What is the Loan Deposit Program’s primary income source? How does it work?

LDP assets in excess of the loans it makes are primarily invested in commercial financial markets.  Interest earnings from loans to parishes, schools and Catholic entities was $1.6 million in the fiscal year ending June 30, 2018. Interest and dividend income from the investment portfolio was $2.8 million in the fiscal year ending June 30, 2018.

Effective October 1, 2018, Archbishop Vigneron accepted the recommendation from the Loan Deposit Program Committee and Archdiocesan Finance Council to increase the deposit savings annual interest rate .125 percent from .50 percent to a new rate of .625 percent. The last change to the interest rate was in 2012. The increase signals that the archdiocese and its parishes, schools and ministries have reduced the LDP deficit over the last decade, which is contributing to the overall health of parishes in the archdiocese. 

In the fiscal year ending June 30, 2018, $1.8 million was paid in interest on LDP savings deposits. The interest rate charged on new LDP loans is currently 5.5 percent per annum.