Financing Options

Listed below are some of the financing options for EIT. Particularly promising is #5a. However, we are waiting to hear from our lawyer as to the legalities involved. Please pray that we will hear from her soon and that this option will prove to be workable.


Minimum Need: $750K Ideal Situation: $1M

1. Collateralized loan
Problem: No access to collateral needed

2. Solicitation of Funds – this is being attempted at every level of known
possibility; an ongoing process
Problem: Has not yet produced funds

3. Mini bonds through St. Louis County Economic Council
Advantage: Issued at a lower interest rate than bank loans
Basic Process:
•SLCEC issues the bonds upon assurance that EIT has a bank to purchase them
•The moment SLCEC issues the bonds, a bank purchases them
•EIT then makes payments to the bank
Problem: Must be collateralized

4. Arrangement with Jefferson College:
$934,000 Purchase the building at its appraised value
$747,200 Finance 80% of the appraised value
$534,000 Then ask Jeffco to discount the price b/c of
needed improvements
$347,200 Use the difference in the financed amount and the
purchase price make improvements

$934,000 x 80% = $747,200
Used for improvements $347,200
Used for bldg purchase $400,000

5. 504 Loan – 90% government backed; need 10% collateral
Problem – this is a for profit loan and we have been assuming not-for-profit
status
Possible Solutions:
A. EIT becomes a for-profit entity and establishes itself as a Private
Christian School operations or consulting board.
• CCA and GLLLC would pay a small enough consulting fee to EIT for it to
show a profit but not enough to have to pay taxes
• CCA and GLLLC would be nonprofit entities
B. CCA becomes a for-profit entity knowing that they can expect a loss.
Any donations for educational purposes would be made through EIT so as
to be tax deductible.
C. GLLLC becomes a for-profit entity that uses all excess monies for:
• Capital improvements
• Contributions to CCA
• EIT Consultation
EIT and CCA remain nonprofit

Pressing On!

God's hand is in CCA! He has used his people, outside circumstances, and mostly, his peace to encourage us to press on and press on, we will.

At this time, we have 23 students from 14 families enrolled. We will need to raise about $10,000 through fund raisers. This is a very reasonable goal. Some areas to begin thinking about: Silent Auction (November)- watch now for bargains, think now of where to get donations; Scrip - if each family purchased at least $100/week plus a little more at Christmas, we could raise close to $3000 for the year. Box Tops - start collecting them now - they do add up.

The board is beginning to seek alternate locations for the school year. If you know of any place that might be reasonable and available, let us know. If you can, find out any details that might help - square footage, price...

Remember, CCA doesn't have a specific "core" group - we are all the "core" group. Your excitement Friday night proved this. Don't let that excitement wane. YOU are in on the foundation of what can be a great work of God in our community!

As you pray...

Pray that God will supply our fund raising needs and that he will show your family avenues through which to help raise these funds.

Pray for our sports program. It is obviously a bare bones group but praise God, we are going to have boy's basketball, girl's volleyball and cheer leading.

Pray for financing. Ask the Lord to give us answers concerning 4500 Jeffco soon. This seems to be the ideal building in the ideal location. Lord, gives us wisdom.

Pray for those who will be meeting with potential financiers and benefactors.

Keep posted!

Moving Forward

Wow! It has been awhile since the last posting. Hopefully we can get back to at least making weekly updates.

The EIT board met tonight and we still believe that the building for us is 4500 Jeffco Blvd. Jesus taught that we should pray and never lose heart (Luke 18). It would be easy to lose heart if we did not serve such an awesome Lord and Savior. Are you still praying?

School will start soon (August 21). Wouldn't it be great to see a child care facility open shortly thereafter?

Obviously, funding is still an issue. The board is searching into newly raised options over the next couple of weeks, including:
1. Talking with four different banks
2. Approaching a thriving ministry for backing
3. Writing letters to potential benefactors.

The fireworks stand made about $1900 this year. Our thanks to Matt Woods for allowing us to use his property. This gives us a foundation for beginnings.

We would love to hear from you and any options that you might know about. Post on the blog or give a board member a call!

Today's Findings

David, Kim, and Amy met with the banker today. He confirmed that we can get a loan but we'll need to find a guarantor. My Father "owns the cattle on a thousand hills (Psalm 50:10)." Money is a non-issue for Him. We must continue to seek His guidance. If there is to be a school, He will open doors. So far, we are all in agreement, God has NOT closed the door. We must be diligent in seeking Him and in pursuing those avenues that are on our hearts and minds. Please pray accordingly.

David and Amy also met with a lawyer today, a very gracious man. We were advised to begin incorporation, obtain an employer identification number, and begin tax exempt proceeding immediately. This process will take place this week. Pray that it will be expedited by the government. That alone is asking for a miracle!

We hope to have a PowerPoint presentation available by the end of next week. Who do you know that might take an interest? Let us know and we'll send them a copy.

