Heartspring Methodist Foundation offers loans to the agencies and institutions in the Texas Conference of the United Methodist Church.
The Foundation's lending program serves two purposes:
- Â To provide a sound and profitable investment of Foundation funds;
- Â To make low-cost, competitive financing available to credit worthy Texas United Methodist churches
      and agencies.
These purposes are in keeping with the Foundation's purpose as stated in the Articles of Incorporation ". . . to carry on an effective program of encouraging Methodist people in Texas to be good stewards of their present and future resources."
When considering finance options for your next project, we invite you to complete our loan application online or by printing and filling out the paper copy. For answers to your questions and a detailed discussion of the specifics, please review our loan policies and requirements.
Types of Loans
Heartspring Methodist Foundation offers a variety of loans and related services.
Expanding
Develop a financial plan that will incorporate ministry, stewardship and fundraising while determining a "safe" debt level.
Refinancing
Rates are at historic lows. Refinancing your debt may lower your total interest expense which increases funds for ministry.
Line of Credit
Most ministries do not receive their monthly income and support in equal amounts. Often there is some "lean periods" throughout the year. A line of credit can provide a "bridge" during the low income months and ensure that all ministries and programs are funded.
Mortar to Mission
Combine our services for a total and complete experience. We offer a number of products and services that can be "bundled" together. At Heartspring Methodist Foundation we understand the total ministry of agencies and institution. A loan can be bundled with an endowment development, educational programs and other consultation. For more information, visit Mortar to Mission.
Loan Rates
Heartspring Methodist Foundation does not have a "set rate" for loans. We simply offer the very best rate we can for your loan. Because we are a non-profit lender, we do not have to earn a profit to pay to shareholders (like a commercial bank) so our objective in lending is to cover our administrative costs. Consequently we can often offer lower rates than commercial banks or other lenders.
Factors that determine the rate we can offer you include liquidity, market conditions, size of loan, terms (fixed or floating rate) and collateral, among others.
Whether your project is large or small, we at Heartspring Methodist Foundation look forward to bidding on your loan. Please review our loan checklist for information needed for a loan application.
Qualifying for a Loan
A loan to a United Methodist agency or institution is essentially a cash flow loan. In the loan application, you must show that you have adequate cash flow to make the payments over the life of the loan.
In case of a major building program agencies and institutions typically conduct a capital fund campaign. (usually pledges collected over a three year period) The results of the capital campaign along with current financials will determine a safe debt level. The Foundation would make a three-year interim / construction loan. At the end of the interim loan the agency would close on a long-term mortgage of up to 20 years. Cash flow is the key. The annual income along with a reasonable growth rate must show the ability to fund the entire cost of the monthly payments along with the ministry and programs of the agency.
Contact Betty Millard for assistance in conducting this analysis.
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