As most of you are aware, our building is financed partly through the Church Loan Fund also known as the Presbyterian Endowment Fund and partly through the Presbyterian Investment & Loan Program (PILP). The PILP portion, $478,400, will have a 3 year adjustable rate of 4.25%.

With the 4.25% interest rate, we as a congregation have the opportunity to bring the rate down to as low as 3.25% depending on how much we invest in PILP.

The minimum PILP investment is $500 and there is no maximum. The invested funds are used to finance other church projects such as ours, so by investing not only are you helping to lower our costs, but you are helping other congregations as well. It is truly a "mission" investment or as some would refer to it as a socially responsible investment. The Program offers a Mission Market account and term notes somewhat similar to CD's of various denominations.

The discount in interest rates will be accrued over the year and come back to the church in the form of a rebate check in January. The interest investors will earn from their investment in the Program will come back to them in quarterly interest payments or can be reinvested back into the Program.

The amount the church qualifies to receive in an interest rebate check at year end depends on the amount the congregation has invested throughout the year.

  • 35% of the principal is ¼ of a percent rebate
  • 50% of the principal is a ½ of a percent
  • 75% of the principal is another ¾ of a percent
  • 100% of the principal is 1.00 percent (the maximum)

The good news is that the church has already invested $50,000 with PILP. Also, as a New Church Development (NCD), the General Assembly and Presbyterian Foundation will designate investments for Faith from what they refer to as the Founders Funds. This special fund enables all NCDs to be invested at 35% of their loan amount, in our case $167,440, if the church invests at least 5% when their loan closes. With the 35% from the Founders Fund plus the $50,000 the church has invested, the congregation already has $217,440 in designated investments. With that much designated the church will receive a ¼ pt discount on our interest rate at closing and the effective interest rate will be 4%. However, with only $21,760 more invested the rate will drop to another ½ pt and the effective interest rate will be 3.75%.

This rebate program is a wonderful opportunity for Faith. As mentioned above, we already have a wonderful start. At a minimum we could cut our first year interest rate on our investor funds by almost $1500 if we invest an additional $21,760 to get to the 50% level. An additional $119,600 would get us to the 75% level and reduce our effective interest rate down to 3.5%. An additional $116,600 beyond the 75% level would bring us to the maximum level of 1%. In that scenario we would have the ability to reduce our interest rate a full one percent on our ILP rate, to 3.25%, and earn a $3000 rebate.

Keep in mind that the annual rebate check that we receive each January will be funds that we will be free to use in any way that we choose. Although we may want to use the funds for the building, the funds may be another opportunity for mission - new or ongoing.

Catherine Lynch, the east coast field representative for PILP, made a presentation to the congregation on July 31. If you missed it or if you have questions, you may contact Catherine at 866-261-3530, or email her at catherine.lynch@pcusa.org. The Program's website is https://pilp.pcusa.org/.