persons who are, prior to the receipt of this Prospectus, members of, contributors to (including investors in) or participants in Anabaptist Churches or in Eastern Mennonite Missions or in any program, activity or organization which constitutes a part of the Anabaptist Churches or Eastern Mennonite Missions or in any other church organizations that have a programmatic relationship with the Anabaptist Churches or Eastern Mennonite Missions.

As a further notice, these securities have not been registered with the United States federal government as under the Securities and Exchange Act of 1933, 1934, or any other applicable federal law. These securities are registered with the Commonwealth of Pennsylvania pursuant to Section 1-206 of Pennsylvania Securities Act of 1972. However, any registration with the Commonwealth of Pennsylvania and its Department of Banking and Securities in no way is an approval, endorsement, or verification of the securities by the Commonwealth of Pennsylvania, its Department of Banking and Securities, or any other person or entity associated or affiliated with the Commonwealth of Pennsylvania.

BORROW

Need a loan to build, buy, or renovate your ministry facility?

When you borrow from the Investment Fund, the interest you pay back supports global ministry through Eastern Mennonite Missions.

What is the Investment Fund?
The Investment Fund 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 Investment Fund 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 Investment Fund’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 0.75% (3/4%) above the current mortgage rate. Anabaptist churches and church-related agencies in Pa. who are purchasing or renovating facilities borrow money from the Investment Fund at favorable adjustable annual rates (currently 4.75% for new mortgages). 

Points
The Investment Fund 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.

CONTACT

Questions? Contact Steve Martin.