American Church Mortgage (ACMC) 10-Q 13 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 13, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	000-25919
Entity Registrant Name	American Church Mortgage Co
Entity Central Index Key	0000934543
Entity Incorporation, State or Country Code	MN
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,676,598

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 269,401	$ 191,987
Accounts receivable	109,612	125,539
Interest receivable	179,747	185,190
Investments		2,410
Prepaid expenses	8,718	13,121
Mortgage Loans Receivable, net of allowance of $1,477,644 and $1,429,487 at September 30, 2020 and December 31, 2019, repsectively and deferred origination fees of $217,091 and $278,633 at September 30, 2020 and December 31, 2019, respectively	16,767,386	20,717,058
Bond Portfolio	18,284,135	16,055,937
Real Estate Held for Sale	550,045	651,398
Total Assets	36,169,044	37,942,640
LIABILITIES
Accounts payable	137	12,311
Management fee payable	23,122	27,255
Line of credit	2,491,000	1,445,000
Dividends payable	33,532	125,835
Secured Investor Certificates, Series B	6,136,250	8,855,000
Secured Investor Certificates, Series C	6,245,000	6,324,000
Secured Investor Certificates, Series D	8,039,000	8,109,000
Secured Investor Certificates, Series E	3,738,000	3,562,000
(Less) Deferred Offering Costs, net of accumulated amortization of $1,042,143 and $956,811 at September 30, 2020 and December 31, 2019, respectively	793,103	865,533
Total liabilities	25,912,938	27,594,868
Stockholders' Equity
Common Stock, par value $.01 per share authorized, 30,000,000 shares, issued and outstanding, 1,676,598 shares at September 30, 2020 and 1,677,798 shares at December 31, 2019, respectively	16,766	16,778
Additional paid-in capital	19,111,060	19,113,458
Accumulated deficit	(8,871,720)	(8,782,464)
Total stockholders equity	10,256,106	10,347,772
Total liabilities and stockholders equity	$ 36,169,044	$ 37,942,640

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Allowance for mortgage loans recievable	$ 1,477,795	$ 1,429,487
Deferred origination fees for mortgage loans recievable	217,091	278,633
LIABILITIES AND STOCKHOLDERS' EQUITY
Accumulated amortization deferred offering costs	$ (1,042,143)	$ (956,811)
Stockholders' Equity
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, Authorized	30,000,000	30,000,000
Common Stock, Issued	1,676,598	1,677,798
Common Stock, Outstanding	1,676,598	1,677,798

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Interest and Other Income	$ 711,621	$ 712,657	$ 1,943,845	$ 2,058,680
Interest Expense	440,013	476,734	1,342,338	1,397,537
Net Interest Income	271,608	235,923	601,507	661,143
Provision for losses on mortgage loans receivable	450	24,364	48,157	73,105
Net Interest Income after Provision for Mortgage Losses	271,158	211,559	553,350	588,038
Operating Expenses
Other than temporary impairment on bond portfolio	77,802	50,000	112,802	150,000
Other operating expenses	103,060	132,672	412,394	443,431
Operating expenses	180,862	182,672	525,196	593,431
Net Income (Loss)	$ 90,296	$ 28,887	$ 28,154	$ (5,393)
Basic and Diluted (Loss) Income Per Share	$ 0.05	$ 0.02	$ 0.02	$ 0
Dividends Declared Per Share	$ (33,532)	$ (167,779)	$ (0.07)	$ (.22)
Weighted Average Common Shares Outstanding - Basic and Diluted	1,676,598	1,677,798	1,676,997	1,677,798

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities
Net (loss)	$ 28,154	$ (5,393)
Adjustments to reconcile net (loss) income to net cash from operating activites:
Net loss on sales and impairment on real estate held for sale	101,353	12,734
Provision for losses on mortgage loans receivable	48,157	73,105
Other than temporary investements on bond portfolio	112,802	150,000
Net (accreation) amortization of loan origination fees	(61,542)	68,000
Amortization of deferred offering costs	85,332	82,600
Accounts receivable	15,927	(12,175)
Interest receivable	5,443	(11,365)
Prepaid expenses	4,403	(16,033)
Accounts payable	(12,174)	(556,317)
Management Fee payable	(4,133)	807
Net cash provided by (used for) operating activities	323,722	(214,037)
Cash Flows from Investing Activities
Net increase in loans	3,963,057	(664,997)
Investment in bonds	(2,472,000)	(895,000)
Proceeds from bonds	131,000	110,870
Proceeds from real estate held for sale		(100,537)
Net cash provided by (used for) investing activities	1,622,057	(1,549,664)
Cash Flows from Financing Activities
Net increase in secured investor certificates	(2,691,750)	(2,102,000)
Payments for deferred costs	(12,902)	(61,587)
Net change in short term borrowings	1,046,000	2,200,000
Dividends paid	(209,713)	(335,560)
Net cash (used for) financing activities	(1,868,365)	(299,147)
Net Increase (Decrease) in Cash and Cash Equivalents	77,414	(2,062,848)
Cash and Cash Equivalents - Beginning Period	191,987	2,183,441
Cash and Equivalents - Ending Period	$ 269,401	$ 120,593

Statements of Cash Flows (Paren

Statements of Cash Flows (Parenthetical) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement of Cash Flows [Abstract]
Interest paid	$ 1,342,338	$ 1,397,537

Shareholders Equity (Unaudited)

