Borrower \ Issuer
Southwest Bible Church
Lender
Southwest Next Step Fund, LLC
The recommended minimum investment amount is $25,000.00
Clicking "Get Started" and communicating your level of interest is not a binding commitment.
$3,100,000
Minimum Loan Goal
$6,400,000
Total Loan Requested
3.50%
Interest Rate
2.87%
Effective Rate
Investment Term
5 years
Funding Progress
12%
Amount Committed to Date
Amount Committed to Date
$747,000.00
Total Investors
Total Investors
19
Investors Accepting Reduced Returns
Investors Accepting Reduced Returns
9
The interest rate listed above is the annual interest rate you will receive on your investment.

* This listing is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities. Any offering or solicitation is restricted to qualified prospective investors who are supporters of Southwest Bible Church, who have reviewed a confidential offering memorandum and who have executed the subsequent subscription documentation. Persons accessing this site are deemed to represent that they will not use the information herein to offer to purchase securities in a manner that would violate restrictions set out in the information or any securities laws of any jurisdiction.

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

Vision

All those who have placed their faith in Jesus Christ belong to the global Church–the body of Christ. God Himself lives and dwells among His children. The local church is made up of Christians who gather together regularly to worship Jesus Christ and build each other up in faith, actively serving one another with the gifts which the Holy Spirit supplies. Because the gospel is the power of God for salvation, the church is eager to see it distributed in a variety of ways locally, as well as by sending out and supporting those whom God is leading to take the Good News of Jesus Christ all around the world. The church is equipped for ministry through the leading of pastors, elders, and deacons whose qualifications are defined in the Scriptures.

Reason for Loan Photo

 

Reason for Loan

The purpose for the loan is to finance the construction of new facilities on Southwest Bible's current church campus.  The project is known as "THE NEXT STEP" and is a 31,000 sq. ft. building expansion that will become the home of SWKIDS Ministries & Programs. This multi-use building will also provide unique adult spaces for ministry expansion. We plan to break ground in the Spring of 2018 with the building opening in the Spring of 2019. Some of the features of this new building include:

 

Reason for Loan Photo
  • A spacious and welcoming family entrance
  • An Elevator that is twice the size of our current elevator
  • 4 family restrooms directly in front of the main doors
  • Welcome desk for new visitors and self-serve kiosks for Kid Check
  • 5300 sq. ft. Auditorium for teaching times/music/plays and games
  • 2300 sq. Ft. Secured playground
  • 6 – Large Classrooms for K-5th Grade Sunday School
  • 2 – small conference rooms for meetings and appointments

 

  • 23 individual toilet rooms
  • Office and Storage space
  • A complete laundry room adjacent to the nursery
  • A residential grade kitchen adjacent to one of the classrooms
  • Integrated complete building security access system
  • The 5300 sq. ft. SWKIDS auditorium transforms into a 500 seat auditorium for adult conferences and classes
  • Adding tables and chairs makes the room perfect for receptions or dinners.
  • A 1900 sq. ft. Outdoor roof deck for receptions/gatherings/dinners.
Reason for Loan Photo

Impact Statement

Want more information on The Next Step? Visit swbible.org

How does The Next Step project equip SWBIBLE for Gospel ministry amongst the church and surrounding community?

Reaching the Next Generation: We have a great privilege and responsibility to reach the next generation with the Gospel of Jesus Christ. The Next Step builds the physical space needed to accommodate expanded ministry to families and provides additional tools to the existing outreach of SWBIBLE. 

Space Designed for Kids: A redesigned kids space will provide the security expected by parents, the facilities to support a growing ministry, and the tools needed to continue to reach out to the community.

Sunday Morning Gatherings: The Next Step provides critical space on Sunday morning for the nursery program, Sunday School classes, and kids church programs. Vacating the current kids space also creates additional meeting space for adult classes. 

