Financing Available to Churches

NEW YORK (UMNS) — The United Methodist Development Fund (UMDF) is making available $30 million for loans to United Methodist churches and churchrelated institutions seeking financing to construct new buildings or improve existing ones.

The 40-year-old fund is a ministry of the United Methodist Board of Global Ministries.

During the past six months, UMDF has received large infusions of money for investments from individuals and church agencies, including the General Council on Finance and Administration, according to Bishop Jonathan Keaton, fund president. This enabled the fund’s board of directors to end a six-month moratorium on loans.

The investments, which pay interest every six months, form the pool of money used to finance loans for renovation, construction and property purchase. The interest rate for new loans is 8.5 percent for a 15-year term.

During the past two years, UMDF has financed more that $81 million in loans, the highest number in its history. The unprecedented number of loans granted is an indication of its “vigorous health and ongoing commitment to assisting churches and institutions” that need space to grow, said the Rev. Sam Dixon, staff executive for the fund.

Dixon explained that community-based mission institutions, which provide vital services like day care and after-school programs, sometimes are not attractive applicants to conventional lenders because of the nature of their ministry and financial undergirding. They, along with churches housed in older structures or buildings with inadequate space, are ideal candidates for construction financing through UMDF, he said.

For loan information or applications, contact the Board of Global Ministries’ Office of Loan Administration at (212) 870-3865.

The fund’s Web site, http://gbgm-umc.org/units/evgrowth/umdf.html, also contains information, interest rates and stories from churches that have improved their facilities with the help of UMDF loans. Crosson is director of public relations for the Board of Global Ministries.

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