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Applying for a Grant or Loan
- Application to the Gateway Board must be approved of by your district superintendent. Discuss your project plan with your district superintendent before contacting the Gateway Board’s executive director.
- After discussion with the district superintendent, contact the Gateway Board executive director and discuss your project. You will be advised if your project is appropriate for the Gateway Board to fund and what sort of assistance to ask for, a grant or a loan. You may be advised to look to other sources first or instead of the Gateway Board.
- If your project is acceptable by the executive director, you will be provided with an application. It must be filled out completely and returned with all required attachments by the application deadline in order to be properly considered by the board of directors.
- You and your project team will be required to make a brief presentation to the board of directors. You are encouraged to bring photographs or video to better illustrate your project and your need, if applicable.
- You will be notified the week after the board meeting by e-mail and letter of the board of directors’ decision.
LOANS AND GRANTS
The priorities for loans and grants of the Gateway Board are in order:
- The financial support to existing churches in expansion/renovation/relocation projects where funds raised by the congregation and loans from commercial lenders are insufficient to complete the project. It also includes guaranteeing loans from commercial lenders where necessary.
- To assist in the acquisition of sites and costs of buildings for new congregations. This may include defraying initial expenses and salary of the pastor until the congregation is able to assume these costs and guaranteeing loans from commercial lenders where necessary.
- The funding of programs and special projects designed for the growth of the local church, and/or a United Methodist ministry independent of congregational support.
- To provide funds for major repairs and equipment replacement where the congregation is unable to raise the funds or to borrow from outside lenders.
- Applications for all loans and grants will be reviewed and signed by the District Superintendent.
- All applications for loans and grants must be made on proper form furnishing all requested information. Applications will be reviewed and decided by the Board of Directors of the Society.
- A promissory note and deed of trust on the property are required on loans at the discretion of the Board of Directors. A conditional agreement may be required on grants at the discretion of the Board of Directors.
- Resolution of the Charge conference to borrow all money in accordance with the Discipline must be furnished.
- A. Any grant of $15,000 or more shall require a Trust Agreement and Mortgage in accordance with the Discipline.
B. Any loan of $15,000 or more shall require a Deed of Trust securing the loan and the Deed of Trust shall be insured by title insurance.
C. Any of the above requirements in 9.A or 9.B may be waived or modified by the Board of Directors. - Fees and charge(including legal, title insurance, recording fees, etc.) incurred as a result of satisfying the requirements in 9.A or 9.B shall be paid by the applicant/grantor/borrower.
Approval in all cases is contingent upon availability of funds.
Whereas the Gateway Board for Mission and Growth-United Methodist Church is the traditional body responsible for new church starts in the Gateway Districts, the following policy has been set forth:
I.The Gateway Board board of directors will receive requests for new church start funding from appropriate conference and/or district agencies, the Bishop and the district superintendent.
- The Gateway Board board of directors will receive and may approve all new church start funding requests.
- All requests must be received preferably 6 months prior to pastoral appointment (or similar mission start) and no less than 3 months. Request must be through New Start application.
- The board may initiate conversations as to new start needs with the appropriate conference and district agencies including District Team of Church Building and Location.
II. For approved starts, a New Church Support Team shall be established.
Membership shall include: district superintendent of appropriate district, new pastor, Gateway Board executive director and other designated board members; others deemed necessary to each specific start.
- There shall be no less than 7 members and no more than 13 members not including ex-officio members.
- Ex-officio members (voice, no vote) shall include the Bishop, other Gateway superintendent(s) and Gateway Board legal counsel.
III. Church Support Team’s duties will include (depending on start model), but not be limited to:
- Establish and review new church budget; establish finance systems deemed necessary
- Serve as personnel committee for staff other than appointed clergy
Serve as interim PPR Committee for appointed clergy - Strategize with new pastor all aspects of congregational recruitment
- Be responsible for report to Annual Conference and regular progress reports to the Bishop
Dissolution of this committee shall occur when new church is constituted or dissolved or deemed capable of proceeding without the Support Team.
IV. The Gateway Board board of directors shall authorize the use of all Gateway Board funds designated to the new church.
- Executive Director shall disburse funds in accordance with that approval and with appropriate verifications, lien protections, etc.
- New Start funding will be awarded based on availability of funds and must be applied for annually.
All New Starts must provide a financial report annually detailing all expenditures of Gateway Board funds during the previous 12 months. This report must accompany all requests for any subsequent funding (regular annual request or interim emergency).
STATEMENT OF INVESTMENT POLICY AND GUIDELINES
St. Louis Mission and Church Extension Society
(now know as Gateway Board for Mission and Growth)
The purpose of the Statement is to establish the objectives of long-term reserve funds management in order to provide direction to the Finance Committee, the Executive Committee, and to the board of the Society in the administration of reserve funds. This Statement will, in turn, establish the parameters for the conduct of investment actions of the chosen investment manager of managers.
It is the policy of the fund that the general objective center on optimum returns. Such optimum returns are to be achieved consistent with reasonable risk as defined by current industry practice and are to be measured on a total return basis. The total return of a portfolio is a combination of interest and dividends plus capital appreciation or less capital depreciation (realized and unrealized) for the periods measured, net of management fees. Evaluation of investment managers should span at least one economic cycle. Disappointing relative results during significant periods with the cycle should be examined.
