One-Hundred Days and Counting!
Over the past 100 days in my position as a lending officer with the Virginia United Methodist Development Company, LLC (DevCo), I have been afforded the opportunity to assist and approve 15 church loan packages, totaling over $13.5M. Clearly, there is more work to be done as the effects of the economic recovery continues to affect our communities. DevCo has developed a platform of products and services designed to work with United Methodist churches and related entities in all stages of life to create and implement sustainable missionary models. As UM churches promote the uplifting and well-being of communities, we believe that there are opportunities for DevCo to support these efforts. Our DevCo team consists of experienced church development specialists who bring a wealth of ideas and talent. We are dedicated to the belief that we can make a difference honoring our mission:
“Stewarding Potential to build His Kingdom”!
Since the organization’s inception in 2014, the team has work diigently to have a permanent presence throughout the Commonwealth of Virginia. DevCo plans to play an important role in the resurgence of Methodist churches building God’s Kingdom. At DevCo, we understand that in order to transform communities, investment of time, funds and expertise will be needed. Our approach to community development is based on the belief that working with Methodist churches, we must be an innovative catalyst and agent for missional change. We also recognize that success can’t be measured in terms of self-serving, but rather by our metrics of focusing on the needs of our Methodist church family. We look for ways to accelerate impactful solutions in providing innovative thinking to help churches enhance their missionary goals and objectives.
The success of Methodist churches’ spells ECONOMICS. Its more than just “If we build it, they will come.” There are many reasons churches decide to revitalize their edifice, other than making it more appealing. Our goal is to support the development of sustainable ministries to impact coming generations as the hands of Chirst reaching out into our communities. Every church is encouraged to seek and select a lender that offers the “BEST” rates, terms, and conditions in support of its ministries. In addition to offering competitive loan rates, DevCo provides added-value in its financial management relationship. As an experienced lender, we sincerely understand the importance of being compassionate and flexible during these challenging times.
Non-Traditional Loans:
Many times, there is a need for non-traditional bank loans. While banks may offer their own option of alternative lending, it may be more feasible to explore a loan with DevCo.
Follow these 7 steps to help your loan approval process run smoothly:
1. Discovery phase: What is the purpose of the loan? Does it make sense to take on debt?
2. Gather financial and other required documents: (The following information will be requested.)
- Financial statements (current and prior 2 years).
- Balance sheet of income and expense.
- Annual budgets (current and prior 2 years).
- Average weekly offerings (current and prior 2 years).
- Annual average number of giving units (current and prior 2 years).
- Legal description of church property and brief history of the church.
- If a re-finance is desired, the church’s current loan documents will be requested.
- Pastor and district superintendent consent forms.
- District or charge conference minutes approving the loan.
3. Schedule an Appointment: Review your plans with a DevCo team lender to strategize how to reduce obstacles and strengthen your approval opportunity.
4. Submit Loan Application: After the requested financial information and other documents have been submitted, the lending team will analyze and underwrite the loan in preparation to submit the loan to the DevCo loan committee, which meets the first Wednesday of every month.
5. Loan Committee: The loan package is presented for revew to the Loan Committee; and, once approved , if the loan is over $500,000.00, the request must also be presented to the DevCo Board of Managers (BoM). Upon approval of the BoM, a loan commitment letter and term sheet is executed and forwarded to the church.
6. Loan Commitment and Term Sheet: The loan commitment and term sheet indicates the terms, rates, and conditions of the loan approval. The document is forwarded to the church for signatures and valid for 15 days.
7. Loan Closings: Upon receipt of a signed loan commitment and term sheet, the information is forwarded to the attorney in preparation for loan closing. Be patient and keep in touch with the DevCo team – especially since, on average, it takes 60-90 days to close.
Virginia United Methodist Development Company IS the BEST kept secret for our Methodist Churches in VA. We are here to accommodate United Methodist churches and institutions in need of LAND ACQUISITION, FINANCING, RE-FINANCING, BUILDING RENOVATIONS, AND CONSTRUCTION. We bring a new meaning to “Methodists Helping Methodists!”