New Home for Summer Activities: The new addition to the building provides an expanded venue for kids outreach during the summer. With larger spaces, a greater number of kids will be able to be cared for at programs such as Adventure Camp & the half-day programs. 

A Mid-Size Venue: In addition to providing spaces for kids, the Next Step gives adults access to the 5300 sq. foot auditorium on the third floor. With an attached outdoor roof deck, this is the perfect space for events such as weddings, conferences, receptions, memorial services, and other gatherings that are too small for the main auditorium. 

Re-Modeled Commercial Kitchen: Once the building addition is finished, much of the current kids space will be re-purposed into a commercial kitchen. Designed to fit the needs of an active church, events such as Outdoor Sunday Evenings, Reunion Services, weddings, and conferences will have a new space to prepare food for the church body and surrounding community.

Expanded Administrative Offices: Our church building is busy every day with the various ministries of SWBIBLE. The vacated kids space will also provide needed office space to prepare for these activities on Sunday and throughout the week.

Reason for 
                               Loan Photo

 

 

Organization History

God burdened the heart of a young man named Bill West to begin a Sunday School class in the McKay-Whitford-Progress area, southwest of Portland. The year was 1952 when Bill, a student at Multnomah School of the Bible, Florence, his wife, and Marion & Vietta Rasmussen of Hazeldale started the classes. They prayed that if 10 people came to the first session, God would be telling them to go ahead with the work.

The first meeting was held in February of 1952, and 35 people showed up. The interest and attendance continued, and the first church service was held on Easter Sunday of that same year. Mrs. Martha Olson suggested they have regular worship services.

Regular services began in June of 1952 with Bill West as Pastor. Sunday evening services were added shortly thereafter and were held in the West home. Prayer meetings were held during the week in various homes.

Some time later, the Church incorporated under the laws of the State of Oregon as Progress Bible Church and elected their first Board of Deacons: R.B. Denney, Carl J. Sorensen, and Amos Spriggel. In 1957 the church purchased two acres of property from Vin Olson, and because the School Board could not renew the permit to use the McKay School, they made plans to build.

Pastor West tendered his resignation and on August 31, 1957, terminated his ministry at Progress Bible Church. Lee Bullard, a student of Multnomah School of the Bible, became the second pastor. He served for two years and then was called to the mission field in Venezuela for Sunday School and Church services.

On October 1, 1959, Virgil Vater became Progress’ third pastor. During his pastorate, the auditorium on Scholls Ferry Road was built. Pastor Vater resigned on October 21, 1964, to take the pulpit at the First Baptist Church of Sedro Woolley, Washington.

Richard Schwab was called as pastor in March, 1965, and during his pastorate an addition was erected to the rear of the building. Pastor Schwab resigned in August, 1969, and moved to Minnehaha Community Church in Vancouver, Washington.

On September 1, 1969, Bill Newkirk assumed the pastorate at Progress. In 1972, a Christian School was begun, Progress Christian Academy. The school continues to be a vital part of the Church’s ministry. In January, 1979, Pastor Newkirk resigned to become the Principal of Grace Christian School in Beaverton, Oregon.

On September 1, 1979, Scott Gilchrist assumed the pastorate at Progress Bible Church. At a business meeting held on April 24, 1985, by majority vote the congregation decided to change the name of Progress Bible Church to Southwest Bible Church. This change came about for several reasons: “Progress” was interpreted by some as “progressive” and had a liberal connotation; the community of Progress was becoming more obscure; and we desired a new name, which would include a wider geographic area of ministry.

The Lord blessed Southwest Bible Church with steady growth, necessitating a larger facility. So in 1986 the church purchased nine acres at the southwest corner of Murray Blvd. and Weir Road and sold the building on Scholls Ferry Road to Westgate Baptist Church. While the building on Murray Blvd. was under construction, the congregation met in Highland Park School. The first worship service in the new building was on May 1, 1988. March of 1989 saw Southwest Bible Church continuing to experience good, solid growth, so we moved ahead in faith and purchased the adjoining 17 acres to the west of our building. Yet again the need existed to expand the auditorium, classrooms, nursery, offices, and foyer - so Phase II was built in 1991. An additional 151 parking spaces were added to the parking lot in 1993.

