Planning to build, expand a facility or purchasing property for your local church can be a very exciting time for the congregation! This becomes an opportunity for the congregation to join together in meeting an important goal in the life of the church.
The ABNWT District is committed to seeing your goal reached through smart planning, wise stewardship and of course, God’s blessing! As a part of the Fellowship, each congregation has the privilege of seeking financing with The Pentecostal Assemblies of Canada Pension Fund, the District’s CD & E (Church Development & Expansion Fund) or through local financial institutions. You may also want to pursue church-secured loans from individuals.
Along with the privilege comes the obligation to seek District counsel and approval. The intent and desire of the District is to help the local church set a specific amount of indebtedness without jeopardizing the future financial and ministry health of the congregation.
Churches must make application to the District Leadership Team to determine overall Maximum Indebtedness in a building project. Please contact the Director of Finance & Administration for further details.
Local Church Constitution By-Law 7 Responsibilities of Affiliation 7.5 FINANCES
7.5.1 This local church, prior to the making of application for loan from any source or incurring indebtedness on a purchase plan or otherwise when repayment is not to be made in full within 12 months of the date of the intended loan or where the intended indebtedness, together with all other indebtedness of the said local church, in the aggregate will exceed ten (10) percent of the total amount of the previous year’s gross revenues, then the local church shall consult with and obtain the approval of the district executive before proceeding with the requirements of By-Law 7.5.2 hereof.
Maximum Borrowability The principal amount shall not exceed 3 times the previous fiscal year’s qualifying income (or past 12 months in some cases) when a church is able to obtain a loan at an interest rate of less than 9%, locked in for a term of no less than 3 years, amortized no more than 20 years; or, the principal amount shall not exceed 2.5 times the previous year’s qualifying income when a church is able to obtain a loan at an interest rate of no less than 9% and no higher than 12%, locked in for a term of no less than 3 years, amortized no more than 15 years. Any church applying for a mortgage not covered by these guidelines may be considered if it is able to demonstrate that its mortgage payments would not exceed 30% of the previous year’s qualifying income.
Qualifying income – includes General Fund and Building Fund. Consideration may be given to include other income sources (e.g. Stewardship Income such as wills & estates, planned giving, and/or Rental Income). Excluded in this are Missions, Benevolence, Departments and Special Offerings.
Churches will need to provide with their application and presentation to the District Executive Committee complete financial reports for the past 3 years as well as a year-to-date financial report.
District approval will include assessment of the financial viability of the application, the construction proposal for any new buildings, and the stability of the current church pastoral leadership.
District Leadership Team, September 1998
BUILDING PROJECT APPROVAL
District Constitution Bylaw 8.2.2 Local Assemblies Building Projects
All Building Project plans or the purchase of existing buildings by local assemblies in the District shall be submitted to the District Leadership Team for approval prior to any construction or purchase.
Please contact the Director of Finance & Administration for further details.
CD & E FUND
Loans from the CAPITAL DEVELOPMENT & EXPANSION Fund are limited to Churches whose title is held in the name of the ABNWT District or in the name of The Pentecostal Assemblies of Canada.
Interest rates will be determined as per the guidelines of the CAPITAL DEVELOPMENT & EXPANSION Fund policy.
Interest rates will be set for a renewable term of no longer than 5 years. The interest rate for the first term will be determined at the time of approval or the advance of funds. Subsequent rates for each renewal term will be determined at the time of renewal. Funds will be amortized based on the terms outlined in the CAPITAL DEVELOPMENT & EXPANSION Fund policy. The maximum length of amortization is 20 years.
In accordance with the provision of this loan a lump sum amount may be pre-paid at any time without penalty.
The property title must be in the name of The Pentecostal Assemblies of Canada. The ABNWT District reserves the right to register an interest in the real property in question.
Where the borrower is approved to receive funding for construction projects, the ABNWT District reserves the right to require a legal sub-search of work completed and costs associates; or, in lieu of that the ABNWT District reserves the right to require verification of construction progress completed, prior to any advance of funds.
All loan applications (click here to download) require District Leadership Team Approval. Please ensure you have talked with the Director of Finance & Administration to ensure your request is presented at the next District Leadership Team meeting.
If you have any further questions about the process, please feel free to contact the District Office.