Pastors and Church Boards,

If you are considering bank financing for your local church during 2009, some of the rules have changed as we all adjust to the financial crisis.  Here is the latest data that banks are looking for before making church loans on buildings, property, or remodeling projects. There are exceptions of course, so you need to talk to a professional to be sure what the banks in your area are doing.

Financial Ratios

• Minimum of 100 giving units    
  
• Minimum of 10 years for existence for churches with a mainstream affiliation, and 15 -20 years for autonomous churches 
  
• Loan amount/gross annual income not to exceed 2.5x     
  
• Monthly debt service/giving unit not to exceed $50     
  
• Total debt/giving unit not to exceed $2,500    
  
• Annual gross income/family unit not to exceed $1,500   
  
• Annual budget/giving unit not to exceed $1,500 
  
• DSC ratio not less than 1.2x   
  
• Annual debt service/annual budget less than 35%
  
• Leverage: Total debt/total annual givings not to exceed 3x

Special thanks to Bill Youngblood and the team at Financial Network Associates.  You can email Bill directly with questions if you like at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Bill Youngblood, President
Financial Network Associates

Registered Representative of, and securities, advisory services and insurance products are offered through INVEST Financial Corporation (INVEST), member FINRA/SIPC, a registered broker/dealer and a federally registered Investment Advisor, and affiliated insurance agencies. INVEST is not affiliated with Financial Network Associates, Inc.