As you likely know, we are currently under construction on a long-awaited building expansion. A significant portion of the expansion has been funded through a highly-successful Capital Campaign and subsequent financial gifts from congregants. The remaining $2.8M was set to be funded through a traditional bank loan. The interest rate on the planned traditional loan was floating, meaning it does not lock in until the construction project is completed.
However, since beginning the project, interest rates have more than doubled and financing costs have tripled. As a result, we began pursuing alternative funding options. In consultation with over 100 members, outside financial experts, our Board of Trustees, our Building Expansion Team, we have identified member-funded promissory notes as the most fiscally responsible option.
Promissory notes are a written agreement between a borrower (us, the church) to pay back a loan given by the lender (you, the member). Foothills Unitarian has used member-funded loan twice in our history with great success and the practice is an accepted and encouraged approach within the Unitarian Universalist Association.
Here’s how it works: Bona fide members of Foothills who live in the state of Colorado apply to loan the church a certain amount (minimum $10,000). Once approved, members will receive an agreement to sign, specifying the loan amount, interest rate (3.82%), and date of maturity (March 2028). The church will then repay the amount with stated interest.
Our Member Funded Notes Committee is overseeing this process. The committee members are: Jerry Hanley, Sue Ferguson, Erik Martinson, and Tom Rhodes.