Types of School Association 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

• Loan structured up to 10 years, depending on needs
• Up to $150,000
• 0% interest for first 12 months
• Interest for second 12 months determined using LCEF’s Cost of Funds (PDF), adjusted annually
• Interest for remaining term of loan determined using LCEF’s Cost of Funds (PDF) plus up to 2.5%, adjusted annually
• Low closing fees and no prepayment penalties