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Episcopal Capital Loan Fund (ECLF)

The Episcopal Capital Loan Fund (ECLF) is an endowment fund created in the 1950s that provides two types of loans to congregations. Both require having an audit on file with the diocesan Finance Department.

  1. A short term loan to fund capital campaigns: the amount borrowed may be up to 90% of the face value pledged with a payback over three years (which is the usual life of a capital campaign). The interest rate is 5% for both parishes and missions.
  2. A long term loan for major building projects: the payback period is twenty-five years with rate of interest at 5% for both missions and parishes.

The Ward J. Herbert Fund Board and the WJH Fund Executive Committee administers, reviews and approves ECLF loans. Decisions on loans are ratified by the Diocesan Council before funds are disbursed.

Any parish or mission, or any agency supported by or under the jurisdiction of the Diocese of Newark, may apply to ECLF for assistance in meeting a capital (as opposed to an operating) need.

The maximum amount of the loan shall be $40,000 or not more than 75% of the cost of the project whichever is less.

A long term loan will not be made to any applicant unless and until ECLF has been assured that the applicant cannot obtain an adequate loan and terms (as judged by ECLF) from commercial sources.

All ECLF interest income goes to the Ward J. Herbert Fund for discretionary granting purposes.

Diocesan requirements for funding

There are basic diocesan requirements for each of the grants and loans. Churches must be in compliance with financial reporting obligations, including current parochial reports and audits; pledge card on file; and certification for Safe Church training.