Church Loans

Church Loan Service Cleveland, OH

When churches need capital to expand their ministry work and navigate the financial challenges that come along with it, Active Business Loans is THE place to start!  We provide guidance concerning any church equipment (pianos, sound equipment, computers, pews, etc.) church construction or renovations, refinancing loans, and any other financial matters related to your ministry.

Church LoansChurch Acquisition, Construction, & Refinancing

Church loans are basically the toughest type of loan to close, next to gas stations. The vast majority (about 99%) of banks will not deal with churches because if the bank must cancel the loan it can create bad publicity. At Active Business Loans, we can get you the best lender for your situation.

To determine what qualifies for a loan we look at the 3 basics:

  • Age of the Church (organization)
  • Average Attendance Each Sunday
  • Location

Church LoansChurch revenue is measured in two different categories: tithing and other sources. Other sources could be a school affiliated with the church, investments, or different uses of the church property that generate revenue (like facility rental.) The main source of income is tithing. To determine the amount of loan you might qualify for, Active Business Loans uses the 3.5x factor. For example, if your church receives $200,000 a year in contributions, we would take the $200,000 and multiply that by 3.5. The amount ends up at $700,000. This is the amount your church could qualify for a church buy-out, refinancing, remodeling, or construction.

We Love Helping Churches

When the time comes for your church to seek out financing, don’t hesitate to contact Active Business Loans.  We value our community and we love helping churches get the financing they need to expand their ministries or better their properties.

Here are some of the key points when it comes to church financing:

  • Financing for new construction, buying another building or church, or refinancing a current property
  • Low interest with a fixed rate
  • 20-25-year term or short-term loan
  • Refinancing can start at $350,000
  • Long term financing starts at $500,000
  • Construction financing starts at $500,000 and can extend into the millions of dollars
  • The construction loan works in conjunction with church architects, construction professionals, and capital campaign advisors to help your church meet its goals

Church Equipment Financing

When it comes to office fixtures, computers, furniture, lighting, music & sound equipment needs our special lenders understand! Check out our list of criteria for financing your church’s present location:

  • 94% non-traditional approval rate
  • Low rates
  • Minimum $10,000 loan
  • Loan processing within 5 days
  • Build a line of credit while taking up to 60 months to pay
  • Start-ups, newer, and established churches

Active Business Loans tackles the following situations which traditional church loans typically do:

  • Excellent Documentation of a church’s financial operations- Active Business Loans understands there can be financial hiccups in the church’s history.
  • Church properties are unique and traditional banks are apprehensive to provide loans- Church Loans are treated no different to another type of loan with Active Business Loans
  • Individual guarantors are required for long term financing- Not so at Active Business Loans
  • Difficult business financial terms such as very small loans, low loan-to-value (LTV) terms, and high interest rates
    1. Active Business Loans offers loans as low as $10,000
    2. LTV’s can go as high as 80%
    3. Interest rates start at 4.7%