RICHMOND — Virginia Baptist churches which are struggling with financial shortfalls may once more find some relief as a result of a new policy adopted in February by the Baptist Extension Board.
The Extension Board has made an additional $100,000 available as loans which churches may use to cover unpaid debts or other obligations.
Last July, for the first time, the Extension Board began offering the loans. Previously churches could use Extension Board loans only to purchase property or construct buildings. The application process for the new loans also is less complicated and time consuming than the process of applying for property or construction loans.
“We expect these loans to be used primarily to resolve cash-flow situations,” Eddie Stratton, treasurer of the Extension Board, said when the policy was established. “The board has over five million dollars in assets available for loans and we thought we should see if there were ways we could help churches that are hurting in this economic climate.”
About eight BGAV churches have taken advantage of the opportunity and the original $200,000 made available for loans has been depleted.
The Extension Board’s 15 directors approved the additional $100,000 in their February meeting.
Also approved was a change in the maximum amount available for each church, which now is $10,000. Previously, the amount was no higher than $25,000. Each loan will have a maximum term of five years at 5 percent interest — the same policy adopted by the Extension Board in July.
The directors have authorized both Stratton and John Upton, who serves as executive director of both the Extension Board and the Mission Board, to consider and approve the loans, based on criteria set by the directors.
“We’ll make the determination based on need,” said Stratton. “And the turn-around time will be five days or less.”
Virginia Baptists organized the Extension Board in 1940, anticipating a church building boom that followed World War II. Its loan fund has grown to about $16 million from the interest on loan repayments and from Virginia Baptist Cooperative Missions allocations.
The board’s loans, which are limited to a maximum of $500,000, assist congregations which are unable to secure full commercial financing. Usually the loans are second mortgages, though sometimes the board is the primary lender in land purchases.
Currently the board has 70 loans outstanding, totalling about $12.8 million.
Applications for Extension Board loans may be obtained from Kay McMeniman at the Mission Board. She can be reached at kay.mcmeniman@ vbmb.org; at 2828 Emerywood Parkway, Richmond, VA 23294; or (804) 915-5000 or 1-800-255-2428. Additional information may be found at www.vbmb.org.
Robert Dilday is managing editor of the Religious Herald.