LOUISVILLE, Ky. (KT) – The Kentucky Baptist Foundation’s board has approved a new way to serve and strengthen Kentucky Baptist churches with the development of a church loan program.
The KBF Executive Committee met Thursday morning and unanimously approved moving forward with the program, said President French Harmon.
The KBF will be working with WatersEdge – the Baptist Foundation of Oklahoma – to provide loans to Kentucky Baptist churches and entities as requested, Harmon said.
By offering these loans, the KBF should be able to assist churches in construction, renovation, revitalization and emergencies that may arise.
“We have been quietly working on this project for about two years, talking to WatersEdge CEO Robert Kellogg,” Harmon said. “We’ve been discussing the opportunity and excited it all came together.”
Harmon said the “primary audience in Kentucky is smaller churches. We are a convention of smaller churches. Most banks aren’t in the business of loaning money to churches these days. It’s a different climate in a lot of ways.”
The North American Mission Board (NAMB) has said that 4,000 churches are closing a year, which may be leading to hesitancy from lending institutions. But the KBF has a passion to give churches – big and small – the resources they need to spread the gospel.
“We are in the church-building business. We want to help build churches in Kentucky,” Harmon said. “We are targeting loans around $500,000 but there is no limit, up or down.”
Churches may need a new roof or fellowship hall renovation that does not have a high price tag and loans will be available to them too from KBF.
“I believe our foundation, partnered with WatersEdge, can assist a church in a time of need,” Harmon said. “We are Baptists, we want to help each other, and we want to make it in terms that you can pay back the money without breaking the bank.”
Todd Gray, the executive director-treasurer of the Kentucky Baptist Convention, saw it as a huge opportunity for Kentucky Baptist churches.
“Kentucky Baptists can be collectively thankful for Dr. French Harmon and his capable team discovering fresh ways to serve Kentucky Baptist churches such as they are doing through the new KBF Church Loans Programs,” he said. “When a church is looking for a way to finance a new fellowship hall or the renovation of their worship center, they will have a trusted partner they can turn to for help in the Kentucky Baptist Foundation.”
Austin Wilkerson, who serves as general counsel for the KBF, said the program can help Kentucky Baptist churches of all sizes.
“It’s another example of the Kentucky Baptist Foundation’s church-first mentality,” he said. “Banks are hesitant to loan to churches. We saw the need that we could help solve. The loan program is for every single size of church. Even the small churches can apply for a loan.”
Chief Operating Officer Kim Fulkerson said those applying for loans will get a more personal touch from the KBF. “It’s personal contact between real people instead of talking to automated assistance,” she said. “This is another service we offer to our churches.”
The church loan program is the latest development for KBF, coming on the heels of an investment opportunity through Great Commission Certificates that was recently initiated. It allows Kentucky Baptists to enhance their own financial resources while also contributing to ministry efforts.
The KBF is seeking missional investors to secure a good rate of return for themselves but also advance the gospel.
KBF has had remarkable success with its Short Term Fund (STF) helping Kentucky Baptist churches, so it was a natural next step to offer Kentucky Baptist individuals investment opportunities.
Churches interested in learning more about loan opportunities or missional investing, can visit kybaptistfoundation.org or contact the KBF directly at 502-489-3533.
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