Both the denomination and the Christian Reformed Church Loan Fund are at a difficult transition point. After almost 40 years of operation, the Loan Fund experienced a sharp decline in loan requests in 2021 due in part to COVID, and it remained without a director for two years after the sudden retirement of David Veen in May of 2022. Since that time, the Loan Fund’s direction has been uncertain, its committed investor population is aging, and the requests for capital have changed as churches evolve.
The Loan Fund is a legally autonomous Michigan nonprofit started by Synod 1983 to provide loans to Christian Reformed churches in the U.S. for capital projects at a favorable interest rate and to offer its investors attractive rates of return. It is governed by a six-member board appointed by synod.
During the gap between executive directors, the Loan Fund’s board considered potential new directions such as merging with another fund, winding down, or reenvisioning the Loan Fund. Ultimately, the board decided to revisit the Loan Fund’s mission and create a strategic plan to ensure its future success.
After an extensive search they hired me, Layla Kuhl, as the fund’s executive director. I started in April, but have been involved with the Loan Fund since 2018, when I sought a loan for Madison Church in Grand Rapids, Mich. Synod appointed me to the Loan Fund board in 2021. I am a licensed attorney and have been a member of the denomination since 2004, drawn by the genuine sense of love for all people that I experienced at River Terrace Church in East Lansing, Mich., and the thoughtful discernment and discussion that took place regarding matters of spirituality and morality.
I desire to see the Loan Fund grow and continue to provide access to capital for churches and organizations acting out of Christ’s love for all people. I also want to provide values-based investment opportunities to people hoping to make an impact.
The Loan Fund has an opportunity to be a catalyst for churches and parachurch ministries that are acting on their Christian values to benefit their communities. But to do so, the Loan Fund would have to expand and redefine its mission and address these changes in its bylaws and articles of incorporation with the approval of synod. Notably, some of the proposed additional facility uses that could be supported by lending, such as Christian education and early childhood education, are revenue-generating, making lending less risky.
Christians have established some of the most enduring humanitarian institutions, including churches, schools, hospitals, community groups, and aid programs, and I hope the Loan Fund can be a part of this positive Christian influence. I have observed that the financial sector is particularly susceptible to greed, and financial institutions tend to benefit the wealthy. Meanwhile, people who are less affluent have more difficulty accessing capital and competitive interest rates. I hope the Loan Fund can be an institution of change in this regard. I hope to build upon the lending and investing policies already in existence and engage stakeholders in envisioning the future of the Loan Fund.
For more information about the Loan Fund or to request an offering circular for investment certificates, please visit crcna.org/loanfund.
About the Author
Layla Kuhl, CRC Loan Fund
