Loans Created with Churches and Ministries in Mind

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“Trinity United Methodist Church’s facilities needed upgrades to make our space more effective for ministry in the 21st century. Church members generously gave and pledged $1.2 million dollars to remodel our church buildings. The Alabama-West Florida United Methodist Development Fund provided the loan that enabled us to complete our remodeling. Terri Turner and the AL-West Florida United Methodist Foundation’s staff guided us through a clear and simple loan process. They have always responded promptly to any of our questions and concerns.” Dr. Scott Christopher Hohn, Senior Pastor, Trinity United Methodist Church

“The Development Fund’s loan process was straight forward and easy to follow. Terri and her team were readily available to answer the few questions that we had, and we got a quick and positive response from the loan committee. We were then able to accomplish the roof replacement as planned. We highly recommend that when you are looking for funding to accomplish your next major church project that you talk with the Development Fund.” Bob Kirsch, Board of Finance Chair, Government Street UMC

One of the most awe-inspiring things we get to witness at the Alabama-West Florida Development Fund and UM Foundation is God working through individuals and churches to fulfill the Great Commission. In the Alabama-West Florida Conference, our churches, agencies, and missions are building God’s kingdom in so many different ways.

The Development Fund was established as a non-profit in 1984 to provide a locally-based low-interest loan alternative specifically created with churches and ministries within our Alabama-West Florida Conference in mind. The board of directors is made up of United Methodists and AWF Conference staff with both financial backgrounds and experience in meeting Book of Discipline guidelines. Loans are backed by Development Fund investors who are dedicated to the mission and vision of the local church. Working with the Development Fund, churches and ministries receive step-by-step guidance through the application and loan process, financing options, answers to committee questions, and help with other needs that arise.

The Development Fund has fueled the growth, expansion, and renovation needs of the AWF conference for over 37 years, loaning more than $20.5 million to churches, agencies, and ministries in the AWF Conference. Loans generally fall under the categories of new church construction, purchasing property, or major renovation projects. Loans across our conference have helped with refinancing large loans, building new sanctuaries and recreation centers, expanding ministries with property purchases, roof replacements, air-conditioning replacements, landscaping, interior and exterior remodeling, parking lot expansions, and much more.

 Types of loans

  • New Church Construction
  • Purchasing Property
  • Major Renovation Projects
  • Refinancing Large Loans

Why Borrow from the Development Fund?

  • Low-interest loans for up to $1million.* Rates are typically lower than commercial rates, and Development Fund rates are currently set at 3.95% (this rate is set quarterly by the Development Fund Board of Directors).
  • Loan terms for up to 15 years
  • Fixed interest rates for one year
  • Competitive interest rates
  • No points or closing costs
  • Excellent service provided by the Development Fund Board, which consists of United Methodists with expertise in finance and banking and experience in complying with Book of Discipline guidelines for building and loan projects

*For loans larger than $1 million, contact us! The Foundation has the ability to negotiate with other sources for larger loans.

How to Begin the Loan Process

Three main goals to address when beginning the loan process:

  1. Meet the Requirements: Meet Book of Discipline guidelines and requirements, get approval from the District Buildings and Location Committee, get approval at a called church conference, and fill out a loan application. The loan application must be completed with all relevant statistical and financial information about the church’s congregation, and the proposed construction plan must be completed and received by the Development Fund office. The church must also provide a legal description of the property for its Board of Trustees to sign.
  2. Secure Needed Pledges: Secure pledges from the congregation for two to three years of the amortization schedule (monthly payments). The church must sign a mortgage and promissory note and have recorded the first mortgage on the property with lien evidenced by a mortgage’s title insurance policy issued by a title insurance company licensed in Alabama or Florida.
  3. Save 10% of Proposed Project: A minimum of 10% of the total cost of the proposed project must be placed in a separate building fund account at the time the loan is approved.

View the full application instructions and guidelines.

The Development Fund is a great option to finance your next project, whether building, expanding, renovating, or refinancing. To get started and see if your church or ministry qualifies, fill out a loan application form and contact Terri Turner at 334-793-6820 or [email protected].

