Following-up with the discussion regarding the CYC, and Answering some Frequently Asked Questions.
+ As we discussed, there are three options to help support the Church at this point.
1. A line of credit on your property. This means that you will apply for a line of credit at your local bank for the value of your property. The value of your property will be valued based on the fair market value of today, minus your mortgage responsibility. For example, if your property is worth $500,000 and your responsibility is $100,000, then the current value of your property is $400,000. The line of credit will allow you to take 80% of that $400,000.
2. Bulk Donation. The Church has 320 families. If every family is able to donate $25,000, this will add up to $8 million for the Church. With the $4 million that the Church currently has, the Church will be able to satisfy the needs for the building.
3. Church Bond with Interest. You can lend to the Church for a three-year term, and the Church will give you 2.5% interest yearly on your money. For example, if you lend $100,000 to the Church, you will receive $2,500 in interest per year. If you require the money back sooner than three years, the Church will return the principal back at any point.
+ Answering some frequently asked questions and raised concerns:
Q. If I am interested to help the Church with a line of credit on my property, who will pay for the expenses?
A. The Church will pay for the application fee and the appraisal fee. Afterwards, the Church will be responsible for paying to the bank on your behalf.
Q. If I do a line of credit, and I need the money back right away, what will be the guarantee that I can get my money?
A. Your money is guaranteed through three steps:
1. The Church will only use 75 to 80% of the available line of credit, so there will be about 20 to 25% of the line of credit on the side as a cushion to be used for the principal for whomever needs the money back sooner.
2. The Church, on your behalf, will pay to the bank both interest and principal. Accordingly, by the maturation date of the loan, your principal will also be paid in full.
3. In case more money needed, the Church can apply for a line of credit on the Church property, which is about $2 million. This will then guarantee the lines of credit taken by participating congregation members.
Q. What if a family cannot afford the $25,000 as a donation?
A. As mentioned, not every family can afford the $25,000 donation in bulk. That is okay. Whoever can afford more than $25,000 is encouraged to give more, and whoever cannot give $25,000, or the income does not support $25,000 as a donation, is encouraged to pay their maximum donation at once, if possible. This will be their tithes donation upfront for two years. For example, if a family earns $40,000 per year, their tithes donation will be $4000 per year. If they are able to donate $8000 at once as a bulk, that will still be great and they would have paid their tithes for the next two years.
Q. What are the loans with interest made to the Church?
A. This is called a Church Bond. The money in your checking account is not providing you any interest. You can loan your money to the Church, and the Church will give you 2.5% interest on your money per year. The Church will then give you your money back after three years.
Q. If I can do both a line of credit on my property, and give the $25,000 bulk donation, which option does the Church prefer?
A. If you can give the $25,000 donation, that will be great! If you are also able to apply for a line of credit at the same time, that will be a good option to have the funds available and ready, just in case the Church needs it. If you choose to commit to only one option, the $25,000 donation to the church is preferred.
+ Last, we are confirming that we are still proceeding with our original plan, which is to obtain a construction loan from the bank. This process is still ongoing.
+ God bless everyone’s giving, and reward you a hundred-fold.