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Self-Funding Rate Discount


“Self-funding” is the Orchard Alliance term for allowing depositors to use their investments to lower the interest rate on a designated church loan. This program provides a way for individuals to put their personal investments to work for a church they wish to support.










  • The following Orchard Alliance investment products may be used for self-funding purposes:

    • Investment certificates (with a term of at least one year)

      • For loans with an initial, fixed interest rate, only certificates with a term equal to or greater than the fixed rate period may be used during the fixed rate period.

    • IRAs, Missionary Retirement Accounts, and Educational Savings Accounts.

    • Shell Point accounts

  • Both new and existing investment accounts may be used to self-fund loans.

  • Self-funded interest rates are determined by:

    • Calculating the effective interest rate of all designated investments.

    • Adding two hundred basis points to this calculated rate.

    • Pro-rating the resulting interest rate with Orchard Alliance’s current loan rate, weighting the total principal balance of the investments versus the principal balance of the loan. If the self-funding investments have a combined principal balance equal to or greater than the loan balance, the self-funded rate does not need to be weighted against the loan principal balance.

    • Deposits may be voluntarily invested at a rate lower than the published rate, in order to increase the self-funding impact. For any deposit voluntarily invested at zero percent, Orchard Alliance will add only 100 basis points to its self-funding calculation as opposed to 200 basis points.

  • Self-funding for loans will be reviewed on a monthly basis, and a self-funded rate will be recalculated if any self-funding investments were added or removed.

  • A self-funded loan interest rate will not be applied to a loan if it is higher than Orchard Alliance’s current loan rate, unless the loan carried with it a requirement that the church self-fund a specific portion of the loan.

  • Districts may self-fund multiple church loans:

    • The district may elect to apply the self-funding to various loans in any manner it chooses, as long as it is clearly spelled out in writing for Orchard Alliance.

    • Districts may only adjust the manner in which the self-funding is allocated once a year, unless new money is invested.


For more information on self-funding or to get started, please contact

Troy McLaughlin (719) 268-2267

David Graf (719) 268-2220

Loans are underwritten and funded by The Alliance Development Fund, Inc. (ADF), which conducts its operations, together with the operations of The Orchard Foundation, under the brand name Orchard Alliance; however, only ADF is responsible and liable for the lending operations of Orchard Alliance.



Send us your Self-Funding Rate Discount questions