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 Frequently Asked Questions...
Who is eligible to receive a loan through the BGC Cornerstone Fund? We currently offer financing to Converge/BGC churches, districts, and affiliated ministries in the U.S. and Virgin Islands. How long does it take to process my loan request? The Fund strives to approve new loans in a timely manner to ensure that project deadlines will be met. There is quite a variance in the time required to process loans – depending on the scope and complexities of the project. Contingent approval can typically be obtained in 1-3 weeks, depending on the thoroughness of submitted materials. The Fund looks at three areas when considering a loan application:
Cash Flow – Can the church afford the loan? How are loan rates determined? Loan rates are typically determined by adding 200 - 275 basis points to the 5 year LIBOR SWAP (www.swap-rates.com/USSwap.html) for churches in existence at least 10 years. Churches in existence less than 10 years will typically receive a rate that is ¼% less than the rate for churches in existence at least 10 years. What is the amortization period on Cornerstone Fund loans? Loans are made on a first mortgage basis and are amortized up to 20 years, with rates re-pricing in 3 or 5 years increments. Loans to purchase land are amortized over 10 years. Are there any fees associated with a Cornerstone Fund loan? Yes! An origination fee of 1% is charged on all loans and is added to the principal balance of the loan unless the church wishes to pay this amount separately. Do you charge any pre-payment penalties? No! All payments made on the loan are first applied to interest owed and the reminder is applied to the outstanding principal. Is receiving a loan contingent upon investing with the Cornerstone Fund? No! However it is because of our investors that we are able to continue to offer financing for your project. We therefore encourage you to share our ministry and investment opportunities with those in your congregation so that we can have the necessary funds available to assist all qualified churches that are seeking financing. Vince Moxon, Assistant Director of Loan Services, will gladly walk you through the loan process and answer any questions that you might have at this time. Give him a call at 1.800.323.4215 x3207 or email him at vmoxon@baptistgeneral.org. |
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