Need a loan? Comparing LCEF to Commercial Lenders is comparing Apples to Oranges! My grandmother was a really smart woman. And while I can’t drink it today, she made the most phenomenal sweet-tea that I absolutely loved growing up. I’d watch her roll out the lemons and add the sugar, all the while looking forward to that wonderful iced cold drink that seemed to taste better than any soda pop on the market. It was during those times that she provided me with some of the best life lessons.
It was during one of these talks while she was working that she shared a lesson that I will forever follow and I hope I passed along to my kids and someday, grandkids. Her simple statement was, “Kirk, if you are going to make a comparison, make sure you compare apples to apples and oranges to oranges.” Common sense, right? Well sometimes we think we’re using common sense, but in actuality, we end up comparing apples to oranges and think we’re making the best decision.
This is something that happens when comparing church loans between a commercial lender and a loan from LCEF. You see, there are some components that appear to be the same—interest rates, projected monthly payments, additional expenses, etc. We try to put those numbers in an excel spreadsheet and conduct that “apples’ to “apples” comparison. Unfortunately, the comparison doesn’t and shouldn’t end there.
I will never talk down a commercial lender. They provide a valuable service and many support wonderful community projects. However, anything that looks like profit is profit with any bank. These profits go toward executive salaries and to their investors and go on to build more banks.
On the other hand, LCEF is the Lutheran Church—Missouri Synod. It is a closed environment in that our investors are the Lutherans who are sitting in the pews beside you. Anything that looks like a profit goes back to the LCMS. It literally goes to build more churches. In September of this year, LCEF announced they were providing over $2.2 Million back to the Synod and partner Districts. The Southeastern District received over $120,000 of those funds which are provided for ministry and ministry expansion. You see, as a non-profit, anything that remotely looks like LCEF profit can’t be kept. LCEF is also providing funds to reduce pastors’ personal debt. There are many more examples of LCEF’s contribution back to the LCMS. So, you see, all funds remain within the LCMS.
The bottom line is that as you consider a loan for your congregation, make sure you are looking at the whole picture and do not inadvertently compare the apple to the orange. LCEF provides a great Stewardship opportunity while providing very competitive interest rates.
If you have any questions or would like more information on LCEF investment opportunities, please contact Kirk Hymes. He can be reached at khymes@se.lcms.org