What Other Churches and Ministries Have to Say:

Trinity United Methodist Church partnered with the Development Fund to make needed church upgrades to their space for more effective ministry in the 21st Century:

“Trinity United Methodist Church’s facilities needed upgrades to make our space more effective for ministry in the 21st century. Church members generously gave and pledged $1.2 million dollars to remodel our church buildings. The Alabama-West Florida United Methodist Development Fund provided the loan that enabled us to complete our remodeling. Terri Turner and the AL-West Florida United Methodist Foundation’s staff guided us through a clear and simple loan process. They have always responded promptly to any of our questions and concerns.” Dr. Scott Christopher Hohn, Senior Pastor, Trinity United Methodist Church

Government Street United Methodist Church had a desperate need to replace their church roof and the funds were not available in their budget. They investigated several sources for funding the project and settled on the Development Fund:

“The Development Fund’s loan process was straight forward and easy to follow. Terri and her team were readily available to answer the few questions that we had, and we got a quick and positive response from the loan committee. We were then able to accomplish the roof replacement as planned. We highly recommend that when you are looking for funding to accomplish your next major church project that you talk with the Development Fund.” Bob Kirsch, Board of Finance Chair, Government Street UMC

Jackson FUMC partnered with the Development Fund to receive a loan to replace the HVAC system, update their Christian Education space with smart technologies to increase safety, re-landscape the campus, refurbish youth meeting rooms, and remodel their Fellowship Hall:

“Our primary need is to bring the heating and air conditioning unit in our sanctuary building up to date. The present water cooled industrial unit was installed when the sanctuary was built in 1929.” Rev. Alan Gantzhorn

“From our first conversation through the disbursement of funds, Terri Turner and her staff were helpful, informative, and gracious. The application process was straightforward, and whenever we had a question or concern, they addressed that concern immediately. We were under a fairly tight schedule due to our contractor’s availability, but in the end, the Foundation was able to approve our loan and disburse the money we needed even before the contractor arrived. We were very pleased with the services offered to us by the Foundation.” Rev. Alan Gantzhorn

San Pedro Mission was growing but had no permanent place to worship. With the help of the Development Fund, they were able to purchase property to build their God-inspired vision:

“This is a God-sized dream. I believe that (San Pedro Mission’s) passion toward a just and deliberate ministry with a growing Hispanic population is not only relevant, but a requirement of the gospel.” Rev. Darren McClellan, Baypines District Superintendent

Port St. Joe broke ground on a new “great hall” that featured a rotunda overlooking the water with the help of the Development Fund:

“We feel like the Foundation understands our mission and is able to form a partnership with us for the sake of the gospel. The process of working with both foundations has worked very well for us and hopefully opens doors to other churches in our conference with similar needs. The two foundations provide very competitive interest rates and terms, but the greatest blessing is that they share our mission.” Rev. Dr. Geoffrey Lentz

Navarre FUMC received a loan from the Development Fund to purchase two property lots to expand both The Good Neighbor Thrift Store and We Care Food Pantry ministries:

“The support has been wonderful from the Alabama-West Florida Development Fund. We plan to enlarge the Thrift Store and use the adjacent lot for a community garden.” Cheryl Fromularo, Manager of the Good Neighbor Thrift Store, a community ministry supported by Navarre UMC

Lynn Haven UMC partnered with the Development Fund to open the Fusion Fitness Center:

“Opening the Fusion Fitness Center has made our church more community-mission minded. We couldn’t have done this without the support of the Alabama-West Florida Development Fund.” Wanda McDonald, Director of Communications

Crestview UMC worked with the Development Fund to receive a loan to replace their air conditioning unit:

“As a new pastor coming in to Crestview, communication has been seamless with the Alabama-West Florida Development Fund. They have helped us make ministry possible. Working with the Development Fund was a no-brainer.” Reverend Michael Precht 

Read Development Fund Loan Stories

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