Shareholders Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit	Total
Beginning balance, shares at Dec. 30, 2018	1,677,798
Beginning balance, value at Dec. 30, 2018	$ 16,778	$ 19,113,458	$ (8,353,688)	$ 10,766,548
Net Income			$ (3,594)	$ (3,594)
Dividends declared			$ (92,279)	$ (92,279)
Ending balance, shares at Mar. 31, 2019	1,677,798
Ending balance, value at Mar. 31, 2019	$ 16,778	19,113,458	$ (8,449,561)	$ 10,680,675
Net Income			$ (30,486)	$ (30,486)
Dividends declared			$ (100,668)	$ (100,668)
Ending balance, shares at Jun. 30, 2019	1,677,798
Ending balance, value at Jun. 30, 2019	$ 16,778	19,113,458	$ (8,580,715)	$ 10,549,521
Net Income			$ 28,687	$ 28,887
Dividends declared			$ 167,779	$ (167,779)
Ending balance, shares at Sep. 30, 2019	1,677,798
Ending balance, value at Sep. 30, 2019	$ 16,778	19,113,458	$ (8,719,807)	$ 10,410,429
Net Income			$ 63,179	$ 63,179
Dividends declared			$ (125,836)	$ (125,836)
Ending balance, shares at Dec. 31, 2019	1,677,798
Ending balance, value at Dec. 31, 2019	$ 16,778	19,113,458	$ (8,782,464)	$ 10,347,772
Net Income			$ 68,402	$ 68,402
Dividends declared			$ (67,112)	$ (67,112)
Ending balance, shares at Mar. 31, 2020	1,677,798
Ending balance, value at Mar. 31, 2020	$ 16,778	19,113,458	$ (8,781,174)	$ 10,349,062
Beginning balance, shares at Dec. 31, 2019	1,677,798
Beginning balance, value at Dec. 31, 2019	$ 16,778	19,113,458	(8,782,464)	$ 10,347,772
Re-purchase 1,200 shares				1,200
Re-purchase, value				$ 2,410
Net Income				$ 28,154
Dividends declared				$ (0.07)
Ending balance, shares at Sep. 30, 2020	1,676,598
Ending balance, value at Sep. 30, 2020	$ 16,766	19,111,060	(8,781,720)	$ 10,256,106
Beginning balance, shares at Mar. 31, 2020	1,677,798
Beginning balance, value at Mar. 31, 2020	$ 16,778	19,113,458	(8,781,174)	10,349,062
Re-purchase 1,200 shares	(1,200)
Re-purchase, value	$ (12)	(2,398)
Net Income			$ (130,544)	$ (130,544)
Dividends declared			$ (16,766)	$ (16,766)
Ending balance, shares at Jun. 30, 2020	1,676,598
Ending balance, value at Jun. 30, 2020	$ 16,766	19,111,060	$ (8,928,484)	$ 10,199,342
Net Income			$ 90,296	$ 90,296
Dividends declared			$ 33,532	$ (33,532)
Ending balance, shares at Sep. 30, 2020	1,676,598
Ending balance, value at Sep. 30, 2020	$ 16,766	$ 19,111,060	$ (8,781,720)	$ 10,256,106

