Knights of Columbus offers short term loans to help dioceses meet needs
NEW HAVEN, Connecticut (CNS) – The Knights of Columbus announced a new program on March 27 to provide short-term funding to US dioceses to help them and their communities “weather the financial impact of the pandemic.”
“Supporting the Catholic Church in the United States is critical right now so that the Church can continue to provide irreplaceable spiritual and charitable assistance and to keep the staff who support its mission and commitment busy,” Carl Anderson, Knights of Columbus CEO said in a statement.
The Knights have set up a $ 100 million fund with a secured line of credit of up to $ 1 million per Catholic diocese. The program will be available for 60 days from March 30th.
“Our fund is specifically designed to help dioceses and their parishes financially weather this pandemic so they can continue their important work – now and after the pandemic,” said Anderson.
According to a Knights press release, the diocesan credit lines will “have a very competitive interest rate, equivalent to the one-year Treasury bill plus 225 basis points (2.25%).”
“The credit line has a term of two years,” says the message. “At the end of this term, the dioceses have the option of converting the credit line into a church loan from the Knights of Columbus, with full repayment at the applicable interest rate for a term of five, 10 or 20 years chosen by the borrower – the same low-interest terms that existing and long-standing ChurchLoan program of the Knights. “
The Knights of Columbus said it has been “a major lender to parishes and dioceses for more than a century, and the ChurchLoan program remains an important source of funding for Catholic parishes and institutions”.
Other responses from the fraternal organization to the needs created by the COVID-19 pandemic include urging its members through their local and state councils to provide food and other essentials to those in their communities and the wider community to participate in blood donation drives.
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Editor’s Note: The Knights of Columbus website is https://www.kofc.org.