June 15, 2021

Cor Unum Private Lending

Proposal

  • The private lender lends a loan to Cor Unum at a fair market interest rate.

  • Every month, this interest from the loan would be donated back to Cor Unum.

  • The loan terms would be 20 years.

  • While a single lender could lend the entire amount, there could be multiple lenders, with each lending a smaller amount.

The benefit to the Private Lender

  • Support the Frassati House.

  • Receive yearly tax deductions for up to 20 years.

  • Receive the entire loan amount back.

  • Low-risk loan.

Risk Management

  • The loan will be a legal document.

  • The house appraises for significantly higher than the loan amount.

  • This loan will only be issued if the conditional use permit is granted and if there is a community commitment to sustain the operating budget of the Frassati House.

  • Even if the Frassati House is not sustained over the next 20 years, given the appraisal value of the house, this asset can easily be sold to cover the outstanding loan amounts.

 The benefit to Cor Unum

  • Given the cost of purchasing the property and prepping the ground and raising money to help with the down payment on the loan, we anticipate around an $800,000 loan.

  • If Cor Unum has to get a loan for $800,000 at, say, a 5% interest rate, this would be a monthly payment of $5,279.65 a month with $1,946.31 of that being interest. Annually Cor Unum would pay $23,355.72 in interest, and over 20 years $467,114.40 in interest.

  • With private lenders donating the interest back to Cor Unum, we will save over $23k a year and over $467k in 20 years. This would be a huge help to our operating budget and create instant financial viability.

Breakdown of Numbers for a 20-year loan at a 5% interest rate

# of Lenders

Loan Amount per lender

Annual Tax Deduction

1

$800,000

$23,355.72

2

$400,000

$11,677.86

3

$266,666

$7,785.24

4

$200,000

$5,838.93

5

$160,000

$4671.14

  • Regardless of the number of lenders for Cor Unum, the amount paid each month will remain the same.

  • Take the feasibility survey and let us know if you are interested in the possibility of becoming a private lender to Cor Unum.