Minister Housing Down Payment Loan
by James L.
(Anderson County, TN)
Our church bylaws provides an incentive of making available a $20,000 loan to help our new pastor purchase a home. The loan must be paid back with interest, although payments are not required while the pastor is employed by the church. The loan must be paid back no later than 6 months after he is called to another church or retires.
How do we handle the interest earned?
We debit cash, but what do we credit? (interest earned) or (investment income)? Do we identify this in the same way we handle the interest on our endowment investment?
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