Policy on

REVOLVING FUND GUIDELINES

Episcopal Corporation of the Diocese of Iowa Revised September 9, 2011

Purpose:

The Revolving Fund exists to foster new and renewed growth.

Background:

The people of the Diocese, in the early 1960’s, raised in excess of $1,000,000 through the Episcopal Expansion Fund Drive, and by Convention action earmarked $370,000 as a Revolving Fund for new mission work, and for expansion and renovation of existing facilities in growth situations.

Policy and procedure:

The Revolving Fund does not have unlimited funds. That these limited funds may be used across as broad a front as possible in the mission of the Diocese of Iowa, the following policies and procedures will be followed:

  1. Loan applications are available from the Episcopal Diocese of Iowa, 225 Thirty-seventh Street, Des Moines, Iowa 50312. Request and complete the appropriate one of the following Revolving Fund Loan Applications:

    a. Purchasing Land Site, Purchasing Existing Building, and/or New Construction on New Land Site

    b. Remodeling, Improving or Adding to Existing Building

    c. Repairs and maintenance of existing property

  2. Return the completed application to the Episcopal Diocese of Iowa at least 90 days prior to the date when the funds will be needed to begin the project. The application will be referred to the Commission on Church Property, Architecture and Allied Arts. Incomplete applications may incur delays and be returned for additional information.

  3. The purpose of the fund is to foster growth. The application shall indicate that the congregation has plans that envision a visible, vital and viable presence in the community. If no such plans exist the congregation shall indicate a willingness to work with diocesan consultants to develop an appropriate plan.

  4. Except under extraordinary circumstances the congregation shall have conducted a fund raising campaign for the proposed project before applying for a Revolving Fund Loan.

  5. The loan application shall include a resolution from the Vestry (or Bishop’s Committee) authorizing the officers of the congregation to arrange the loan.

  6. In order to enable the limited assets of the Revolving Fund to assist as many congregations as possible the borrowing congregation shall seek commercial loans before requesting a Revolving Fund Loan. Where a commercial loan is unavailable or insufficient the congregation may request a Revolving Fund Loan. Endowed parishes shall look to their endowment before considering a Revolving Fund Loan.

  7. The borrowing congregation shall demonstrate that it is meeting its Diocesan obligations by consistently paying its Stewardship Share and that it will continue to do so during the term of the loan.

  8. The maximum amount of the loan shall be $100,000.

  9. Loans are granted for a maximum period of ten years.

  10. The rate of interest shall be the posted New York prime rate plus 2% fixed for the term of the loan on the date the loan is made.

  11. Loans are to be repaid in equal monthly payments consisting of principal and interest according to a standard mortgage loan amortization schedule. Repayment of the loan shall begin the month after the funds have been disbursed by the diocese.

    Accelerated payments will retire the loan early and reduce the total amount of interest paid but will not change the monthly payment due prior to retirement of the loan.

  12. Borrower is required to maintain insurance coverage on the property and to require certificates of insurance from Contractors.

  13. Borrower is required to obtain lien waivers from Contractors, Sub-contractors, and Suppliers before or at the time that payment for the material or services is made to them. Borrower shall maintain lien waivers for inspection by the lender at lender’s request.

Revolving Fund Processing Guidelines

  1. Loan applications will be accepted at the Diocesan Office in accordance with the Revolving Fund Guidelines (Revised) and submitted to the Commission on Church Property, Architecture, and Allied Arts.

  2. The Commission on Church Property, Architecture, and Allied Arts will examine the application.

  3. If the application meets the criteria established in the guidelines the Commission on Church Property, Architecture, and Allied Arts will approve the loan, request that the Treasurer disburse the funds and notify the Board of Directors.

  4. If the application is incomplete or does not meet the established guidelines the application will be returned.

  5. The requesting congregation may resubmit the application. If the Commission on Church Property, Architecture, and Allied Arts is still not satisfied that the guidelines have been met the application will be submitted to the Board of Directors for decision at their next regularly scheduled meeting.