Overview Synod Loan and Investment Program

The Synod of the Pacific has an extended history, dating back to the 1950's, of lending to member churches. The current Investment and Loan Service was established over 15 years ago. The portfolio which began with two million in investor dollars has grown to over 35 million . The Synod of the Pacific has never lost an investor dollar and has been repaid every dollar lent under the current loan program.

Depositors in the Synod's Investment Services enjoy liquidity, high rates and the knowledge that their deposit is being invested in the growth of other churches in their area.  The Synod's Loan Service provides much needed funds for first unit purchases, site purchases, first unit construction, expansion and renovation projects, manse purchases and equity sharing arrangements.   The Loan Service provides fexibility and understanding of Presbyterian Church needs and operations that cannot typically be found with commercial lenders, plus attractive interest rates, and very low fees and expenses.  The net proceeds generated from the Investment and Loan Services are recycled back to member presbyteries as a portion of their Mission Partnership Fund allocations.

The liquidity of the program is underwritten by a $5 Million Revolving Line of Credit with Sonoma Bank. 

Synod of the Pacific offers five different loans to Presbyterian churches and organizations:

• Line of Credit Loans provide funds for construction and renovation projects and other needs.  Funds are drawn as needed, and only interest payments are required.  Interest rates range from 6.500% to 5.750%, depending on the church's level of Mission Giving.  Lines are granted for a 2 year term, with renewal possible for an additional two year term.
• Amortized Loans provide funds for site and building purchases, and are also used to refinance Line of Credit Loans after project completion, or to refinance commercial debt.  Principal and interest payments are fixed for the 5 year term of the loan, and are based on a 20 year amortization, with renewal possible for three additional 5 year terms.  Interest rates range from 6.250% to 5.500%, depending on the church's level of Mission Giving.
• James M. Muzzy Loans provide capital funding for congregations with special financial needs, including small congregations, new church developments, racial/ethnic congregations, and churches with catastrophic uninsured losses.  Fixed rate loans of up to $250,000 are available for up to 15 years.
• Low Interest Insurance Loans provide for risk mitigation improvements for church facilities, such as sprinkler or fire alarm installation, security and anti-vandalism measures, removal of hazardous materials, roof repairs, plumbing repairs to avert water damage, and repairs of all kind of hazards.  Each year, the James M. Muzzy fund offers a limited number of loans of up to $20,000, for these purposes.  The loans are repaid at 2.0% interest, over five years.
• Equity Sharing Loans provide funds for churches wanting to participate in Equity Sharing Agreements with pastors.  Loans of up to $125,000 for congregations of up to 250 members are made from the James M. Muzzy Fund.  For larger congregations or loan amounts exceeding $125,000, Line of Credit or Amortized Loans can be used for this purpose.  Click Here for more information about Equity Sharing between Pastors and Churches.

Discounts of up to 0.75% off our usual lending rates are available for churches demonstrating an excellent history of supporting Presbyterian causes through General Mission Giving.  Click Here for more details.  To determine what discount your congregation may qualify for, contact the Synod's Loan Coordinator.

To apply for a Synod of the Pacific loan, complete the appropriate application or contact the Loan Coordinator for help.  Loans must be approved by the congregation, the Presbytery and the Synod.

The Synod takes great pride and care in managing this important program.  We recognize that it is an integral part of the health and vitality of all churches within the boundaries of the Synod of the Pacific.  If you would like more program information, please  contact us:

For Loans:

Kendra Fraser at (800) 754-0669 X 10 or at kendra@synodpacific.org.