The Lord continued to produce fruit as people in our midst were coming to know Christ as Savior and as the congregation grew. The auditorium, Sunday School classrooms, and nursery became overcrowded. In the Spring of 1995, the Church Council prayerfully made the decision to begin the building permit process with the city of Beaverton for the construction of Phase III. The Lord guided, directed, and blessed the process as we obtained conditional use status for our entire 26 acres. The actual construction began in June of 1996 and ended a little over a year later. On September 28, 1997, we held our first worship service in the new facility.

The Phase III building expansion has afforded us with an auditorium seating capacity of 2,200, added Sunday School classrooms, offices, and more nursery rooms. An additional 190 parking spaces were added to the parking lot in 2000.

The Phase IV building expansion of our East Wing in the summer of 2010 created larger rooms for our youth ministries (Middle School and High School) as well as our College/Young Adult ministry to prosper and grow. These ministries had been overcrowded for some time and had never really had a space of their own devoted to them. The East Wing Expansion provided three large rooms that are not only much more conducive to an inviting and youthful ministry, but are large enough to allow them to grow.

In 2012, the house and 1.67 acre property at 14650 SW Weir Road, across the street from the church, was purchased and remodeled.

From the very start, Southwest Bible Church has seen its mission as 1) winning the lost 2) building up the saints in their faith, and 3) sending workers to the worldwide harvest. The Lord is working for His glory in the midst of this local congregation. We give Him our thanks and praise, and we look forward to His further provision and blessing.

Southwest Bible is blessed with an extraordinary staff dedicated followers of Jesus Christ.  To learn more about the staff at Southwest Bible:  CLICK HERE.

Summary of Historical Timeline

  • 1952 Sunday School Class at McKay School, 35 people
  • 1955 Incorporated as “Progress Bible Church”
  • 1957 Began construction of Scholls Ferry building
  • 1979 Scott Gilchrist becomes pastor
  • 1985 Name changed to Southwest Bible Church
  • 1986 Sold Scholls Ferry bldg; bought current property
  • 1988 Met for the first time in new building (Phase I)
  • 1989 Purchased 17 acres west of church building
  • 1991 Built Phase II
  • 1997 Phase III completed
  • 2010 Phase IV completed
  • 2012 Purchased house and property at 14650 SW Weir Road

Resources

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

Loan/Offering Details

Southwest Next Step Fund, LLC (“SWN FUND”) is an entity established for the sole purpose of raising investment funds through the sale of Notes in which 100% of the proceeds will be used to finance a loan to Southwest Bible Church (“Southwest Bible”) evidenced by a Loan Agreement, Promissory Note and Deed of Trust (“Loan”). The Loan will be used to provide the construction capital necessary to expand the facility. The minimum loan amount is $3,100,000.

NOTE: Southwest Bible currently has an existing loan with KeyBank with a principal balance of approximately $3,300,000 (the "KeyBank Loan").  The KeyBank Loan is secured by a 1st position lien on the property located at 14605 SW Weir Rd., Beaverton, OR 97007 (the “Property”).  As such, unless Southwest Bible is able to raise the entire amount of the $6,400,000 under this offering, the initial funds disbursed at the closing on the loan by SWN Fund to Southwest Bible will be secured by a 2nd position lien on the property located 14605 SW Weir Rd., Beaverton, OR 97007.

It is also important to read the details around the use of proceeds and real estate collateral which are below. Each potential investor is encouraged to review all information provided within this listing including the supplemental documentation. This includes reviewing the past, current, and forward-looking financial information provided. As with any mortgage backed investment such as this one, your ability to get repaid as monthly obligations become due and payable will depend on the financial ability of Southwest Bible to meet its obligations.  There no insurance and ultimately, and in a worst case scenario, the collateral will be foreclosed on and the net proceeds disbursed to the 1st position mortgage holder, if applicable, and then to SWN Fund for disbursement to participating investors.

