1. THE BAPTIST FOUNDATION OF OKLAHOMA Strength for Today and Tomorrow THE BAPTIST FOUNDATION OF OKLAHOMA Foundation Loan Services Jerry Vaughan Senior Vice President

2. Strength for Today and Tomorrow Types of Funding Options Traditional Loans Church Bond Programs Upfront Cash, Pay As You Go

3. Strength for Today and Tomorrow Traditional Loans Sources: The Baptist Foundation of Oklahoma Local Banks Other Nationwide Lenders

4. Strength for Today and Tomorrow Traditional Loans Characteristics: Credit Qualification Mortgage Requirement Title Work (Title Insurance, Title Reports) Appraisal of Property, Surveys, EPA Reports Closing Costs

5. Strength for Today and Tomorrow Church Bonds Characteristics: Two Types of Bonds Faith Bonds (unsecured, not very common) Mortgage Bonds (secured by mortgage) Loan funds generated by sale of bonds Bondholders repaid, with interest, by church

6. Strength for Today and Tomorrow Church Bonds In most cases church assumes responsibility for selling the bonds, which can be laborious and involves legal issues Church settles for whatever amount of bonds are sold Bond repayment arrangements may be more restrictive than other forms of financing The actual cost of financing is generally greater than the stated rate

7. Strength for Today and Tomorrow Upfront Cash, Pay As You Go Good concept for small projects For larger projects requires a significant amount of funding prior to beginning construction Can lengthen building process and risk rising construction costs as cash flow varies from month to month Church may not have use of facilities as quickly (scheduling of contractors, purchase of materials, etc.)

8. Strength for Today and Tomorrow Capital Fund Raising Can be used whether a church decides to borrow, issue bonds or build debt-free Great source of upfront cash and cash flow during project construction and repayment Teaches the congregation about planned giving above the tithe Significantly reduces debt over a short period of time

9. Strength for Today and Tomorrow The Baptist Foundation of Oklahoma A Ministry and Business Partnership Between The Baptist Foundation of Oklahoma and Oklahoma Baptist Churches

10. Strength for Today and Tomorrow The Baptist Foundation of Oklahoma Fast and easy loan process Competitive interest rates and terms We know Southern Baptist Churches…our only customer No appraisal requirement and No prepayment penalties All interest paid is distributed to Kingdom causes

11. Strength for Today and Tomorrow ALL INTEREST PAID ON LOANS BENEFITS KINGDOM CAUSES!! OBU OBHC BGCO CHURCHES BFO SBC OTHERS

12. Strength for Today and Tomorrow The Foundation is committed to: Providing a fast, easy and convenient loan process Competitive interest rates and terms Low closing costs Our goal is to help churches borrow wisely and service debt efficiently.

13. Strength for Today and Tomorrow “…through us your generosity will result in thanksgiving to God.” II Corinthians 9:11b