What Underwriters Look for When Reviewing a Faith-Based Loan Request

At a recent conference hosted by the Dallas Chapter of The Church Network (TCN), industry leaders from Frost Bank provided helpful insight related to underwriting metrics for religious organizations, including what their underwriters look for when reviewing a possible loan.

As your faith-based organization plans for 2022 funding requests, we wanted to show you these criteria that are important to Frost Bank (and presumably other lenders). They are:

  • Pastor tenure (3+ years)
  • Church age (5+ years)
  • Leverage (total debt should be no more than three times that of annual contributions/giving)
  • Giving concentrations
  • Liquidity (90 days cash on hand)
  • Affiliation/Governance
  • Membership growth (looking for negative trends)

The experts at SST are experienced in the unique nuances that affect faith-based organizations, and our team is here to help you navigate your organization’s financial roadmap. Learn more about our service areas, or contact us today for immediate assistance.