Shareholders Equity (Parentheti

Shareholders Equity (Parenthetical)	9 Months Ended
	Sep. 30, 2020USD ($)shares
Statement of Stockholders' Equity [Abstract]
Re-Purchase 1,200 shares | shares	1,200
Re-Purchase Value | $	$ (2,410)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Basis of Presentation	1. BASIS OF PRESENTATION The accompanying unaudited interim financial statements and the notes thereto have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, the accompanying unaudited interim financial statements contain all normal recurring adjustments necessary to present fairly the financial positions result of operations, changes in equity and cash flows for the periods presented. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on May 8, 2020.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business American Church Mortgage Company, a Minnesota corporation, was incorporated on May 27, 1994. The Company is engaged primarily in the business of making mortgage loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual organizations. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and the valuation of real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements. Concentration of Credit Risk The Company's loans have been granted to churches and other non-profit religious organizations. The ability of the Company’s debtors to honor their contracts is dependent on member contributions and the involvement in the church or organization of its senior pastor. Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. Management believes these financial institutions have strong credit ratings and that the credit related to these deposits is minimal. The Company has not experienced any losses in such accounts. Bond Portfolio The Company accounts for the bond portfolio under the Accounting Standards Codification (ASC) 320, Investments-Debt and Equity Securities. The Company classifies the bond portfolio as “available-for sale” and measures the portfolio at fair value. While the bonds are generally held until contractual maturity, the Company classifies them as available for sale as the bonds may be used to repay secured investor certificates or provide additional liquidity or working capital in the short term. Allowance for Loan Losses on Mortgage Loans Receivable The Company records mortgage loans receivable at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance for loan losses on mortgage loans receivable and less deferred loan origination fees. The Company’s loan policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio with application of reserve percentages to specific loans based on payment status. This policy reserves for principal amounts outstanding on a specific loan if cumulative interruptions occur in the normal payment schedule of the loan, therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of the loan in the Company’s portfolio if the amount is in doubt of collection. Additionally, no interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. At September 30, 2020, the Company reserved $1,477,644 for fourteen mortgage loans. Nine of these loans are three or more mortgage payments in arrears of which two are declared to be in default. The total principal amount of these fourteen loans totaled approximately $6,504 A summary of transactions in the allowance for mortgage loans for the period ended September 30, 2020 and 2019 is as follows: Balance at December 31, 2019 $ 1,429,487 Provisions for loan losses 48,157 Loan charge-offs - Balance at September 30, 2020 $ 1,477,644 Balance at December 31, 2018 $ 1,672,003 Provisions for loan losses 73,105 Loan charge-offs (100,537) Balance at September 30, 2019 $ 1,644,571 The total impaired loans, which are loans that are in the foreclosure process or are declared to be in default, were approximately $589,000 and $810,000 at September 30, 2020 and December 31, 2019, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance for mortgage loans. Approximately $551,000 of the Company’s allowance for mortgage loans was allocated to these loans for the period ended September 30, 2020. Approximately $555,000 of the Company’s allowance for mortgage loans was allocated to impaired loans for the year ended December 31, 2019. The Company will declare a loan to be in default and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone. The Company will accept payments on loans that are currently on non-accrual status when a borrower has communicated to us that they intend to meet their mortgage obligations. The accrual of interest on a loan is discontinued when the loan becomes 90 consecutive days delinquent or whenever management believes the borrower will be unable to make payments as they become due. The interest on these loans is subsequently accounted for on the cash basis or using the cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current or restructured and future payments are reasonably assured. No interest income was recognized on non-accrual loans for the periods ended September 30, 2020 and 2019, respectively. When a loan is declared in default according to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct the staff to charge-off the uncollectable receivables. Loans totaling approximately $2,802,000 and $3,263,000 exceeded 90 days past due but continued to accrue interest for the period ended September 30, 2020 and December 31, 2019, respectively. The Company believes that continued interest accruals are appropriate because the loans are well secured, not deemed to be in technical default and the Company is actively pursuing collection of past due payments. Real Estate Held for Sale The Company records real estate held for sale at the estimated fair value, which is net of the expected expenses related to the sale of the real estate. The fair value of our real estate held for sale, which represents the carrying value, totaled $550,045 and $651,398 for the periods ended September 30, 2020 and December 31, 2019, respectively. Carrying Value of Long-Lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of the estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values, and third party independent appraisals. Revenue Recognition Interest income on mortgage loans receivable and the bond portfolio is recognized as earned per the terms of the specific asset. Other income included with interest represents cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan. Gain (Losses) on Real Estate Held For Sale The Company records a gain or loss from real estate held for sale when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances real estate held for sale to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, real estate held for sale is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction prices and related gain (loss) on sale if a significant financing component is present. Deferred Financing Costs The Company defers the costs related to obtaining financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective interest method. Income (Loss) Per Common Share There were no dilutive shares for the periods ended September 30, 2020 and December 31, 2019, respectively. Recent Accounting Pronouncements In 2016 the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. For public entities, deemed smaller reporting companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not yet fully evaluated the potential effects of adopting ASU 2016-13 on the Company’s results of operations, financial position or cash flows. Income Taxes The Company elected to be taxed as a Real Estate Investment Trust (REIT). Accordingly, the Company is not subject to Federal income tax to the extent of distributions to its shareholders if the Company meets all the requirements under the REIT provisions of the Internal Revenue Code. The Company evaluated its recognition of income tax benefits using a two-step approach to recognizing and measuring tax benefits when realization of the benefits is uncertain. The first step is to determine whether the benefit meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. Primarily due to the Company’s tax status as a REIT, the Company does not have any significant tax uncertainties that would require recognition or disclosure. Subsequent Events The Company has evaluated events and transactions through November 13, 2020, the date the financial statements were available to be issued. The outbreak of the coronavirus (COVID-19) pandemic has affected churches due to shelter-in-place directives which has ceased or greatly curtailed social gatherings such as church worship services. The Company’s borrowers have experienced financial duress during the Covid-19 shelter in place restrictions, amplified by the financial setbacks for many of the church members who have lost their jobs, been furloughed, or had their incomes diminished. The Company has provided some temporary relief by allowing its borrower’s to either make interest only payments for a period of ninety days or forgo one monthly mortgage payment (forbearance). We provided nine churches totaling approximately $3,244,000, in principal outstanding, ninety days interest only payments and five churches totaling approximately $2,632,000, in principal outstanding, one-month forbearance of its mortgage payments. As of September 30, 2020, all churches, except two, have returned to full monthly amortization payments. Two churches totaling approximately $544,000, in principal outstanding, have remained on interest only payments. This relief will impact the Company’s revenue and the Company will experience declines in payments due from borrowers and missed bond payments on the bonds owned by the Company which will impact operating income and may potentially impact future distributions and the ability to make payments due on the Company’s certificates and dividends to its shareholders. The Company’s current certificate offering terminated November 6, 2020. As a result, secured investor certificates are not being re-issued and instead the Company is financing loan requests and liquidity needs through loan and bond payments received and its line of credit.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. FAIR VALUE MEASUREMENT The Company measures certain financial instruments at fair value in our balance sheets. The fair value of these instruments is based on valuations that include inputs that can be classified within one of the three levels of a hierarchy. Level 1 inputs include quoted market prices in an active market for identical assets or liabilities. Level 2 inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data. Except for the bond portfolio, which is required by authoritative accounting guidance to be recorded at fair value in our balance sheets, the Company elected not to record any other financial assets or liabilities at fair value on a recurring basis. We recorded an aggregate other than temporary impairment for losses on our bond portfolio (Note 4), which totaled $770,802 and $658,000 for the periods ended September 30, 2020 and December 31, 2019, respectively. The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring basis: Fair Value Measurement September 30, 2020 Fair Value Level 3 Bond portfolio $ 18,284,135 $ 18,284,135 Fair Value Measurement December 31, 2019 Fair Value Level 3 Bond portfolio $ 16,055,937 $ 16,055,937 We determine the fair value of the bond portfolio shown in the table above by comparing the bonds with similar instruments in inactive markets. The analysis reflects the contractual terms of the bonds, which are callable at par by the issuer at any time, and the anticipated cash flows of the bonds and uses observable and unobservable market-based inputs. Unobservable inputs include our internal credit rating and selection of similar bonds for valuation. The change in Level 3 assets measured at fair value on a recurring basis is summarized as follows: Bond Portfolio Balance at December 31, 2019 $16,055,937 Other than temporary impairment losses on bond portfolio (112,802) Purchases 2,472,000 Proceeds (131,000 Balance at September 30, 2020 $18,284,135 Real estate held for sale and impaired loans are recorded at fair value on a nonrecurring basis. The fair value of real estate held for sale was based upon the listed sales price less expected selling costs, which is a Level 3 input. The resulting impairment charges were $0 for both periods ended September 30, 2020 and December 31, 2019, respectively. The following table summarizes the Company’s financial instruments that were measured at fair value on a nonrecurring basis: September 30, 2020 Level 1 Level 2 Level 3 Fair Value at September 30, Impaired Loans $ — $ — $ 5,026,828 $ 5,026,828 Real estate held for resale — — 550,045 550,045 Totals $ — $ — $ 5,576,873 $ 5,576,873 December 31, 2019 Level 1 Level 2 Level 3 Fair Value at December 31, Impaired Loans $ — $ — $ 4,557,326 $ 4,557,326 Real estate held for resale — — 651,398 651,398 Totals $ — $ — $ 5,208,724 $ 5,208,724 Loans with a carrying amount of $6,504,472 were considered impaired and written down to their fair market value of $5,026,828 as of September 30, 2020. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $1,477,644 as of September 30, 2020. Loans with a carrying amount of $5,986,813 were considered impaired and written down to their fair market value of $4,557,326 as of December 31, 2019. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $1,429,487 as of December 31, 2019. The Company held real estate for sale which was acquired through foreclosure or via deed in lieu of foreclosure with a fair value less costs to sell of $550,045 and $651,398 for the periods ended September 30, 2020 and December 31, 2019, respectively. Fair Value Valuation Technique Significant Unobservable Inputs(s) Range/Weighted September 30, 2020 Impaired Loans $5,026,828 Market or Income Approach Discount to Appraised Values 10-20% Real Estate Held for Sale $550,045 Market or Income Approach Discount to Appraised Values 10-20% December 31, 2019 Impaired Loans $4,557,326 Market or Income Approach Discount to Appraised Values 10-20% Real Estate Held for Sale $651,398 Market or Income Approach Discount to Appraised Values 10-20% The fair value of impaired loans referenced above was determined by obtaining independent third-party appraisals and/or internally developed collateral valuations to support the Company’s estimates and judgments in determining the fair value of the underlying collateral supporting impaired loans. The fair value of real estate held for resale referenced above was determined by obtaining market price valuations from independent third parties wherever such quotes were available for the other collateral owned. The Company utilized independent third party appraisals to support the Company’s estimates and judgments in determining fair value for other real estate owned.

