LOANS School Association Loans Financing a loan to purchase, construct or renovate property is a major undertaking. We understand your association’s desire to serve the community in His name while being fiscally responsible. LCEF’s School Association Loans help school associations meet their needs with competitive rates and the full support of LCEF’s passionate staff.

A School Association is an Association of Member Congregations formed to administer and support an LCMS school.

Types of School Association Loans

LCEF offers a number of School Association Loans to help your association reach its financial goals. LCEF can also help with individual congregation financing with a number of loans for churches within the LCMS.

Click here to learn about some of the exciting school projects that Lutheran Church Extension Fund (LCEF) has financed.

Secured Loans may be used for furnishings or equipment repairs and replacement, property purchases and other capital improvements. They may also be used to refinance existing loans.

Your LCEF Construction Loan can help cover the costs of constructing new buildings or renovating existing ones. LCEF’s Construction Loans have just one closing, saving your association time and money.

Construction Bridge Loans provide short-term financing to fill the gap between construction completion and collection of building fund dollars. LCEF’s Bridge Loans have just one closing, saving your association time and money.

This type of loan helps with short-term capital needs or seasonal cash flow fluctuations in your association’s operating budget.

These loans can be used to provide seed dollars to support new or expanding initiatives or working capital for pre-construction related costs. For example, this loan might cover the payment of a new staff member for your Development or Admissions Office or items such as architecture/design fees, engineering fees, market studies, capital campaign expenses and special assessments.

Our SMART Loan for educational institutions is designed to meet the short-term financial needs of LCMS elementary, middle and high school associations and related recognized service organizations (RSOs).

LCEF’s SMART Loan is ideal for:

  • S – Security upgrades and system enhancements, including energy efficiency projects
  • M – Maintenance and other facility upgrades, including playground equipment
  • A – Academic resources for classroom use
  • R – Repairs for both the building and fleet (can also be used for vehicle purchases)
  • T – Technology needs and equipment leases, purchases and upgrades

Benefits & Features

  • First 12 months interest only at LCEF Cost of Funds (COF)
  • Second 12 months interest only at LCEF COF plus up to 2.5%
  • Remaining term (up to 8 years) fully amortized and indexed (COF + up to 2.5%) adjusted monthly, quarterly or annually.
  • 1 and 2 rated loans unsecured. (3 rated may but determined at underwriting)
  • $150K aggregate per borrower.
  • Loan Fee: $500 minimum up to 1% of committed amount.

School Association Loan Rates

Loan TypeRate
Monthly, quarterly or annually - adjustable5.625%
Call for fixed rate options.

Dan Brown

Vice President – National Lending

Blake Brown

Blake Brown

Assistant Vice President – National Lending

Your Guide to the

Construction Lending Process

This Q&A booklet provides ministry leaders with the steps and critical information needed to understand LCEF’s loan process and requirements.

Construction Process Timeline

Download our helpful PDF guide to the view milestones and estimated lead times before your construction start date.