Borrow responsibly to ensure your building project's success

Today, it's even more critical that your vision for new or renovated space to continue or expand your ministry remains in line with your capacity to carry long-term debt. Borrowing too much limits your flexibility in future decision-making. Below are some financial guidelines (from Ziegler Capital and Mission Management and Consultants) that can benefit your church building committee in moving your project from dream to worshipful reality:

33% Revenue Test: Your annual debt service shouldn't exceed one-third of your annual revenue from all sources.

75% Loan-to-Value Ratio: The amount of your loan shouldn't exceed 75% of the value of your existing buildings, land and the project being collateralized by the loan.

3-Year Operating History: Your ministry must have an operating history (and financial statements) for at least the past three years.

Contract: A fixed-price or guaranteed maximum price construction contract is required on all major projects.

Loan Size: Most non-bank financing institutions like our two partners below have minimum loan sizes that help them give you the best service possible.

Online Financing Tool: Click here to provide financial data to one of our partners and receive a confidential analysis of your borrowing capability.

Energize your project by attending one of the next Church Building Committee 101 seminars on October 13, 15, and 20 at a location near you.

Mike Mucci at Mission Management and Consultants, LLC, a premier church finance firm, can help you over the hurdles of financing your project.

David Schlosser at Ziegler Capital, a leading national church lender, can tell you more about smart, long-term ministry financing.

Contact Beth Mack at Horst Construction at 717-581-9981 to transform your vision into a functional space that nurtures and supports your ministry and mission.

View our church project portfolio.