Loans for capital projects such as new space for programs or services, renovation and upgrading of facilities, housing for staff, and purchase of computers, technology, etc.
If your project depends on a successful application, you are strongly advised not to sign contracts, begin construction/renovation, or make final commitments until the decision of the Financial Support Group (FSG) has been communicated by your Conference office. The FSG generally meets monthly to make decisions on applications.
Communities in Ministry (CIM) has set aside funds for capital assistance to United Church Education Centres, Camps, and Retreat Centres. Funds for loans are according to the following policy:
- Financial assistance loan will normally be provided for up to 50% of the total capital cost of the project, to a maximum of $50,000.
- Loans will be secured by appropriate documentation:
- Agreement to Repay, signed by the trustees, setting out the terms and conditions of the loan agreement. This legal document contains all the pertinent information about the loan that is being accepted by the congregation.
- Certificate and Declaration of Trustees, which set forth the terms and conditions of the document, including the title to property, liens and encumbrances, and fire insurance details, along with specific agreements relating to further encumbrances to the property.
- The average loan carries a three-year term and is amortized over 15 years, with a current interest rate of 2.0%. The first year of the loan is interest-free, with the full amount of the blended payments being applied against the principal balance of the loan. Any loans that are carried for more than a single term will be subject to a review of the loan at the end of each term, as well as a review of the interest rate in effect at the time of renewal.
- Loan repayments are due monthly until the loan is paid in full. Lump sum payments can be made to the principal loan without penalty. Two methods of repayment are available:
- a series of post-dated cheques for at least 12 months
- Pre-Authorized Remittance (PAR)
- Up to $4,000 in dollar-for-dollar matching grants are available to United Church camps and retreat centres for work that is not yet done.
- The grant must be used for capital improvements to the grounds or buildings. It cannot be used for operating expenses.
- All applications must be processed through and approved by presbytery and/or Conference before coming to the General Council. Your local Conference office will be notified of decisions.
- Application requirements
- balance sheet and operating statement for the previous year
- projected statement of operations for the current year
- detailed description of the project for which funds are requested, including appropriate plans and drawings
- presbytery and Conference approval/signatures