New Loan Request
DMS meets in February, May, September and November. Please be aware of this schedule in the planning process.
- A concise statement of the purpose of the project for which debt will be incurred (the “mission statement”) and the place of this project in the total ministry of the parish, region, and Diocese.
- Describe the project and how it will support the “mission statement.”
- A description of the approval process for this project within the parish. Please include a statement as to who holds title to the property in trust for The Diocese of Virginia. For example: “Property is held in trust for The Diocese of Virginia in the name of the
- Trustees of applicant church, being (insert all current Trustee names)
- Bishop of the Diocese of Virginia, being Shannon S. Johnston
- Trustees of the Diocese of Virginia, being (insert all current Trustee names)
- Architectural plans, if planning to build or renovate. Please note all external considerations and a list of governmental approvals necessary for the project. If the parish is an historic building, in an historic area, or adjacent to either, an interview with local government and/or historical society is especially necessary to judge extraneous or hidden costs of the project.
- Has the Standing Committee been contacted to provide approval for the church to incur debt? If not, please explain why. If so, please advise if approval has been given.
- A stewardship history, including history and projected growth rate of pledges to operating budget and any prior special appeals.
- Operating budgets for the three-year period immediately preceding application.
- A complete copy of the most recent annual parish audit, as well as current income statement and balance sheets.
- Report of fund-raising efforts and results. When is the money coming in?
Pledge assumptions should be discounted two percent for pledges to be received within 12 months, five percent for those to be received in a period 12-24 months out, and at least 10% for all pledges payable beyond 24 months.
- A proposed borrowing plan for the project, including a clear statement of the total amount of debt to be incurred from all sources and a schedule for repayment of loans.
When is the borrowed money coming in to church accounts?
Where is loan to come from and what are the terms? A copy of the actual loan documents or pre-qualification documentation is to be included.
Interest assumptions should tend higher than at time of application (i.e.: +.50%). Judgment should be based on current market conditions.
If using a variable rate, look into buying a “cap” as insurance against economic catastrophe.
- If the requesting Church is a Mission Church and/or Church under the supervision of the Bishop, an architectural and finance committee of the Commission on Congregational Missions must review the proposal. A letter of approval from the Chair of the Commission on Congregational Missions, or its successor entity, to the Diocesan Missionary Society is required for approval. In the case of a simple refinancing of previously approved debt that does not involve additional debt of any kind, these steps are not required.
- A proposed spending plan for the project phases and costs of each phase, including allowance for cost overruns.
- Projected financial pro forma statements for the parish for the first five years after the commencement of the repayment of the debt.