Loans and Grants

What Is the Capital Assistance Fund?

The purpose of the Capital Assistance Fund is to provide financial assistance for the renewal and development of congregations, camps, education centres, community ministries, and chaplaincies. Assistance is available in the form of loans and targeted grants for eligible pastoral charges/congregations and other ministries that would otherwise be unable to undertake or complete these projects.

Low-interest loans are the main way the church invests in local projects. The ability to repay a loan is obviously a key factor. In this way, money is “recycled” for use in various ministry situations. Loans of more than $50,000 are secured by mortgage.

Some grants are available, especially in financially limited situations. Please check the eligibility criteria carefully, since monies are intentionally targeted toward smaller mission units.

Top

Application Process

All applications for loans and grants require the approval of appropriate partners at presbytery/district and Conference. When major projects such as substantial building renovations or new facilities are contemplated, it is wise to also consult directly with both Conference and CECM staff.

Your Conference office will help you

• if you need clarification or interpretation of Capital Assistance policies
• if you need paper copies of the application forms
• to determine to whom and when your application should be sent for presbytery review

Completed, duly approved applications are sent to the Financial Support Group (FSG) at the General Council Office. FSG generally meets monthly and makes decisions on all completed applications in accordance with policy guidelines.

Applications may be submitted to the Financial Support Group (FSG) at any time during the year. The FSG refers to the Mission through Finance (MtF) Advisory Group any CDF loan applications and capital assistance requests that fall outside of policy.

Any capital project is an opportunity to rethink ministry. It is also an opportunity to challenge dormant or inactive members to renew their participation in the life and ministry of the congregation and God’s mission in the world. The policies for these programs reflect a desire to share the resources of the church and to prevent the burden of excessive debt from stifling mission. Your feedback is welcome. Many recent changes to the program have been made in response to feedback received.

Top

Capital Assistance Fund

The fund is made up of the following categories, each described in more detail and having a separate application form:

• Capital Loans for Pastoral Charge or Congregation (CA2: loans up to $150,000)
• Congregational Development Fund (CDF) (CA3: loans up to $500,000)
• Modernization and Improvement Grants for Church/Manse (CA4: maximum of $5,000, targeted to small congregations with limited financial reserves)
• Technology Grants (CA5: maximum of $1,500 for smaller mission units)
• Education Centres, Camps, Retreat Centres (CA6/7: loans up to $50,000; limited grants up to $4,000)
• Community Animation (CA8: external application process)

Top

General Application and Eligibility Requirements

Grants and loan amounts are typically limited to a 50% matching of project cost up to the maximum allowable.

Income Ceilings

• Capital Assistance Congregational Loans have been expanded to be accessible to most congregations to a maximum annual congregation income of $300,000.
• Capital Assistance Grants are designed for modest income congregations that have an income ceiling of $150,000 and limited unrestricted reserves. To be eligible for a grant, unrestricted investments are capped at a maximum of $37,500. If reserve monies exceed this amount, the FSG will require a detailed account of the designation of these monies.
• Congregational Development Fund (CDF) and Capital Assistance Loans for education centres, retreat centres, and camps have no income ceiling.

Proof of Charitable Status

This requirement must be met by all United Church ministries. (See the Canada Revenue Agency* for your status). No funds will be granted to ministries that have had their status revoked.

One Application per Grant Type per Year

A congregation can apply for several different types of grants in a calendar year—for example, a Technology Grant, a Manse Modernization Grant, and a Church Modernization Grant.

Matching Grants and Grant Maximums

• The Church Modernization Grant assists with improvements to church buildings, such as roof repairs, water damage repairs, and replacement of windows or doors. This is a matching grant of up to $5,000 in any six-year period for modest income congregations.
• The Manse Modernization Grant assists ministry personnel who are living in the manse to makie improvements, such as renovating the kitchen or bathroom, painting, or replacing windows and doors. This is a matching grant of up to $5,000 in any six-year period for congregations with modest income.
• The Technology Support Grant is a matching grant of up to $1,500 that is for technology that enhances worship, communication, training, planning, and accounting functions. Some items it covers are sound systems, computers, projection screens, copiers, and printers.
• A Capital Assistance Loan is a capital project loan of up to $150,000 or 50% of the total project. Consideration is given to congregations with income up to $300,000.
• Camp Loans are improvement loans for repairs, improvements, and greening initiatives to assist with up to $50,000 of the project or 50% of the total project cost.

To qualify for a Capital Assistance Grant, improvement items generally must be purchased after the Financial Support Group (FSG) has confirmed approval of the grant.