Mortgage Loans Receivable and B

Mortgage Loans Receivable and Bond Portfolio	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Mortgage Loans Receivable and Bond Portfolio	4. MORTGAGE LOANS RECEIVABLE AND BOND PORTFOLIO At September 30, 2020, the Company had mortgage loans receivable totaling $18,462,121. The loans bear interest ranging from 0% to 10.25% with a weighted average of approximately 7.69% at September 30, 2020. At December 31, 2019, the Company had mortgage loans receivable totaling $22,425,178. The loans bear interest ranging from 0% to 10.25% with a weighted average of approximately 7.86% at December 31, 2019. The Company has a portfolio of secured church bonds at September 30, 2020 and December 31, 2019, which are carried at fair value. The bonds pay either semi-annual or quarterly interest ranging from 3.50% to 9.75%. The aggregate par value of secured church bonds equaled $19,054,937 at September 30, 2020 with a weighted average interest rate of 6.69% and $16,713,937 at December 31, 2019 with a weighted average interest rate of 6.43%. These bonds are due at various maturity dates through February 2047. The Company has recorded an aggregate other than temporary impairment of $770,802 and $658,000 for the periods ended September 30, 2020 and December 31, 2019, respectively primarily for the First Mortgage Bonds issued by Agape Assembly Baptist Church and Soul Reapers Worship Center. These bond series in the aggregate constitute approximately 10.12% and 6.13% of the bond portfolio at September 30, 2020 and December 31, 2019, respectively. The Company had maturities and redemptions of bonds of approximately $131,000 and $1,137,000 for the periods ended September 30, 2020 and December 31, 2019, respectively. The contractual maturity schedule for mortgage loans receivable and the bond portfolio as of September 30, 2020, is as follows: Mortgage Loans Bond Portfolio October 1, 2020 through December 31, 2020 $ 328,383 $ 70,000 2021 645,876 228,000 2022 1,440,414 150,000 2023 797,511 278,000 2024 1,731,671 484,000 Thereafter 13,518,266 17,844,937 18,462,121 19,054,937 Less loan loss and other than temporary impairment on bonds allowance (1,477,644) (770,802) Less deferred origination fees (217,091 ___-____ Totals $ 16,767,386 $ 18,284,135 The Company currently owns $529,000 First Mortgage Bonds and $497,000 Second Mortgage Bonds issued by Agape Assembly Baptist Church located in Orlando, Florida. The total principal amount of First Mortgage Bonds issued by Agape is $7,200,000, and the total principal amount of Second Mortgage Bonds issued is $715,000. Agape defaulted on its payment obligations to bondholders in September 2010. The church subsequently commenced a Chapter 11 bankruptcy reorganization proceeding regarding the property that secures the First Mortgage Bonds in December 2010. In October 2014, the bondholders of Agape agreed to a modification in the terms of their bonds which resulted in the temporary resumption of both principal and interest payments to both the first and second mortgage bond holders. Both the First Mortgage Bonds and Second Mortgage Bonds were modified to a fully amortized fixed rate, quarterly interest payment of 6.25% with a new maturity date of September 2037 for all the issued and outstanding bonds. The Company, along with all other bondholders, has a superior lien over all other creditors. The Church subsequently defaulted on their modification agreement in 2016 and no interest payments were made to bondholders during the period ended September 30, 2020. However, the trustee made a distribution to bondholders during 2017 of $18.54 per $1,000 bond as a repayment of principal only, effectively reducing the outstanding balance of each $1,000 bond to approximately $826. The trustee again initiated foreclosure action against the Church and prevailed in its pursuit to foreclose on the Church’s property on November 1, 2019. However, on the eve of the foreclosure sale, the Church again filed for bankruptcy protection. In October 2020, bondholders were asked by the trustee to accept or reject a plan of reorganization. The trustee is recommending bondholders accept the reorganization plan. The Company accepted the reorganization plan. Acceptance of the plan by bondholders could result in a return of approximately 67% of the original principal investment outstanding. The Company currently owns $900,000 First Mortgage Bonds issued by Soul Reapers Worship Center International located in Raleigh, North Carolina. The total principal amount of First Mortgage Bonds issued by Soul Reapers is $1,920,000. The Church has failed to make payments as required under the terms of the Trust Indenture. As a Bondholder, the Company expected to receive interest and principal payment(s) on time and according to the terms of the Bonds. The Company has not received any quarterly interest payments from the issuer for the nine-month period ended September 30, 2020. The Company has an aggregate other than temporary impairment of $770,802 and $658,000 for its bond portfolio at September 30, 2020 and December 31, 2019, respectively, which effectively reduces the bonds to the fair value amount management believes will be recovered. The Company did restructure one loan during the period ended September 30, 2020 and none for the period ended December 31, 2019, respectively. A summary of loans re-structured or modified for the periods ended September 30, 2020 and December 31, 2019 are shown below. All of the loans, except one, shown are currently performing under the terms of the modifications for their mortgage obligations. The first non-performing loan is a second mortgage loan with a current unpaid principal balance of approximately $45,000. This loan has been declared to be in default. September 30, 2020 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 7 $4,696,544 8.193% $3,544,635 6.059% December 31, 2019 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 6 $4,100,544 7.892% $3,185,720 5.58%

