Nonprofit organizations are able to take advantage of commercial loan programs featured through Commercial Lending Corporation. These loans are designed to help provide you with the necessary funding needed to grow and expand your operations. There are specific qualifications for these programs that can be slightly different from traditional programs.
For example, churches are able to obtain financing to purchase, refinance, rehabilitate, or build a brand new structure. The church must have a minimum of at least 200 members, have a three year operating history, be a 501C3 organization, and be tax exempt. Depending upon the credit history and score of the church, the loan may require personal guarantees from credit-worthy members, for a short period of time. Once the church is able to satisfy income achievements needed for this type of loan with a 12 month trailing basis, members are exculpated or excused from the loan.
Eligible properties able to qualify under the church loan program through Commercial Lending Corporation (CLC) include all church structures, sanctuaries, parsonages, fellowship halls, offices, residential, apartments, schools, day cares, senior centers, and all other church-owned properties. Any net revenues received from other operations are combined with church revenues in order to establish a debt service coverage ratio. Further, the church should occupy at least 25 percent or more of the property, on a square foot basis. You can learn more about this program, as well as others available for nonprofits, by contacting CLC directly and speaking with one of their experienced loan consultants.
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