The loan may be for the purchase of equipment or capital improvements, but cannot be used for operating expenses, and

Borrowers must make a minimum monthly repayment of $100.

For loans of $25,000 or less: the loan must be fully amortized over a period equal to or less than sixty (60) months.

For loans between $25,001 and $165,000: The loan must be fully amortized over a period not greater than one hundred eighty (180) months.

The maximum loan amount generally permitted for a single borrower is 10% of the total amount of LACE’s loan portfolio at any given time, including approved but undisbursed loans.

LACE loans funds to Borrowers for (1) financing capital expansion projects (particularly for the construction, renovation, repair or purchase of facilities and real property for worship, education and ministry); (2) refinancing existing capital indebtedness; (3) making major purchases of equipment; and (4) for other projects that serve to extend the Lutheran church and its mission. If funds are available, LACE provides loans for the above purposes when LACE is satisfied from its review of the application form and related documents that the potential Borrower (“Loan Applicant”) will be able to meet LACE’s repayment requirements. LACE generally does not loan funds for general operating expenses.

Except for construction loans or special situations, LACE generally requires that Borrowers make minimum monthly payments that will amortize the loan in 30 years or less. In the case of construction loans, LACE typically requires interest only payments for up to the first six months of the construction period. Thereafter, the loan payment will typically be a fixed amount of principal and interest on the entire loan. Prepayments on loans may be made on any type of loan at any time without penalty. LACE requires Borrowers to retain their own legal counsel and to pay miscellaneous charges for recording fees and any special state, county or other governmentally imposed fees.