"I believe it is important for a church to implement and maintain certain records. In the coming months, the church is going to apply for a loan for new construction. What records do I need to use in applying for this loan?"

Yes, it is important for a church to keep good and accurate records. If you are planning on a loan, then there are certain records needed by the financial institution.These include:

 

1. Three year's Profit & Loss statements

 

2. A current Statement of Financial Position (Balance Sheet)

 

3. Proforma of the next two years Profit & Loss Statements

 

4. A written history of the church

 

5. A written history of church leadership

 

6. A chart or document showing the current membership numbers and

    how the church has grown the past 10 years.

 

7. History of the church payments on any mortgage it currently has

 

8. Appraisals of property that may be used as collateral

 

9. Written and drawn up plans of the new constructon or remodelig project

 

10. Copy of church's Artricles of Incorporation

 

In some cases, other information may be required by that particular lender, but the information noted above is the basic information usually required of the church. In addition, depending on the amount of the loan request, the lending institution may ask for financials from an independent accountant rather than church processed reports.

 

It is also a good plan to have a professional assist with putting together a complete loan packet that can be presented to the lending institution. The more accurate and current information provided will assist the lender in making a quick and favorable determination. This can also save the church money in the long run by having a professional provide this packet.

 

The church, for its own protection, will want to be certain it has the proper resolutions and authorizations to proceed with securing a loan and starting construction.