Secured Investor Certificates

Secured Investor Certificates	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Secured Investor Certificates	5. SECURED INVESTOR CERTIFICATES Secured investor certificates are collateralized by certain mortgage loans receivable or secured church bonds of approximately the same value as the certificates. The weighted average interest rate on the certificates was 6.18% and 6.33% for the periods ended September 30, 2020 and December 31, 2019, respectively. Holders of the secured investor certificates may renew certificates at the current rates and terms upon maturity at the Company’s discretion. Renewals upon maturity are considered neither proceeds from nor issuance of secured investor certificates. Renewals totaled approximately $915,000 and $793,000 for the periods ended September 30, 2020 and December 31, 2019, respectively. The secured investor certificates have certain financial and non-financial covenants identified in the respective series’ trust indentures. The estimated maturity schedule for the secured investor certificates at September 30, 2020 is as follows: October 1, 2020 through December 31, 2020 $ 334,000 2021 2,168,000 2022 1,042,000 2023 3,404,000 2024 1,335,000 Thereafter 15,875,250 $24,158,250 Less deferred offering costs (793,103) Totals $ 23,365,147

Transactions With Affiliates

Transactions With Affiliates	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Transactions With Affiliates	6. TRANSACTIONS WITH AFFILIATES The Company has an Advisory Agreement with Church Loan Advisors, Inc. (the “Advisor”). The Advisor is responsible for the day-to-day operations of the Company and provides office space and administrative services. The Advisor and the Company are related through common ownership and common management. For its services, the Advisor is entitled to receive a management fee equal to 1.25% annually of the Company's Average Invested Assets, plus one-half of any origination fee charged to borrowers on mortgage loans made by the Company. A majority of the independent board members approve the Advisory Agreement on an annual basis. The Company paid the Advisor management and origination fees of approximately $215,000 and $240,000 for the nine-month periods ended September 30, 2020 and September 30, 2019, respectively. The Company paid the Advisor management and origination fees of approximately $70,000 and $82,000 for the three-month periods ended September 30, 2020 and September 30, 2019, respectively. Advisory and origination fees are included in other operating expenses.

Line_of_Credit

Line_of_Credit	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Line_of_Credit	7. LINE OF CREDIT On April 9, 2018, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Alerus Financial, N.A., as lender (the “Lender”), and a Revolving Note (the “Note”) evidencing a $4,000,000 revolving loan (the “Revolving Loan”). The Lender agrees to make loans to the Company from time to time and after the date of the loan agreement and the Company may repay and re-borrow pursuant to the terms and conditions of the Revolving Loan as long as no borrowing causes that dollar limit to be exceeded and the Company is not otherwise in default on the Revolving Loan. The Revolving Loan is secured by a first priority security interest in substantially all of the Company’s assets other than collateral pledged to secure the Company’s secured investor certificates, both those currently issued and any potentially issued in the future. The Company borrowed against the line of credit and has an outstanding balance of $2,491,000 and $1,145,000 for the periods ended September 30, 2020 and December 31, 2019, respectively. The interest rate on the Note is the prevailing London Interbank Offering Rate (LIBOR) plus 2.70%. The Note is set to mature January 19, 2021.

Fair Value Financial Instrument

Fair Value Financial Instruments	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Fair Value Financial Instruments	8. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company is required to disclose the fair value information about financial instruments, where it is practicable to estimate that value. Because assumptions used in these valuation techniques are inherently subjective in nature, the estimated fair values cannot always be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The fair value estimates presented herein are based on relevant information available to management for the periods ended September 30, 2020 and December 31, 2019, respectively. Management is not aware of any factors that would significantly affect these estimated fair value amounts. As these reporting requirements exclude certain financial instruments and all non-financial instruments, the aggregate fair value amounts presented herein do not represent management’s estimate of the underlying value of the Company. The estimated fair values of the Company’s financial instruments, none of which are held for trading purposes, are as follows: September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Cash and equivalents $ 269,401 $ 269,401 $ 191,987 $ 191,987 Accounts receivable 109,612 109,612 125,539 125,539 Interest receivable 179,747 179,747 185,190 185,190 Mortgage loans receivable 18,462,121 23,108,195 22,425,177 24,573,176 Bond portfolio 18,284,135 18,284,135 16,055,937 16,055,937 Secured investor certificates 24,158,250 29,896,202 26,850,000 32,389,253

