Church loan questions - Part 1 Back to blogPosted by: CIF Staff

As a church leader, you might be thinking it’s time to start planning for a new church facility. Whether this involves new construction or an existing building to renovate, considering a church loan can seem overwhelming.

To simplify the process, we’ve put together a three-part series on the important questions to ask when considering a church loan. Part 1 will focus on overall church questions. Part 2 and Part 3 will focus on church finance and facilities questions.

Part 1 - Overall Church Questions

1. Is additional space needed to accomplish God’s vision for the church? It’s important for church leaders and the congregation to understand and affirm God’s vision and the need for additional space. 
2. Is the church growing in giving and attendance? If you're running out of space since your ministry is healthy and strong, a church loan could be helpful in meeting congregational needs. 
3. Are your pastoral staff and church leaders stable, united and motivated? Having motivated staff and a committed pastor who is excited to lead the church are essential when considering a church loan.
4. Is your church incorporated? Without church incorporation, it’s harder for a church to operate and borrow. If you think your church is incorporated, be sure to double check. Church incorporation can lapse due to failure to file annual reports with the state and expiration as some churches may only be incorporated for a limited timeframe. 
5. Are you allowing enough time for the loan process? The loan process can take as little as a 2-3 months for refinances to as long as 2 years of planning and guidance for construction projects.
6. Do you have the staff or members in the church who have backgrounds in construction, finance, fundraising or architecture who can be part of a team to lead the church? Is outside help needed? It is helpful for church staff and members to participate in the loan process if they have expertise in these areas. If outside help is needed, we can help with that! We provide assistance in planning and guidance throughout the church loan process, as well as consulting in fundraising for capital campaigns.

To read stories of churches that have partnered with CIF on a church loan, church refinancing or on other church financing needs, click here!

Check out Part 2 of this series where we address questions on church finances!