The Board of Missions, Inc. is a division of the Missions Team of the North Carolina Annual Conference of the United Methodist Church. The Board administers a restricted loan fund of approximately five million dollars to assist churches within the Annual Conference with their building and renovation needs. The loan fund was started in the late 1950's. Accumulated interest since that time has enabled the loan fund to grow to its present size. The goal of the Board is to keep the loan fund fully utilized at all times.

No Interest Loans are currently being issued for $50,000. This particular loan is designed for new/emerging congregations. It may be used to purchase either buildings or land.

These loans require a payment against the principal of $5,000 over the five years of the loan.  These payments are to be made on or before January following the year the funds were taken.  The first year’s payment is $500.  Each of the next four payments is to be $1,125 due during subsequent Januarys.  At the end of the five years from the original loan date, the balance of the no interest loan will be rolled over into a 10 year loan at the prevailing rate of interest.

The deed of trust and promissory note for the loan is signed on behalf of the church by the church trustees, the pastor, and the district superintendent. The Book of Discipline prohibits any church officer from being personally liable for a church loan.

There are no closing costs associated with the loan except for registering the Deed of Trust with the Register of Deeds of the county in which the church is located. This cost is typically between $16 and $22.

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Application Process: (Applications available by contacting the Office of Missions)

When the completed form is returned to the Missions Office, the directors of the Board of Missions, Inc. will be polled. When their affirmative vote is secured, a commitment letter which spells out the details of the loan will be issued to the church. The commitment letter is to be signed by the pastor and the chairperson of the trustees or building committee and returned to the Missions Office.

When the commitment letter is returned, a promissory note and deed of trust will be issued to secure the loan. The promissory note must be signed and returned to the Missions Office. The deed of trust must be signed and recorded at the Register of Deeds office in the county where the church is located.

Once the promissory note and deed of trust is properly executed, the loan funds will be issued to the church upon written request by the pastor or the chairperson of the trustees or building committee.  Churches should draw the entire amount of the approved funds within a one year period.

For more information contact the Missions Office of the North Carolina Conference
P.O. Box 10955, Raleigh, NC 27605. Phone: (800) 849-4433 or (919) 832-9560
 

To Download the Procedure for a Five-Year-Loan Click Here

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