Resolves of the Executive Council

Resolved, That upon the recommendation of the Economic Justice Implementation Committee (EJIC), made pursuant to its obligation to periodically review its loan criteria and submit any proposed revisions to the Executive Council (WO/ABF - 2; June 1990), the Executive Council approve the following revised criteria for loans from the National Episcopal Fund for Community Investment and Economic Justice (Fund), said criteria to be effective immediately:

1. The EJIC, recognizing that:

   The source of $3,571,763.00 in the Fund was from unrestricted bequests in a fund, functioning as an endowment and previously known as the Reserve Deposit Fund, which the Executive Council in October of 1989 released from restrictions theretofore imposed on it by the Executive Council or its predecessors to permit the present use.

   A primary objective of the EJIC is to build, develop and institutionalize a national church program based on the concepts of economic justice as expressed in Resolution C-030a, 69th General Convention, which program of necessity involves the entire church at all levels, parishes, missions, dioceses and provinces, is authorized to administer the Fund and to make loans from the Fund pursuant to the following criteria:

   1. Loans shall be made to small, medium or large intermediaries, such as dioceses, community development banks, other loan funds or other entities which receive loans from multiple sources, lend to multiple borrowers, and which the risks of defaults of its borrowers are spread among its investors (rather than directly to individual borrowers), for economic justice initiatives which:
      1. Contain a plan for "empowerment" (defined as actions or opportunities which allow, encourage and develop the ability of those who are powerless, oppressed, and/or left out of decision making structures, to make decisions, determine actions and increase control of their own economic destiny).
      2. Relate to "economic justice" (defined as equitable access to available resources resulting in a reduction of inequalities based on income, wealth and power).
      3. Are subject to a high level of participation and control by the constituent community.
      4. Have the potential for leveraging additional benefits and resources, financial and otherwise.
      5. Promote partnerships, where appropriate, among the public, private and religious sectors and the constituent community.
      6. Foster a determined element of co-operation and community.
      7. Have societal impact by benefiting the larger community.
      8. Contain aspects or elements which can be adopted in other contexts.
      9. Promote the involvement of the Church (both within the Episcopal tradition and ecumenically) in ministries with the poor, the powerless and the oppressed.
      10. Provide for acceptance of appropriate technical assistance from the EJIC in the development of plans for self-sufficiency and financial independence.
      11. Ensure, except where inconsistent with its goals, inclusivity of all people, without regard to gender, race or ethnicity.
      12. Have the potential for achieving its goals; as such goals are defined by its constituent community.
      13. Contain a feasible funding plan which includes adequate funds for start-up, administration and development of capital funds.
   2. Each loan shall be evaluated as to the capacity of the borrower to comply with the particular repayment schedule and the eventual repayment of the loan, while recognizing that a goal of the economic justice program is to support and encourage newly formed intermediaries which may not yet have developed a traditional credit history.
   3. All intermediaries, and in particular small or newly formed intermediaries, shall be subject to an in depth evaluation by the EJIC, with the advice of the Internal Review Committee and where appropriate, outside consultants, such evaluation to include where appropriate site visits, credit checks, investigation of financial stability, history and experience, and other such factors.
   4. The rate of interest on loans may vary up to market, depending on the land of loan and the need with the intent of being flexible to meet emergency situations.
   5. The term of loans shall not exceed 10 years.
   6. The proceeds of loans shall be used to leverage similar funding from other sources, if feasible.
   7. All applications for loans shall be subject to the advice and signature of the Bishop of the Diocese where the borrower is located; provided that in the case of a borrower located in a diocese in Province IX, in order to demonstrate a commitment to the appropriate loan needs and program structure of Province IX, the loan shall only be made with the advice and written consents of the Bishop, the Diocesan Social Betterment Committee, and the Provincial Social Betterment Committee.
   8. The amount of any individual loan shall not exceed $500,000.00.
   9. A major percentage of loans in the portfolio shall be in the area of housing, with other areas of loans including, but not being limited to, non-profit community-based entrepreneurial capital and micro-enterprise initiatives.
   10. All loans shall be treated as loans, with no possibility of conversion to grants, and be subject to notices of default, collection procedures, and other such procedures applicable generally to loans.
   11. Loan recipients (intermediaries) will agree to report at least quarterly to the EJIC, the Internal Review committee, the Treasurer's office and other interested parties, as to the status of loans, principal balance, use of proceeds, details of servicing, existence of any problems or repayment difficulties, and any other matters affecting the security of the loans.
2. The EJIC shall continue to periodically review the above criteria and submit to the Executive Council any proposed revisions.