St. John’s Lutheran Church in Annandale, MN

St. John’s Lutheran Church (St. John’s) is a congregation of the Evangelical Lutheran Church in America.  Since 1887, the people of St. John’s have endeavored to live the example of the early church by modeling the abundant hospitality of Jesus. By extending God’s love throughout the congregation and into the Annandale area, the church serves people of all ages and stages of life.  From weekly worship to funerals and weddings, from fellowship events to vacation bible school and faith formation, St. John’s creates a space where people can have authentic encounters with Christ, discover their gifts, and use those gifts to serve others for God’s glory.

St. John’s is growing and has a pressing need to renovate and expand its building.   It has launched the “Making Room” capital campaign in order to make room for the present and future congregation by providing additional classrooms and multi-purpose spaces for youth and church groups, improving accessibility, as well as updating amenities to enhance hospitality and expand fellowship. 

Venn is extending two PRI loans to provide generous, below-market financing in support of the campaign.  Each PRI will meet a different financing need.  The first PRI is designed to be a short-term bridge loan for $700,000 in formal, multi-year capital campaign pledge commitments. The second PRI is designed to provide longer-term financing to the church to cover the difference between the immediate price of the project and the amount officially gifted and pledged to date.

Historic Building

Current Building

Future Building

“Making Room” Campaign Vision

  • Over 7,000sf of new classroom space in an education wing

  • New entrance/vestibule

  • New exterior drive-through canopy

  • New extended gathering area

  • Renovating nearly 3,000sf to add meeting rooms, storage, office space and increased accessibility.

PRI #1 (Closed)
Amount Raised: $700,000
Overview of Terms:

  • 5-Year Unsecured, Subordinate Loan

  • Accrues Simple Interest at 4% Annually

  • Payment Terms

    • Year 1: Annual, interest-only payment

    • Years 2-5: Annual, interest plus 25% of original principal

    • No prepayment penalty

    • Prepayments applied first to accrued and unpaid interest, second toward next required principal payment.


PRI #2 (Open)
Investment Sought: $500,000 - 2,500,00
Overview of Terms:

  • 20-Year Unsecured, Subordinate Loan

  • Accrues Simple Interest at 4% Annually

  • $350,000 principal eligible for conditional forgiveness at maturity based on finished canopy and timely repayment

  • Payment Terms

    • Years 1-4: Annual, partial interest-only payment

    • Year 5: Annual, full interest-only payment

    • Years 6-19: Annual, newly accrued interest plus 5% of incentive-adjusted principal amount

    • Year 20: All accrued and unpaid interest, plus all remaining incentive-adjustment principal amount

    • No prepayment penalty

    • Prepayments applied first to accrued, unpaid, and current interest, second toward next required principal payment.