Investment performance will be monitored on a quarterly basis with annual reviews considered a minimum requirement.
The investment process is expected to operate in accordance with accepted fiduciary provisions.
Funding patterns indicate that there should be no unusual liquidity demands in the foreseeable future and therefore need not be a major consideration in the investment process. Investment income shall be added to the principal of the portfolio until the manager or managers are notified otherwise.
Investment Guidelines
This fund is expected to emphasize balanced objectives with a growth orientation. Asset allocation ranges are as follows:
Minimum Maximum
Cash and equivalents 0 30
Equities (including convertibles) 40 75
Fixed income securities 25 60
Equity Characteristics
Equity positions should number no less than twenty (20) nor more than fifty (50). No purchase or portfolio valuation should extend an individual equity position beyond five percent of the total portfolio. Equity investments shall be limited to common stocks and convertible securities and can include equity positions that do not pay a current dividend.
Fixed Income Characteristics
Fixed income investments shall consist of obligations of U.S. Government, Government Agencies, and corporate issues rated BAA or better with an average quality no lower than A. The investment manager may continue holding those securities which decline below BAA if deemed appropriate. No fixed income commitment, other than those carrying a U.S. Government guarantee, should exceed five percent of the total portfolio. Bond maturity decisions will be at the discretion of the investment manager or managers.
Cash Reserves
Cash reserves are to be invested in any security providing safety, competitive returns, and appropriate liquidity. No more than ten percent of the portfolio should be invested in obligations of a single issuer unless it is U.S. Government insured.
Documentation
A quarterly investment summary will be provided which includes asset allocation at book or cost and at market by sector, including equities, fixed income securities, cash and equivalents, percentage of total fund by section, yield at book and market, and estimated annual income.
Also included in the quarterly Investment Summary will be:
A detailed statement of positions by individually named securities showing number of shares, par value or units held and their respective book and market values on a per unit and total holding basis.
A statement of the total rate of return for the Fund and of each sector of the Fund compared with a universe of managed funds, for the year-to-date and for the time horizon ending with that three months.
A quarterly Statement of Transactions detailing all principal and income cash transactions.
An annual report will be prepared covering the Fund’s fiscal year. Such report to include a detail of all security acquisitions and dispositions as well as gains, losses and fees.
- No guaranty request can be accepted unless a) the lending institution
reasonably requires the guaranty a condition of the loan and b) the request satisfies all other requirements of the Gateway Board. - Church must complete guaranty request form exactly as it is printed,
without deviation. - Minutes of the charge/church conference of church or administrative group/board of cooperative parishes or any related agency approving the a request for a guaranty from the Gateway Board must be submitted.
- Minutes from the district committee of Building and Location approving project must be submitted, if applicable.
- All underlying loan documents from financial lending institution must be submitted for Gateway Board review.
- Evidence of church’s/agency’s organizational status and authority to obtain loan and execute those documents must be submitted.
- Church/agency must provide financial statements for the last three years and a proposed plan for repayment of loan.
- Board may elect to negotiate a partial guaranty rather than guarantee the full amount.
- Total amount of guarantees should not exceed 90% of total assets.
- The Gateway Board will not guaranty a loan after the principal has been paid down by 75% or the bank agrees the church is reliable sooner.
- Any renewal/refinancing of a Gateway Board guaranteed loan must be approved for continuation by full board, unless otherwise directed by the full board.
- The Gateway Board reserves the right at its discretion, to decline a request for any reason. The Gateway Board may require that other conditions be satisfied, including without limitation or condition, that the Gateway Board’s own loan guaranty documentation be used.
Policy on Delinquent Loans
To be signed by all loan recipients.
To assure the accountability of congregations with
timely repayments in all contractual agreements.
An account is delinquent when agreed upon regular payment is thirty (30) days past due.
Actions to be taken by Congregation in a delinquent situation:
- The congregation is responsible for notifying the Gateway Board of impending/current delinquency in order to negotiate an amicable resolution.
- Any new agreement pertaining to repayment of loan shall be approved by a charge conference.
- Either of the above requirements may be waived or modified at the board’s discretion.
Actions to be taken by Gateway Board in delinquent situation: A first notice will be sent fifteen (15) days after account has become delinquent.
- If there is no response from church within thirty (30) days, a second notice will be sent to church’s chair of Trustees and copied to the chair of the Administrative Council/Board, to charge/board secretary, to pastor, to district superintendent and to Bishop.
- If there is no response after the second notice, beginning after sixty (60) days, delinquent charges of 5% of regular payment shall be added for each payment missed.
- No additional Gateway Board funding, either loan or grant or guaranty, will be available to delinquent churches until delinquency is resolved to the board of directors’ satisfaction, nor, if inquiry be made, can the Gateway Board recommend any United Methodist or related agency to provide delinquent churches with any funding, either loan or grant until delinquency with the Gateway Board is resolved to the board of directors’ satisfaction.
- Any of the above requirements may be waived or modified at the board’s discretion.