On June 3, 2022, The Susquehanna Annual Conference voted to wind up and terminate Seedling Financial Ministry over the next few years.
Here are answers to some of the questions you may have:
Why is seedling proposing a wind-up plan?
As we look forward to seeing the viability of Seedling Financial Ministry, we see uncertainty as to the volume of new construction and additions to existing structures for many churches due to Covid and other issues impacting in-person attendance at Church Services as well as other meetings and activities.
As membership decreases, so does the need for loans. Our mission states that we extend loans to churches. but our last new loan closed in January 2020. If we are unable to make new loans and replace maturing loans in the future, we could experience a significant reduction in our cash flow available to pay principal and interest on our outstanding investment certificates when due.
Additionally, if we continue down this path, we may be subject to increased scrutiny from our securities regulator. Under the current circumstances, we believe that the timing is right to wind up this ministry over the next few years.
Why now?
The Board of Trustees, CF&A, Seedling’s Board of Directors, and Cabinet have reviewed and considered all of the relevant information and deem it advisable and in the best interests of the Conference that now is the time for Seedling to wind up and terminate its operations.
Seedling is currently in a financial position to be able to pay our investors at maturity without having to have church’s payoff their loans immediately. This is a win-win situation in that our investors will receive their funds and our churches can continue making regular payments to their loans.
What happens to my money that I invested with Seedling?
If you have a term certificate, your investment will automatically redeem and be paid out with interest on its maturity date.
If you have a Savings or Demand Certificate, you can choose to withdraw those funds at any time as long as it is done prior to December 31, 2024. Please contact us to redeem your investments prior to the above date. Any Demand or Savings Certificates still open on December 31, 2024, will be automatically redeemed.
Interest will no longer be able to be compounded, so an interest check will be issued for those who currently have their interest compounded.
What happens to my church’s loan?
Your church’s loan will remain the same. The terms will remain the same and the payments will remain the same. In fact, you will see no change at all. Your church will still be required continue to make payments on their loan until it is paid off.
After Seedling’s investors have all been paid out, the Finance Office will take over the administration of the loans (accepting payments, generating statements etc.). The only change is that we will no longer be able to refinance existing loans or extend new loans to churches.
What is the time frame for winding up?
Since the proposal was approved at Annual Conference on June 3, 2022, the plan will go into effect immediately. We expect that the majority of the investments will be paid out by December 31, 2024, with only the longest-term investments remaining. The last investments to mature will redeem in 2027.
What is the benefit to Seedling winding up?
We view this as refocus on mission. After repayment in full of all of Seedling’s outstanding investment certificates, and all current loans have been paid back in full, the entire capital account of Seedling will be available to the Conference in which CF&A will oversee and recommend usage for available monies to support existing and/or new ministry opportunities.
We anticipate the value to be more than $8 million. If that’s the case, Seedling will be able to provide the “seed monies” to fund existing ministries and/or start new mission opportunities.
I will be remaining at Seedling for the next few years to ensure that the Wind-Up plan is facilitated appropriately. As always, if you have any questions or concerns, please contact me at 717-591-4099 or at csims@susumc.org and I will be happy to speak with you. Through the years we have helped hundreds of churches grow their ministry and you can be proud of the ministry you have partnered with.
Sincerely,
Christine Sims, Executive Director