The Notes to be issued by SWN FUND to members of Southwest Bible will have a maximum interest rate return of 3.5% and a term of 5 years.  Each investor will have the ability to further reduce the rate for their specific Note which results in greater positive impact for Southwest Bible. While the repayment strategy provided below indicates that Southwest Bible will be making principal repayments on the Loan, there are no obligations within the Loan requiring any prepayment of principal.

FURTHER: Depending on the nature of the improvements as a result of the Loan, the value of the Property may not be increased in direct proportion to the funds expended and there are no assurances that the cost of renovations does not exceeds expectations.

  

Use of Proceeds / Collateral Details

 

Borrower has set a total loan need of $6,300,000 from SWN Fund. Southwest Bible will use $3,100,000, the initial loan break, to complete construction of the building on the Property (Note:  The balance of the funds required to pay for the construction project, estimated at approximately $7,000,000, will come from gifts and donations received from Southwest Bible’s recent capital campaign). The funds over $3,100,000 will be used to refinance the existing KeyBank loan and as additional working capital. Upon refinancing of the KeyBank Loan, the SWN Fund will be in a priority 1st position lien against the property. The loan amount may be reduced in the event that designated gifts are realized towards the construction. To review the budget for the construction project and to view the project drawdown of loan funds, please see the following use of proceeds worksheet which shows the expected construction draws:  PRO FORMA CONSTUCTION BUDGET – CLICK HERE.

The Loan will have a Deed of Trust recorded in 2nd position on the Property unless sufficient funds are raised in order to pay off the total amount of the existing mortgage.  If the existing mortgage is paid off in full, the loan by SWN Fund will be in a 1st position on the Property. To establish a valuation of the Property the best indication of current value is the 2016 Appraisal (See Below for details and a link to a summary of the appraisal) is $10,910,000.

No formal "As-Completed" appraisal has been completed to establish a value of the Property upon completion. Until an appraisal is provided to communicate otherwise, it should be assumed that the $3,100,000 from the LLC to complete construction of the improvements to the Property will be secured by a Property whose value may be $10,910,000. NOTE: While it should be assumed that the improvements made on the Property would increase the value, potential investors should make a decision based on the fact that, if the Property had to be sold to satisfy obligations, especially if there is a senior lien holder, the property would not likely sell for the appraised value plus the total amount of these improvements.

Based on maximum loan amount of up to $6,400,000 results in a loan-to-value ratio of over approximately 69% of the current value of the property. In the event Southwest Bible is not able to service the loan payments, the Property as collateral would potentially need to be sold to satisfy the Loan obligation. In such an event, and depending on market conditions at the time of sale, it should be assumed that the sale of the Property may not provide enough proceeds to cover the total amount of the Loan.

FURTHER NOTE: The Loan to the Borrower is to address construction costs and future working capital. While the construction budget allocates contingency reserves, due to the potential of cost overruns related to any construction project, there are always risks in a major construction project such as this one and if for some unforeseen reason, Southwest Bible was not able to complete the construction of the new building, it might result in a significant negative impact on Property's value and the financial health of the Southwest Bible.

 

Property Collateral

Property Address: 14605 SW Weir Rd., Beaverton, OR 97007

Property Status: Owned – Ready for Construction/Expansion

Property Value: See Attached Appraisal ("As Is" Appraisal completed in 2016) – CLICK HERE

“THE RETURN OF FUNDS OF THE PURCHASER IS DEPENDENT UPON THE FINANCIAL CONDITION OF THE ORGANIZATION.”

“ANY PROSPECTIVE PURCHASER IS ENTITLED TO REVIEW FINANCIAL STATEMENTS OF THE ISSUER WHICH SHALL BE FURNISHED UPON REQUEST.”

