Loan Covenant Agreement Template

LOAN COVENANT AGREEMENT FOR CHURCH DEVELOPMENT CHURCH NAME

With God's help the Church Development Committee (CDC) and [congregation] to covenant for the purpose of assisting [congregation] with an interest-free loan of $####. The loan shall be used to [goal or purpose] and repayment is expected beginning DATE to be made in ## TERM installments. As each party has shared the discernment of renewal goals, they shall assist the one another to accomplish [goal or purpose] as part of [congregation]'s renewal plan. As a covenant partner [congregation] shall provide evidence that the Church Development Committee loan is used for the intended purpose, and that the congregation is make appropriate efforts to budget for timely repayment. [Congregation] will meet with and report to the Church Development Committee each year during the renewal project and loan repayment period in accordance with the established processes of the Church Development Committee. The [congregation] must submit a loan repayment schedule using the attached form or something similar. A more aggressive repayment schedule may be resubmitted at any time and will be accepted. A change to the repayment schedule that is less aggressive must approved in accordance with CDC procedures. Accepted repayment schedules become an official part of this agreement. As a covenant partner the Church Development Committee will review progress with [congregation] each year. If, despite [congregation]'s best efforts the original repayment terms cannot be met, the Church Development Committee may renegotiate repayment terms with [congregation]. The Church Development Committee's goals are to assist [congregation] in achieving its renewal goal while restoring the loaned funds to the Church Development Fund in order to assist other renewing congregations. The Church Development Committee and [congregation] acknowledge God's guidance and empowerment are critical in the renewal process. Together we agree to this Covenant Agreement and to work together to prayerfully discern God’s presence in the midst of our work.

Pastor

CDC Chair

Moderator

Conference Board Representative

Date

LOAN REPAYMENT PLAN CHURCH NAME

Description of Repayment Plan:

______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ Starting Loan Balance: Date to be Sent

Amount

Conf Recvd Date

Remaining Balance

Comments

Revision to Repayment Plan must be submitted to CDC Chair and signed below by Pastor or Church Officer