Pastor, Tithing Sway Church Loan Risks
Come Sunday, pews across America fill with parishioners seeking a spiritual uplift as pastors share sermons to help congregations make it through another week.
But for budding preachers with dreams of overseeing their own flocks, they have to first get past the strict scrutiny of lenders who are likely leery of originating loans for properties that some experts see as the most risky type of commercial real estate to be involved in.
“Every church lending opportunity should be evaluated on its own merits, but we strongly recommend to our credit unions they avoid small churches with less than 200 members or independent churches,” said Mike Gudely, president/CEO of Innovative Business Solutions, a Fort Mill, S.C.-based business lending CUSO.
The reason being is that evangelical independent churches don’t have the financial and administrative backing the mainstream denominations do, Gudely said, adding if something happens to an independent church, they have to go it alone.