 

Additional Resources

 

Offering Disclosures

When an investor purchases a Note in this offering, the investor will be relying on the Borrower to make the installments payments due on the Loan and payment of principal on the maturity date of the Loan. Please refer to the Offering Memorandum by clicking on the blue button above for further information on the Note investment opportunity.

NOTE: With any church, because of the importance of its core leadership, there is a risk that something could happen with core leadership that would negatively impact the financial health of the organization. 

 

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

Repayment Strategy

Southwest Bible has sufficient operating revenues to service the KeyBank loan as well as SWN Fund loan.  And, if Southwest is able to refinance the KeyBank loan with a loan from SWN Fund, Southwest Bible will have more funds available to apply toward reducing the principal balance of the SWN Fund loan wihtout impact the operating budget of Southwest Bible.  Furthermore, the expansion of Southwest Bible's facilities is projected to result in an increase in attendance and annual giving.  Since there are no prepayment penalties on the SWN Fund loan, Southwest Bible leadership intends to make principal reduction payments when the budget allows. 

Although the leadership of Southwest Bible desire to payoff all of its loans as quickly as possible, it is likely there will be a balance at the end of the intial five year term of the SWN Fund loan.  The plan for refinancing the loan will include  (i) allowing investors in the SWN Fund to elect, in each investors sole discretion, to participate in refinancing of the SWN Fund loan for another term, (ii) securing of a conventional laon from a bank, or (iii) a combination of the two preceeding options.

Risk Questionnaire

Are there any outstanding or pending litigations against the Borrower? 

No

Are there any material changes in revenue sources that should be disclosed or are not represented in the financial information provided?  

No

Are there any material changes in operating expenses that should be disclosed or are not represented in the financial information provided?

No

Are there any material changes in the Borrower’s leadership (compensated or non-compensated) that should be disclosed? 

No

Are there any employment issues or claims outstanding or pending? 

No

Are there any environmental issues on any of the real estate related to the Borrower loan?

No

Has the Borrower been in default in any obligations in the past 3 years? 

No

Has any of the key leadership of the Borrower (compensated or non-compensated) been involved in any pending or current litigations or judgments that could adversely impact their ability to serve the Borrower? 

No

Has any of the key leadership of the Borrower (compensated or non-compensated) ever been indicted or convicted of a felony? 

No

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

Frequently Asked Questions

QUESTION: What is the next step?

ANSWER: At the point that you are ready to participate, select "Get Started" and follow the simple steps. It takes about 2 minutes to enter the basic information, including your email address, amount you want to invest, and the rate of return you would like to receive. Choosing to take this first step is not a binding commitment.

QUESTION: What if I want to get my money out before the end of the investment term?

ANSWER: If you plan to access the funds prior to the maturity of the investment, it is encouraged that you not invest since there are currently no well-defined secondary markets for the investment. In the case of hardship, best efforts will be made to see if someone else would like to take your position, although there are no guarantees.

QUESTION: Can I make an investment using retirement funds?

ANSWER: Yes, but you are not typically able to direct funds from your current employer 401(k) or 403(b). If the instructions online are not clear or if you have questions, please contact Semble.

QUESTION: Are there costs in using a retirement account (i.e. IRA) to invest?

ANSWER: Yes, all custodians will charge a fee for holding this type of investment because they are not compensated through the normal fees they realize in holding traditional investments (stocks, bonds, mutual funds, etc.). The fee varies based on the custodian. The IRA custodian that is the preferred provider through Semble has a $25 setup fee and a flat annual cost of $65/yr. This cost should be taken into consideration when making an investment. There are no costs to invest using non tax-deferred funds since there is no need for custodial involvemen

Resources

Ready to commit to invest in the loan needs of Southwest Bible Church?

Click the blue Get Started button to enter your commitment. This is a non-binding commitment and Semble investor support is always available if you have any questions or need assistance.