Church Loans Blog

Pastor Says Recession Can Bring Revival

Mon, 16 Nov 2009 22:31:52 UTC

An Argentine revival leader whose church doubled in size after a financial collapse in his nation believes the American church could see revival in the midst of the current economic recession.

Claudio Freidzon, pastor of Rey de Reyes church in Buenos Aires, says a three-year recession in Argentina brought an unparalleled time of spiritual renewal as believers learned to trust God, not money.

He believes that despite the financial turmoil in the U.S.—or perhaps because of it—the American church has an opportunity to see a similar renewal.

“We’ve seen here that after every crisis we have a great breakthrough in the spiritual realm,” Freidzon told Charisma.

During the Argentine recession from 1999 to 2002, the peso plummeted in value, resulting in runs on banks as anxious citizens tried to withdraw their money before the decline grew worse.

When the government imposed stringent rules to save the banks in 2001, violent protests broke out in the streets.

Freidzon, who was a leader in a 1990s revival that saw thousands come to Christ at evangelistic events held across Argentina, said his church saw declines in church giving because of the crisis, but ramped up its outreach efforts nonetheless.

Rey de Reyes offered medical and dental clinics throughout Buenos Aires, and assisted with job searches and construction projects, among other efforts.

Before the economic collapse, Freidzon’s church drew roughly 12,000 people each week. But today, he said, Rey de Reyes has more than 25,000 members and hosts seven worship services every Saturday and Sunday—“all of them packed.” Now, seven years since the economy began to stabilize, Freidzon’s church is seeking to transfer its influence into politics.

The church hopes to open a Christian university that will train youth for both secular and ministry work.

“I realize the importance of having born-again people in high levels,” Freidzon said. “I believe we are going to prepare the next Christian president of Argentina.” He said the government used to block the church’s evangelism efforts, but as it began doing more to help the poor, relations improved.

He said lawmakers have pledged to help as plans for the university unfold, and the government has begun classifying their ministry work as being “of interest to the province,” a stamp of approval that gives the church broad access.

“That means that they open the province,” he said. “They say: ‘You are welcome.

Do whatever you want. Preach wherever you want. Go to the schools, go to the jails, go to the streets.’ That is new for us.” Argentina’s economy continues to struggle, with the global recession taking its toll and a severe drought worsening unemployment.

But Freidzon is optimistic about his nation’s future. He said more and more government officials are contacting the church for prayer, adding that he has met Vice President Julio Cobos and is hopeful he will one day pray with President Cristina Fernandez de Kirchner.

Freidzon said the 1990s revival that was marked by large-scale prayer meetings never completely ended. “In our church, 18 years since the Holy Spirit visited us, the people are still looking for more,” Freidzon said. “They are excited... Here, they are still hungry for more of God.”

Choosing a Builder

Tue, 25 Aug 2009 13:25:11 UTC

When choosing a builder, it is important to consider their experience and expertise. An RFI (Request For Information) can be created to both help qualify the builder and to discover the strengths you need in a building partner. The following are things to consider before making your decision.

What is the builder’s history of on-time performance?
What is the builder’s history of staying on budget?
How does the builder handle change orders?
What warranty does the builder offers? What is his history of satisfying the client in warranty work?
Does the builder only build churches? If not, how many churches has he built?
How does the leadership feel about the person who represents the company?

Remember, you may spend 18 months to 2 years working with the person. Do not underestimate the importance of personality.

Does the builder offer a Guaranteed Maximum Price?
How does the builder handle issues of disagreement with the client? Ask the builder to give you the name of a church where the project did not go as well as the client anticipated. How was the issue resolved?
Don’t just ask the builder for references. Ask the builder to supply you with the name of churches they have built.

A good builder wants to come as a partner and will desire to bring the project to completion on time and within budget: Examining their performance history will be a good barometer of what you might anticipate with your project.

Dave Blattner
Loan Consultant
AG Financial Loan Solutions
dblattner@agfinancial.org

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What Can My Church Do to Qualify for the Best Loan?

Tue, 25 Aug 2009 13:23:15 UTC

Prior to beginning the loan application process, it is important for pastors and church boards to understand the factors considered by lenders when evaluating a church loan. Although specific underwriting criteria vary, it is fair to say that most lenders evaluate church borrowers on three broad areas of performance. These are known as the three C’s of underwriting: character, cash flow, and collateral.

Most lenders place considerable emphasis on assessing the overall character of the borrower. Specifically, will the church honor its commitment to repay the loan? In evaluating this measure, lenders look for a long history of operations, a good credit history, and strong, committed church leadership.

The second focus is on cash flow. Lenders want to see a track record of positive income and attendance trends as well as a positive operating margin (revenues in excess of operating expenses). Flat or declining attendance or income can be a concern and operating losses mean that it may be difficult for the church to absorb a monthly mortgage payment within its budget.

Finally, lenders need to know that the amount of collateral (real property such as land and buildings that will secure the loan) is sufficient to repay the loaned funds in the unlikely event of default.

Churches interested in securing a loan with favorable rates and terms should be prepared to demonstrate strong performance in each of these three areas.

Randy Smith
VP, North Central Region
AG Financial Loan Solutions
rsmith@agfinancial.org

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