Think hard. Pray harder. "Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God (Phil. 4:6). As the summer break moves on and the weeks pass, it is tempting to be anxious about the coming school year. Take the practical steps that you need to take but don't lose heart. God is a powerful God who has chosen to work through the prayers of His people. Let us be anxious for nothing other than the excitement and anticipation of how God is going to work!

Laboring together.

Moving Fast

Everything is moving quickly now. In the next week, we have three crucial meetings: 1)with Jefferson College president and business manager 2)with Fortune Bank president, and 3)with Jefferson County concerning daycare regulations.

David and Amy met with the president and business manager of Jefferson College yesterday. It was a very encouraging meeting. Now more than ever do we need to pray that God will move and that funding will come quickly.

Pray for the board as we assemble a business plan. It has to be ready by Tuesday. It will be made available to all interested persons.

Pray Without Ceasing

Many of you were expecting a report from our trip to Fortune Bank today. However, the feasibility study on the building is not finished. This is a critical piece of data when presenting a business plan. So, instead, David Seitzer, Ann Gustafson, Brenda Bates, Amy Lee and Angie Womack visited Liberty Christian Academy.

A couple of years ago, LCA was in a similar situation as we are now (only with a much greater time crunch). Our visit was primarily to see how another school is running a daycare/school setup and to take a look at their financial situation. The trip was profitable in both areas. Our goal of one entity providing Christian training and education for infants through twelfth grade was confirmed. Our confidence in being able to adequately fund this goal was bolstered. Our commitment to quality Christian care, training, and education was renewed.

One major barrier remains: initial funding. That's where each of you plays a crucial part. Be thinking of churches, businesses, and individuals who might be prospects for helping us with financial foundations. Within the next two weeks, we hope to have a PowerPoint presentation ready to give to anyone interested. Be praying in the same direction.

As you pray, consider the ultimate goal of Christian care, training, and education: supporting parents in raising godly children. The EIT Board is not just aiming towards the business aspect of Christian education but is complete agreement that promoting the spiritual condition of each child is of utmost importance. Also pray as the board meets again next Tuesday. There is much data to assimilate between now and then. We need clear thoughts and Spirit led discernment as we wade through demographics, financials, and general wording for a business plan.

Having a Fire Works Stand this summer is beginning to look promising. Please pray for Steve Womack as he works out the details and rushes to get all the proper permits and insurance and as he finalizes a location. We will let you know as soon as these details are worked out.

Finally, a note of encouragement. David spoke with a family today who is wanting to place their sixth grade child in a Christian school. They are sold on the concept we are trying achieve and took and enrollment form!

Update at close of school

EDUCATION IN TRANSITION 5/22/08 Update

Family and Friends,

We would like to bring you up to date on the process of transitioning People’s Christian Academy to a new location.

A transition board was elected early in May and we have been busy setting into motion different aspects of the process, the following is a listing of the progress to this point:

A prayer walk was conducted at the proposed site of the new school and interviews for a story, which ran in the Arnold Leader, on Monday, May 12^th. Many folks have reported an extremely positive feedback was received and prayers are being lifted on the school’s behalf.

An architect and mechanical contractor have been retained to conduct a feasibility study on the 4500 Jeffco Blvd building. On a preliminary basis, each have stated that the building is in excellent shape and can be retro-fitted for our desired use. The exact cost is pending at this time.

A meeting was held with the President of Jefferson College, their business manager and an EIT board member. It was concluded that both parties are very interested in completing a favorable transaction.

Three EIT board members met with Pastor Brooks today and are extremely excited to have built a bridge of cooperation. We continue to seek the Lord’s guidance for both the Church and the new school as we pray expectantly for the resources of the school to be transferred for the continued use for a quality Christian education in our area.

The most exciting news to report is that Rockport Baptist Church has granted us permission to begin the new school year in their facility. That is such a blessing for all of us; it means we have a location to continue our children’s education for the fall.

A meeting has been set with Fortune Bank to discuss funding for the building and all needs. We have had the President of the bank attend a parent meeting and he was extremely positive and encouraging about our endeavor.

While there is much to be completed, it is our faith in God’s plan for all of us, that we continue to move forward.

Attached you will find an enrollment form for the 2008-09 school year. Please make every effort to complete it and return to the transition team so that we can continue the curriculum processes required to be functioning in the fall. It has not been determined if your child’s records will be transferrable at this point. It may require a separate signed request by the parents to allow People’s to release the data, therefore, at this stage we will begin compiling a new record for enrollment purposes. Additionally, it is our desire and commitment to you, to keep the tuition costs unchanged. We thank you in advance for this data and pledge privacy to the greatest extent.

Be searching your hearts and seeking a method that you can be involved with the effort, no matter to what degree, seek a way to be involved, make an impact on your child’s education. We all have been blessed to have come this far, and we are excited for revelations of the next few months.