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Accounting Estimates	Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and the valuation of real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. Management believes these financial institutions have strong credit ratings and that the credit related to these deposits is minimal. The Company has not experienced any losses in such accounts.
Bond Portfolio	Bond Portfolio The Company accounts for the bond portfolio under the Accounting Standards Codification (ASC) 320, Investments-Debt and Equity Securities. The Company classifies the bond portfolio as “available-for sale” and measures the portfolio at fair value. While the bonds are generally held until contractual maturity, the Company classifies them as available for sale as the bonds may be used to repay secured investor certificates or provide additional liquidity or working capital in the short term.
Allowance for Loan Losses on Mortgage Loans Receivable	Allowance for Loan Losses on Mortgage Loans Receivable The Company records mortgage loans receivable at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance for loan losses on mortgage loans receivable and less deferred loan origination fees. The Company’s loan policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio with application of reserve percentages to specific loans based on payment status. This policy reserves for principal amounts outstanding on a specific loan if cumulative interruptions occur in the normal payment schedule of the loan, therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of the loan in the Company’s portfolio if the amount is in doubt of collection. Additionally, no interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. At September 30, 2020, the Company reserved $1,477,644 for fourteen mortgage loans. Nine of these loans are three or more mortgage payments in arrears of which two are declared to be in default. The total principal amount of these fourteen loans totaled approximately $6,504 A summary of transactions in the allowance for mortgage loans for the period ended September 30, 2020 and 2019 is as follows: Balance at December 31, 2019 $ 1,429,487 Provisions for loan losses 48,157 Loan charge-offs - Balance at September 30, 2020 $ 1,477,644 Balance at December 31, 2018 $ 1,672,003 Provisions for loan losses 73,105 Loan charge-offs (100,537) Balance at September 30, 2019 $ 1,644,571 The total impaired loans, which are loans that are in the foreclosure process or are declared to be in default, were approximately $589,000 and $810,000 at September 30, 2020 and December 31, 2019, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance for mortgage loans. Approximately $551,000 of the Company’s allowance for mortgage loans was allocated to these loans for the period ended September 30, 2020. Approximately $555,000 of the Company’s allowance for mortgage loans was allocated to impaired loans for the year ended December 31, 2019. The Company will declare a loan to be in default and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone. The Company’s policies on payments received and interest accrued on non-accrual loans are as follows: (i) The Company will accept payments on loans that are currently on non-accrual status when a borrower has communicated to us that they intend to meet their mortgage obligations. The accrual of interest on a loan is discontinued when the loan becomes 90 consecutive days delinquent or whenever management believes the borrower will be unable to make payments as they become due. The interest on these loans is subsequently accounted for on the cash basis or using the cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current or restructured and future payments are reasonably assured. No interest income was recognized on non-accrual loans for the periods ended September 30, 2020 and 2019, respectively. When a loan is declared in default according to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct the staff to charge-off the uncollectable receivables. Loans totaling approximately $2,802,000 and $3,263,000 exceeded 90 days past due but continued to accrue interest for the period ended September 30, 2020 and December 31, 2019, respectively. The Company believes that continued interest accruals are appropriate because the loans are well secured, not deemed to be in technical default and the Company is actively pursuing collection of past due payments.
Carrying Value of Long-Lived Assets	Carrying Value of Long-Lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of the estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values, and third party independent appraisals.
Revenue Recognition	Revenue Recognition Interest income on mortgage loans receivable and the bond portfolio is recognized as earned per the terms of the specific asset. Other income included with interest represents cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan.
Gain (Losses) on Real Estate Held For Sale	Gain (Losses) on Real Estate Held For Sale The Company records a gain or loss from real estate held for sale when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances real estate held for sale to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, real estate held for sale is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction prices and related gain (loss) on sale if a significant financing component is present.
Deferred Financing Costs	Deferred Financing Costs The Company defers the costs related to obtaining financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective interest method.
Income Taxes	Income Taxes The Company elected to be taxed as a Real Estate Investment Trust (REIT). Accordingly, the Company is not subject to Federal income tax to the extent of distributions to its shareholders if the Company meets all the requirements under the REIT provisions of the Internal Revenue Code. The Company evaluated its recognition of income tax benefits using a two-step approach to recognizing and measuring tax benefits when realization of the benefits is uncertain. The first step is to determine whether the benefit meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. Primarily due to the Company’s tax status as a REIT, the Company does not have any significant tax uncertainties that would require recognition or disclosure.
Subsequent Events	Subsequent Events The Company has evaluated events and transactions through November 13, 2020, the date the financial statements were available to be issued. The outbreak of the coronavirus (COVID-19) pandemic has affected churches due to shelter-in-place directives which has ceased or greatly curtailed social gatherings such as church worship services. The Company’s borrowers have experienced financial duress during the Covid-19 shelter in place restrictions, amplified by the financial setbacks for many of the church members who have lost their jobs, been furloughed, or had their incomes diminished. The Company has provided some temporary relief by allowing its borrower’s to either make interest only payments for a period of ninety days or forgo one monthly mortgage payment (forbearance). We provided nine churches totaling approximately $3,244,000, in principal outstanding, ninety days interest only payments and five churches totaling approximately $2,632,000, in principal outstanding, one-month forbearance of its mortgage payments. As of September 30, 2020, all churches, except two, have returned to full monthly amortization payments. Two churches totaling approximately $544,000, in principal outstanding, have remained on interest only payments. This relief will impact the Company’s revenue and the Company will experience declines in payments due from borrowers and missed bond payments on the bonds owned by the Company which will impact operating income and may potentially impact future distributions and the ability to make payments due on the Company’s certificates and dividends to its shareholders. The (COVID-19) has severely exacerbated challenges related to deal procurement since churches, who cannot meet and worship at previous attendance levels. This situation caused American Investors Group, Inc. to withdraw as a broker-dealer and the firm is no longer qualified to conduct securities transactions. The subsequent closing of American Investors Group, Inc. has not had an immediate effect on the Company. However, the Company will no longer be able to utilize this resource for interim loan financings or new church bond product in the foreseeable future. In addition, the Company’s current certificate offering terminated November 6, 2020. The Company is evaluating its options given this occurrence.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Allowance For Mortgage Loans Receivable	Balance at December 31, 2019 $ 1,429,487 Provisions for loan losses 48,157 Loan charge-offs - Balance at September 30, 2020 $ 1,477,644 Balance at December 31, 2018 $ 1,672,003 Provisions for loan losses 73,105 Loan charge-offs (100,537) Balance at September 30, 2019 $ 1,644,571

