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April 14, 2020

Knights of Columbus boosts loan program to help churches weather COVID-19

PHOTO | File image Knights of Columbus headquarters in New Haven.
By Michelle Tuccitto Sullo

With the coronavirus pandemic severely impacting any large gatherings, many would-be churchgoers have been staying home.

That has meant less money for Catholic parishes, which rely on tithes from parishioners to pay for everything from salaries to utility bills. 

The New Haven-headquartered Knights of Columbus has announced that it is offering assistance through a nationwide program aimed at providing short-term financing to beleaguered parishes. 

The Knights have been a lender to parishes and dioceses for more than a century, including through its ChurchLoan program.

Shari Smith, the Knights’ corporate communications manager for insurance and investments, said the fund has been in existence since 1896, but the organization has boosted the amount of funding available to help during the coronavirus pandemic.

The Knights have now established a $100 million fund, with up to a $1 million secured line of credit per Catholic diocese. Those interested in securing this funding can do so through the end of May. 

Supreme Knight Carl Anderson said in an announcement it is critical for the organization to support the country’s Catholic churches through this time. 

“Our fund is designed specifically to help dioceses and their parishes weather this pandemic financially so that they can continue their important work — now and after the pandemic,” Anderson said. 

Smith said many of the faithful aren’t able to attend weekly mass due to the virus. Without tithes, churches will likely struggle to cover their mortgages, utilities, payments for staff, and maintenance costs, she noted.

“It is to help alleviate a burden for our Catholic churches,” Smith said. “We are stepping into the breach and filling the gap as a non-governmental organization. We are taking the responsibility to do that. It is an established church loan program, but because of the pandemic, we decided to expand it.”

As of early this week, she estimated that the Knights had already received 23 inquiries, a number she expects will rise quickly due to the unprecedented level of need.

Anthony Minopoli, president and chief investment officer of Knights of Columbus Asset Advisors, added that the organization is proud to step in and help churches, "as they face unprecedented financial circumstances as a result of COVID-19."

According to the Knights, the lines of credit will have a competitive interest rate equivalent to that of the one-year Treasury bill, plus 225 basis points (2.25%).

The line of credit has a two-year term. After two years, dioceses may convert the line of credit to a Knights of Columbus church loan, fully amortizing at the prevailing rate for a term selected by the borrower of five, 10 or 20 years. According to the Knights, these will be at low interest terms offered under the existing ChurchLoan program.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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