Church Loans

Churches have special needs and concerns that are addressed by some lenders who offer church loans. Being a unique type of business, special consideration has been given to churches in order to come up with programs that work. Any type of equipment may be approved for financing. Some of the special requests from churches include pews, organs, pianos, video equipment, and computers.

Categorizing Church Loans

Some lenders have separate programs based upon size of the church and length of time they have been operating. Large established churches would receive the best rates. Requirements might include being established seven years or more and maintaining a minimum bank balance. Another requirement is that the church be listed by phone directory assistance.

Newer churches qualify for their own program if they have been operating two to five years. They too must maintain a minimum bank balance and be listed by directory assistance. A new church wishing a start-up loan would qualify for a higher interest rate. Maintaining a minimum bank account balance is usually required for new church loans, but the amount would be less than what is required for an established church.

Church loans are similar to other small business loans and follow many of the same rules. Funds may be used for equipment, expansion, working capital, and other uses. Lenders will provide expert advice on all financing questions and concerns. With the right information, they can work out a customized program that will work for any church.