Loan Support Program
DevCo offers a special “Loan Support” program to lower the interest rate on a church loan if the church or its members have invested in DevCo certificates. The interest rate set for the term loan can be discounted when investments are made by the church or its members in a DevCo fund. This program provides a “Win-Win-Win” scenario for individuals to receive a return on their investment, while having a missional impact by investing in United Methodist church expansion and putting their personal investments to work for their local church.
The following deposits can be used for loan support purposes:
Savings, investment and retirement certificates where a local church relationship is named (both new and existing investment accounts).
The following schedule shows how the loan interest rate will be lowered, based on deposits with DevCo, according to the following Loan Support Program (LSP) schedule:
- 5 basis points interest rate reduction at 10% LSP
- 15 basis points interest rate reduction at 25% LSP
- 25 basis points interest rate reduction at 35% LSP
- 35 basis points interest rate reduction at 50% LSP
- 40 basis points interest rate reduction at 65% LSP
- 50 basis points interest rate reduction at 75% LSP
- 65 basis points interest rate reduction at 90% LSP
- 75 basis points interest rate reduction at > 97% LSP
Self-funding for loans is reviewed on a monthly basis, and the loan support rate is recalculated if any investments were added or removed. LSP interest rates are determined by:
- Calculating the value of all designated investments
- Comparing the connected investments to the original value of the approved loan
- Pro-rating the resulting interest rate with terms outlined in the loan commitment letter and term sheet
For more information on the loan support program or on how to get started, please contact us.