It makes perfect sense. Using liquid assets like Money Market Accounts to purchase U.S. Treasuries that can be leveraged at 2.5% Interest Only on the amount drawn. Even GOD would say... That's CHEAP MONEY!!! Our SBLOC - Securities Based Line of Credit then becomes a Church Financing Alternative for Churches everywhere. Unlike a traditional Commercial Mortgage that would require a Church to provide proof of things such as steady attendance, number of members and giving totals. Start-Up Churches and Churches that are looking to expand, often run into difficulties when banks ask them for the numbers. They even ask... "What denomination are you?" It's because they have to be main stream.
There are also many other reasons why Churches find it hard to obtain financing, but there's one underlying fear that holds lenders back. It looms in the back of the mind of every banker that would lend to the Church. NOBODY wants to foreclose on GOD!!!
So, with that being said - taking the path of a SBLOC would cast out that fear. The buildings, structure and land are no longer the collateral. The investments are safe, fruitful and multiplying. Church expansions are helping people in time of need.
GOD is happy and the good stewards of the Church are happy!!!
