A loan from the E.C. Church Building Fund has been approved for up to $500,000. This money is available as needed – like a line of credit. We may or may not need all of this money to complete the building project, but we can borrow up to $500,000. The anticipated high end of the project is $750,000.

As with all loans, the faster the loan is paid off, the more money is saved on interest expense. The following tables show the monthly payment, total cost, and total interest expense for three different example loan amounts, borrowed at 5.5%: Annual Percentage Rate

Our plan is to borrow enough money to cover the Excavation and Stone ($60,000), Building Shell ($313,000), the Concrete ($50,000), and the Architect/Engineer Stamp ($7,000). Doing this would require a loan of $430,000. We would pay for the remainder of the project by using a combination of the current Building Fund balance, and the Building Fund contributions received during the building phase of the project. We anticipate the building phase to be two years. The current Building Fund Balance is about $50,000. We also have $40,000 in general savings which we could use for building if needed.

The following summarizes the breakdown of this plan:

Our plan is to begin paying back the loan during the building phase using the general fund for the monthly payment. During this time, we will be making payments as if the loan is a 20 year loan. After those two years, when the building phase is complete, we will focus our attention to aggressively paying off the remainder of the loan balance. Lord willing, the loan payoff phase will last only an additional three years, meaning we will be debt free in five years.

We are asking for three types of financial commitments, and a labor commitment. The three types of financial commitments are as follows:

-          Initial Donation: Lump sum contribution up front to minimize the borrowing requirement for the project.

-          Building Phase Commitment: Monthly contribution to the Building Fund during the two years we are in a building phase. This money will go to the amount needed above our loan amount to finish the project.

-          Loan Payoff Phase Commitment: Monthly contribution for the three years following the building fund where we focus on paying off the loan borrowed from the E.C. Church.

For example, if no Initial Contributions are received, at the high end estimate we will borrow about $430,000 from the E.C. Church, and require $270,000 ($11,250 per month) of building phase contributions during the two years of the building phase. While in the building phase, our general fund would be used to begin paying back the $430,000 as if it were a 20 year loan. The payment schedule for that loan would be:

After the two year building phase, our loan balance would be $405,018.37. We then would attempt to pay of the remainder of the balance during the three year loan payoff phase. Payments to pay off that remaining balance in three years would be:

Keep in mind this example assumes no money is contributed as Initial Contributions. The more money given at the beginning of the project, the lower these numbers will actually be.

We also remind you that any contribution made to the building fund should be above and beyond the money you currently give and the time you currently devote to our ministry.

If you wish to contribute to the building fund, please contact our office by calling 610-562-5033.