The sale of our current facilities (church, children’s building and four homes we own behind the church) will fund the entire cost of remodeling our new church facilities (the former Steinmart at Sunrise Mall). However, until the facilities sell we need funds to enable the work to continue without slow down or stoppage. We can get those funds from a bank for 8.5% interest or we can do what enabled us to build our current sanctuary in the first place.
Forty years ago, The Summit Church (which was called Faith Temple at the time) was a congregation of about 120 people who felt God wanted them to step out and do more to reach Corpus Christi with the gospel. They were an established congregation but during their time in operation they used their resources to reach their community and support missions effort to reach the nations. Consequently, their financial reports did not show huge reserves or excess funds. This made banks nervous to loan to them for what was a huge step of faith on their part – the building of our current facilities.
As they prayed the Lord showed them a way they could pull together, pool their resources and accomplish what seemed impossible for a church their size. In addition, this plan also provided a great benefit to those participating. It was a win for the church, a win for the members of the congregation and a win for the city as Faith Temple was able to quadruple it’s capacity and outreach to the community.
Forty years later, this generation stands right where they did in 1972. We are a growing congregation with increasing income but financials that show we have invested in outreach – feeding the homeless, reaching out to our community and supporting missions in over 25 nations of the world. In order for us to “expand the place of our tent” we need to find a way to do more than a congregation of our size should be able to do.
What they did forty years ago was commit to remain faithful in their regular tithing and giving (to enable the continued ministry of the church), commit to give sacrificially to the building project but they also went into their savings accounts, retirement accounts, any place they had funds that they would not be needing for the next few years and offered those to the church for an interest rate higher than what they would be able to get in a CD or savings account but at a rate less than the church could obtain from a bank. This was a win-win and enabled them to build the facilities we currently enjoy.
We want to use that same plan again for us to take this next step of growth and influence in our community. If you have funds that you will not be needing for the next 3-5 years, or longer, and you would like to see them put to use for Kingdom of God purposes you can make them available to the Summit Church. In exchange, we will give you a Promissory Note at a 6.5% annual interest rate. That is 2% less than we have been able to get at a bank (which is a “win” for us as a congregation) and probably much more than you are currently earning on those funds (a “win” for you).
SOME Q & A
Q – How much do I need to have in order to invest?
A – While we want to enable as many people as possible to participate, we also want to limit the amount of bookkeeping involved so we are asking a minimum investment of $1000. Obviously there is no amount too large and we really need some folks to who can step up with significant amounts for us to accomplish what we need to do.<>/p
Q – What time frame are we talking about?
A – As little as a year but we are asking you to consider a 3-5 year commitment, even longer would be helpful. Because this is family pulling together and pooling our resources to do what we feel God has called us to do, we are not offering a higher interest rate for longer periods of investment we are just asking you to consider at least 3-5 years so we can stretch out the obligations to pay back.
Q –Once the building sells, will all the Promissory Notes be paid back?
A – Probably not. We will be purchasing the new facility also at an interest rate of 8.5% so it would be advantageous for us to continue to “pay ourselves” 6.5% and pay off the current owner as soon as possible.
Q – How long does it look like we will need the funds from the Promissory Notes?
A – Once our current properties sell, and as we continue to be faithful in our tithing, regular giving and giving above and beyond to “More Seats for our Peeps” we calculate that we could very easily be debt free once again within 5 years. That is the reason we are asking you to consider a 5 year commitment of your funds if that is at all possible.
Q – Will my giving be tax deductible?
A – No, since it is an investment on your part not a “gift”. In fact, once you receive the funds back you will likely need to pay tax on the interest earned.
Q – Can I invest funds that I currently have in an IRA?
A – We are currently checking into the possibility of this investment qualifying as a Real Estate Investment Trust (REIT) which would allow you to invest IRA restricted funds. Check back here and we will post an answer as soon as we find out if it is possible.
Q – What if I sign up for 5 years and need the funds earlier. Can I get them back sooner?
A – Obviously that would depend upon what funds we have in reserve at the time. We will do everything we can to accomodate such a request (without a “penalty” for early withdrawal) but we can only do what we can do. We can’t guarantee funds would be available before the due date of the note.
Q – Can I let family and friends know about this opportunity?
A – Yes. While this is not a “public offer”, it is our church family pulling together and working together to enable us to do more to reach Corpus Christi, if you have friends or family members that might have an interest in partnering with us, feel free to share this with them.
Q – Is this note insured or backed by collateral?
A – This is an unsecured note. Obviously it is not FDIC insured nor will note holders have a lien against any of the church properties. Again, this is a step of faith on the part of all of us because we believe in what God is doing at the Summit Church and want to be a bigger part of making it happen. The note is backed by the integrity of the Summit Church and our desire to honor God in all we do, including the stewardship of the funds He entrusts to our use.
Q – How often is interest paid?
A – Interest will compound annually and be paid one time when the note comes due. NOTE: We may also pay both principal and interest accrued to date earlier than the term of the note without penalty. In fact, it is our hope that we can fulfill all obligations and be debt free again within 3 years – five years conservatively speaking but we are working and believing to do it all in three years.
Q – What is my next step?
A – If you have additional questions or are ready to step out in faith and invest in what God is doing among us, contact Pastor Mike or Pastor Rick at the church – (361) 992-9921. They will meet with you to make sure everything is clear and get you signed on to participate in this family venture.