Application and Approval
The amount a congregation may borrow is limited by its demonstrated ability to repay the debt without placing undue strain on the resources required to carry on its ministry. In general, a congregation must have accumulated in their building fund a minimum of 25% of the total capital project cost. Capital project applications require approvals from the congregation, the presbytery, the PCBC executive committee, and the financial institution funding the loan. The final approval is at the discretion of the PCBC.
The loan application process takes a minimum of three months from receipt of completed application to final approval.
For detailed information on the PCBC loan application and approval process, please refer to Chapter Eight of When you build…A Guide for congregations of The Presbyterian Church in Canada.
Once the loan is approved, the congregation signs a demand promissory note and the PCBC signs a guarantee, both in favour of the financial institution funding the loan. The congregation provides a first mortgage security over all land, building and capital project, as well as a comprehensive insurance policy with the mortgage endorsement and loss payable clauses in favour of the PCBC.
There are two parts to loan repayment: interest and principal. The interest is paid monthly, and the congregation makes annual repayments of the loan based on the agreed-upon minimum amount of principal required each year. Extra principal payments can be made at any time without incurring a penalty.
Annual reporting is a requirement during the loan period. This includes financial reporting, as well as any updates from the congregation and its leadership team.
Information and Contact
For additional information, contact Betty Kupiean, General Manager, by email or by phone at 1-800-619-7301 ext. 337.
A helpful overview of the PCBC is also available to read in this PCBC article by Betty Kupiean, published in the Winter 2020 edition of the Presbyterian Connection newspaper.
To apply, please download the PCBC Loan Application below:
Presbyterian Church Building Corporation Loan Application