New Loan Rate!
New Loan Limit!
New Planning Process Guide!
by Charles N. Fulton III
November 2003

The ECBF Yesterday

The Episcopal Church Building Fund (ECBF) was founded in 1880 to respond to the expansion of the Episcopal Church throughout the United States and the subsequent building projects. Through individual and diocesan gifts a revolving loan fund was established to fulfill the mission of "Helping Build the Church and Helping Church to Build."

ECBF loans have met a variety of needs over the years. Early on, and continuing in some areas, churches were viewed as high-risk customers. Today some communities do not view churches as desirable neighbors and raise issues of traffic, parking, social ministry clients, and lost tax revenue. Church based funding has been critical when bank terms are unfavorable, unavailable, or evidence of church investment is required.

Since it’s founding the ECBF has been autonomous and self-supporting. It receives no operating funds from General Convention or other sources. Operating costs are covered through the interest earned in building loans and investments. Growth of the revolving loan fund continues to rely on contributions and investments.

An ECBF borrower has never defaulted. How? Loan applications are reviewed closely to ensure that there is a viable plan of repayment. Why? Enabling a congregation to encumber more debt than it can service does not encourage health and growth. We provide planning with each applicant to ensure that the project and the loan request are appropriate to the congregation. The issue of congregational vitality is addressed along with building needs.

The ECBF Today

"Helping Build the Church and Helping the Church to Build" is accomplished through financing and educational resources. The revolving loan fund has grown to over $5.5 million. To augment our loan capacity a debenture program was established, providing congregations, dioceses and the national church a place of investment that also supports the church.

How are ECBF Rates Determined? You may have noticed that when the market is high and volatile, ECBF rates are lower and don’t often change. When market rates are low, ECBF rates are moderate and don’t often change. Our rates will likely never match market highs or lows. Since ECBF operations depend upon interest earnings and investment return there is little room for rate variation. We borrow and loan at a fixed rate. Investors in the debenture program expect a reasonable return; often yielding the ECBF a spread as little as 1%.

What Besides Money Does the ECBF Provide? Money makes a building project possible, but doesn’t address a buildings’ relevance to ministry. Educational resources on planning the building project, congruence of the building to the congregation and ministry, congregational vitality, and growth are provided through written and video materials, workshops and consultations. Staff consult with many congregations over the telephone about process, conflict, and design. Initial renderings will be evaluated by staff upon request.

Upon diocesan invitation the ECBF President, the Rev. Charles N. Fulton III, presents on issues of congregational health and development at diocesan conventions and day-long workshops on the building planning process. The ECBF coordinates the Start Up!Start Over! Congregational Development Seminar, which continues to fill to capacity after 18 years, and the lnew Upward Bound Advanced Training for Congregational Development.

The ECBF produces four resources available
for order at 800-334-7626, ext. 6003:

A Congregational Planning Process – A newly revised workbook to help congregations plan for building projects that are within their budget and designed for their future. Recently updated and edited to include the learnings of over 15 years working with congregations engaged in building projects. The process recommends a committee structure, tasks and goals, and decision-making options designed for committees to work with limited conflict and on budget. $15.00, 47 pp.

The Church for Common Prayer – A statement on liturgical space for the Episcopal Church. This booklet addresses the principles of good liturgical design, focusing attention on the primary symbols of faith, and how to make the building visitor friendly. $5.00, 32pp.

"Churches for Common Prayer" – A video tour of two churches, one new and one traditional building which has undergone renovation. Both properties exhibit principles of good liturgical design, the benefit of flexible space, and are inviting to the guest and future members. $29.95, 20 min. VHS.

Congregational BUILDER – A newsletter on church building and congregational health issues. The newsletter is generally published once a year and is mailed at no cost to all clergy. Laity are invited to be included on the mailing list.

ECBF Loan Terms
The ECBF loans funds for building projects related to the construction, improvement, repair, or purchase of land and building, including churches, rectories, parochial, and diocesan buildings.

• Loans up to $350,000 are available to a diocese for a congregation in the Episcopal Church.
• Loans up to $100,000 are available to dioceses of the Anglican Communion.
• The rate of interest is fixed at the time of application for the life of the loan.
• Current rates: 5 year loan = 6.0%; 10 year loan = 7.25%
• Loans require diocesan co-signature and are non-mortgage, requiring no lien on the property.
• A 2% origination fee on the amount borrowed is paid upon approval of the loan.
• Repayment term is up to 10 years, on a regular monthly amortization schedule.
• No prepayment penalty.
• Loans are based on a viable plan of repayment.
  

Congregational Development
Wonderful buildings are only wonderful when filled with members engaged in ministry. The ECBF developed an expertise in congregational development and now focuses on both the development of congregations and the properties that support their ministries. In 2000 the ECBF President was asked to serve as the Director of Congregational Development for the Episcopal Church Center. Current initiatives include:

• Administering the Episcopal Church’s new focus on research
• Organizing a forum for diocesan staff that are responsible for congregational development.
• Developing an interactive web site that will provide downloadable resources on congregational development, relevant to the size and location of the congregation.
• Conducting the Start Up!Start Over! Congregational Development Seminar. This five-day training on the basics of congregational development is designed for clergy and laity, preferably in teams. The training is for those planting a new church, those seeking new life for congregations where growth is in a plateau or has declined, and for thriving congregations ready for their next step.
• Conducting the !Upward Bound! Advanced Training for Congregational Development. This five-day training addresses the components of a self-differentiated leader and prepares the congregational leader to lead through change, decisions, and conflict.
  

What’s Next
Many early contributors knew firsthand the challenge of funding a building project while the congregation was still developing. Their donations enabled new congregations to focus on growing the membership. To support the ‘2020 movement’ goal of doubling the membership of the Episcopal Church by the year 2020, the ECBF is exploring avenues to offer lower interest loans for growing congregations and new church plants. You can designate a gift to the ECBF for a new-start or congregation that is growing and expanding.