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurement Bond Portfolio	Fair Value Measurement September 30, 2020 Fair Value Level 3 Bond portfolio $ 18,284,135 $ 18,284,135 Fair Value Measurement December 31, 2019 Fair Value Level 3 Bond portfolio $ 16,055,937 $ 16,055,937
Change in Fair Value Bond Portfolio	Bond Portfolio Balance at December 31, 2019 $16,055,937 Other than temporary impairment losses on bond portfolio (112,802) Purchases 2,472,000 Proceeds (131,000 Balance at September 30, 2020 $18,284,135 Real estate held for sale and impaired loans are recorded at fair value on a nonrecurring basis. The fair value of real estate held for sale was based upon the listed sales price less expected selling costs, which is a Level 3 input. The resulting impairment charges were $0 for both periods ended September 30, 2020 and December 31, 2019, respectively. The following table summarizes the Company’s financial instruments that were measured at fair value on a nonrecurring basis: September 30, 2020 Level 1 Level 2 Level 3 Fair Value at September 30, 2020 Impaired Loans $ - $ - $5,026,828 $5,026,828 Real estate held for resale - - 550,045 550,045 Totals $ - $ - $5,576,873 $5,576,873 December 31, 2019 Level 1 Level 2 Level 3 Fair Value at December 31, 2019 Impaired Loans $ - $ - $4,557,326 $4,557,326 Real estate held for resale - - 651,398 651,398 Totals $ - $ - $5,208,724 $5,208,724 Loans with a carrying amount of $6,504,472 were considered impaired and written down to their fair market value of $5,026,828 as of September 30, 2020. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $1,477,644 as of September 30, 2020. Loans with a carrying amount of $5,986,813 were considered impaired and written down to their fair market value of $4,557,326 as of December 31, 2019. As a result, the Company recognized a specific valuation allowance against these impaired loans totaling $1,429,487 as of December 31, 2019. The Company held real estate for sale which was acquired through foreclosure or via deed in lieu of foreclosure with a fair value less costs to sell of $550,045 and $651,398 for the periods ended September 30, 2020 and December 31, 2019, respectively. Fair Value Valuation Technique Significant Unobservable Inputs(s) Range/Weighted September 30, 2020 Impaired Loans $5,026,828 Market or Income Approach Discount to Appraised Values 10-20% Real Estate Held for Sale $550,045 Market or Income Approach Discount to Appraised Values 10-20% December 31, 2019 Impaired Loans $4,557,326 Market or Income Approach Discount to Appraised Values 10-20% Real Estate Held for Sale $651,398 Market or Income Approach Discount to Appraised Values 10-20%

Mortgage Loans Receivable and_2

Mortgage Loans Receivable and Bond Portfolio (Tables)	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Mortgage Loans Receivable and Bond Portfolio	Mortgage Loans Bond Portfolio October 1, 2020 through December 31, 2020 $ 328,383 $ 70,000 2021 645,876 228,000 2022 1,440,414 150,000 2023 797,511 278,000 2024 1,731,671 484,000 Thereafter 13,518,266 17,844,937 18,462,121 19,054,937 Less loan loss and other than temporary impairment on bonds allowance (1,477,644) (770,802) Less deferred origination fees (217,091 ___-____ Totals $ 16,767,386 $ 18,284,135
Restructured Loans	September 30, 2020 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 7 $4,696,544 8.193% $3,544,635 6.059% December 31, 2019 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 6 $4,100,544 7.892% $3,185,720 5.58%

Secured Investor Certificates (

Secured Investor Certificates (Tables)	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Maturity Schedule Secured Investor Certificates	October 1, 2020 through December 31, 2020 $ 334,000 2021 2,168,000 2022 1,042,000 2023 3,404,000 2024 1,335,000 Thereafter 15,875,250 $24,158,250 Less deferred offering costs (793,103) Totals $ 23,365,147

Fair Value Financial Instrume_2

Fair Value Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Fair Value Company's Financial Instruments	September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Cash and equivalents $ 269,401 $ 269,401 $ 191,987 $ 191,987 Accounts receivable 109,612 109,612 125,539 125,539 Interest receivable 179,747 179,747 185,190 185,190 Mortgage loans receivable 18,462,121 23,108,195 22,425,177 24,573,176 Bond portfolio 18,284,135 18,284,135 16,055,937 16,055,937 Secured investor certificates 24,158,250 29,896,202 26,850,000 32,389,253

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Allowance For Mortgage Loans Receivable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Balance at beginning of the period	$ 1,429,487
Provisions for loan losses	48,157	$ 73,105
Loan charge-offs		(100,537)
Balance the end of the period	$ 1,477,644	$ 1,644,571

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurement Bond Portfolio (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Gross Bond portfolio	$ 18,284,135	$ 16,055,937
Fair Value Measurement Level 3
Gross Bond portfolio	$ 18,284,135	$ 16,055,937

Fair Value Measurements - Chang

Fair Value Measurements - Change in Fair Value Bond Portfolio (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Balance at December 31, 2019	$ 16,055,937
Other than temporary investements on bond portfolio	(112,802)	$ (150,000)
Purchases	1,721,000
Proceeds	(122,000)
Balance at June 30, 2020	$ 18,284,135

