Church Extension Fund FAQ and Glossary
Frequently asked questions
What is a church extension fund?
A church extension fund is a ministry-affiliated lender that raises money by selling notes, bonds, or certificates to investors and uses it to make loans to churches and related ministries. Most are connected to a denomination.
Are church extension funds FDIC insured?
Generally no. Church extension fund investments are not bank deposits and are typically not insured by the FDIC or NCUA. Repayment depends on the fund's financial condition. Always confirm with the specific fund.
Who can invest in a church extension fund?
It depends on the fund. Some accept only members or affiliates of a denomination, and many can accept investments only from residents of states where they have made the required filings. Others are open more broadly. Each fund's offering circular states who is eligible.
How do church extension fund rates compare to banks?
Rates are set by each fund and change over time, so there is no single answer, and this directory does not publish rates. To compare fairly, look at the term, whether the rate is fixed or variable, how interest is paid, and what you give up in liquidity and insurance. A higher stated rate is not automatically better when the risks differ.
How is a church extension fund different from a bank or credit union?
Banks and credit unions take insured deposits and are regulated as depository institutions. Church extension funds raise money by offering securities, usually under an exemption, and lend mainly to churches. That difference affects insurance, regulation, disclosure, and liquidity.
What are the risks of investing in a church extension fund?
Common risks include borrower default, falling property values, limited liquidity, interest rate changes, and the absence of government insurance. The fund's offering circular lists the specific risks. This is general information, not advice.
How do I apply for a loan from a church extension fund?
Contact the fund's lending team, confirm that it serves your denomination and state, and be ready to share financial statements, giving history, a budget, and project plans. The fund will then underwrite the request, order an appraisal, and take a recommendation to its credit committee or board.
How can my church tell if it is ready to borrow?
Lenders look at coverage of loan payments, loan-to-value, reserves, giving trends, existing debt, and stability. The loan readiness self-check on this site scores those areas, explains the weights, and builds a 90 day plan. It is informational only and not a credit decision.
Do church extension funds lend outside their denomination?
Some do and some do not. Many focus on congregations of their own denomination, while others lend to partner or unaffiliated churches. Check the fund's listing and ask the fund directly.
Is this investment advice?
No. This directory is for information only. It is not an offer, a recommendation, or investment, tax, legal, or lending advice.
How do you get your information?
From each fund's own public website. Every detail shows the page it was read from and the date. We do not publish rates, assets, staff details, or personal contact information. See About this directory for the full method.
I run a fund. How do I fix my listing?
Use the Report a correction link on your fund's page, or the contact page linked from About this directory. Changes are based on what your fund publishes on its own site.
Glossary
- Church extension fund (CEF)
- A ministry-affiliated lender that raises money from investors and lends it to churches and related ministries.
- Collateral
- Property pledged to secure a loan, commonly a mortgage on church property.
- Demand note
- A note the investor can generally redeem on request, subject to the fund's terms. The rate can change.
- Denomination
- A religious tradition or network of congregations. Many funds are affiliated with one.
- FDIC and NCUA insurance
- Government deposit insurance for banks and credit unions. Church extension fund notes are generally not covered by it.
- Note, bond, or certificate
- A debt instrument issued by the fund. The investor lends money to the fund and the fund agrees to repay it with interest.
- Offering circular
- The disclosure document a fund provides to prospective investors. It describes the offering, the fund's finances, and the risks.
- SIPC
- An investor protection program for brokerage customers. Church extension fund notes are generally not covered by it.
- State registration
- Many states regulate securities offerings, so a fund may offer its notes in some states and not others.
- Term note
- A note with a stated maturity date. Early redemption rules vary by fund.
Next: investing guide, church loans guide, loan readiness self-check, or the directory.
Important information
CEF Core publishes this directory for information only. It is not an offer to sell, or a solicitation of an offer to buy, any security, and it is not investment, legal, tax, or lending advice. We are not an offeror of securities, a broker-dealer, or an investment adviser. Details come from each fund's own public pages. We have not independently verified them, and they may be incomplete or out of date. A listing is not an endorsement, rating, or recommendation, and listings appear in alphabetical order. Church extension fund notes are generally not FDIC or NCUA insured, and offerings may be available only in certain states and to certain investors. Confirm all details with the fund and read its current offering circular before you invest or apply.
Directory information only; not an offer or advice.
CEF Core sells software to church extension funds. Our relationship with a fund does not affect whether or where it appears in this directory, and listings are alphabetical.