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Value Measurement Nonrecurring Basis (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Impaired Loans	$ 5,026,828	$ 4,557,326
Real estate held for resale	550,045	651,398
Total Fair Value Measurement	5,576,873	5,208,724
Fair Value Impaired Loans & Real Estate Held For Sale Level 1
Impaired Loans
Real estate held for resale
Total Fair Value Measurement
Fair Value Impaired Loans & Real Estate Held For Sale Level 2
Impaired Loans
Real estate held for resale
Total Fair Value Measurement
Fair Value Measurement Level 3
Impaired Loans	5,026,828	4,557,326
Real estate held for resale	550,045	651,398
Total Fair Value Measurement	$ 5,576,873	$ 5,208,724

Mortgage Loans Receivable and_3

Mortgage Loans Receivable and Bond Portfolio - Mortgage Loans Receivable and Bond Portfolio (Details)	Sep. 30, 2020USD ($)
Mortgage Loans
October 1, 2020 through December 31, 2020	$ 328,383
2021	645,876
2022	1,440,414
2023	797,511
2024	1,731,671
Thereafter	13,518,266
Subtotal	18,462,121
Less loan loss and other than temporary impairment on bonds allowance	(1,477,644)
Less deferred origination fees	(217,091)
Totals	16,767,386
Bond Portfolio
October 1, 2020 through December 31, 2020	70,000
2021	228,000
2022	150,000
2023	278,000
2024	484,000
Thereafter	17,844,937
Subtotal	19,054,937
Less loan loss and other than temporary impairment on bonds allowance	(770,802)
Less deferred origination fees
Totals	$ 18,284,135

Mortgage Loans Receivable and_4

Mortgage Loans Receivable and Bond Portfolio - Restructured Loans (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Notes to Financial Statements
Number of Loans	$ 7	$ 6
Original Principal Balance	4,696,544	4,100,544
Original Average Interest Rate	8	8
Unpaid Principal Balance	3,544,635	3,185,720
Modified Average Interest Rate	$ 6	$ 6

Secured Investor Certificates -

Secured Investor Certificates - Maturity Schedule Secured Investor Certificates (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended				129 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2035
Secured Investor Certificate Maturity Schedule		$ 24,158,250
Certificates Deferred Offering Costs		(793,103)
Secured Investor Certificates Net		$ 23,365,147
Secured Investor Certificates
Secured Investor Certificate Maturity Schedule	$ 334,000		$ 1,335,000	$ 3,404,000	$ 1,042,000	$ 2,168,000	$ 15,875,250

Fair Value Financial Instrume_3

Fair Value Financial Instruments - Fair Value Company's Financial Instruments (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Cash and equivalents	$ 269,401	$ 191,987
Fair Value
Cash and equivalents	191,987	191,987
Accounts receivable	125,539	125,539
Interest receivable	185,190	185,190
Mortgage loans receivable	22,425,177	24,573,176
Bond portfolio	16,055,937	16,055,937
Secured investor certificates	26,850,000	32,389,253
Carrying Amount
Cash and equivalents	269,401	269,401
Accounts receivable	109,612	109,612
Interest receivable	179,747	179,747
Mortgage loans receivable	18,462,121	23,108,195
Bond portfolio	18,284,135	18,284,135
Secured investor certificates	$ 24,158,250	$ 29,896,202

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Principal Balance Loans Receivable Allowance	$ 6,504,000	$ 5,987,000
Allowance for Mortgage Loans Receivable	1,477,644	1,429,487
Loans Exceeding 90 Days Past Due	2,802,000	3,263,000
Real Estate Held for Sale Carrying Value	550,045	651,398
Allowance Allocated to Impaired Loans	551,000	555,000
Loans In Default	589,000	$ 810,000
Interest Only 90 Day Period	3,244,000
Forbearance of Payments	2,632,000
Interest Only Over 90 Day Period	$ 544,000

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Loan Loss Reserve Church Bonds	$ 770,802	$ 658,000
Real Estate Impairement Charge
Impaired Loans	6,504,472	5,986,813
Fair Value Impaired Loans	5,026,828	4,557,326
Valuation Allowance Imparied Loans	1,477,194	1,429,487
Real estate held for resale	$ 550,045	$ 651,398

Mortgage Loans Receivable and_5

Mortgage Loans Receivable and Bond Portfolio (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Notes to Financial Statements
Mortgage Loans Receivable Gross	$ 18,462,121	$ 22,425,178
Church Bonds Owned Gross	19,054,937	16,713,937
Bond Reserve Fund	770,802	658,000
Agape First Mortgage Bonds	529,000	529,000
Agape Second Mortgage Bonds	497,000	497,000
Agape First Mortgage Bonds Gross	7,200,000	7,200,000
Agape Second Mortgage Bonds Gross	715,000	715,000
Agape Distribution to Bondholders	19	19
Principal Balance Agape Bonds	826	826
Soul Reapers First Mortgage Bonds	900,000
Soul Reapers First Mortgage Bonds Gross	1,920,000
Maturities and Redemption of Bonds	131,000	1,137,000
Restructured Mortgage Loans
Non-performing restuctured loans	$ 45,000

Secured Investor Certificates_2

Secured Investor Certificates (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Notes to Financial Statements
Renewals Secured Investor Certificates	$ 915,000	$ 793,000

Transactions With Affiliates (D

Transactions With Affiliates (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Notes to Financial Statements
Advisor Managment Fees	$ 70,000	$ 82,000	$ 215,000	$ 240,000

Line_of_Credit (Details Narrati

Line_of_Credit (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Notes to Financial Statements
Line Of Credit	$ 4,000,000
Outstanding Line of Credit	$ 2,491,000	$ 1,145,000