Storehouse Strategy | Crown and Cross Investment Opportunity

Building Kingdom Infrastructure Through Business Acquisition

Churches can generate sustainable revenue by acquiring profitable businesses through for-profit subsidiaries. 35%+ annual returns funding gospel ministry in perpetuity.

35%+

Annualized return on business acquisitions vs 10% S&P 500 average

10M

Small businesses changing hands in the next decade (Silver Tsunami)

10%

Down payment via SBA 7(a) loans (90% leverage)

95%

SBA-backed acquisitions still operating after 5 years

The Problem and Opportunity

Churches face structural funding constraints while 10 million profitable businesses need buyers

The Structural Problem Churches Face

Most churches depend entirely on tithes and offerings, which fluctuate with economic conditions, limit ministry capacity, and create perpetual fundraising fatigue. Meanwhile, church reserves sit in savings accounts earning 0.5% while inflation destroys value at 3-4% annually.

The stewardship question: Churches are not called to bury their talents. Reserves sitting idle are not faithful stewardship when productive assets are available that generate 35%+ returns while funding gospel ministry.

The Silver Tsunami: A Once-in-a-Generation Opportunity

Baby Boomers own approximately 10 million small businesses and are retiring en masse between 2024-2034. This creates unprecedented opportunity:

  • Supply exceeds demand: More businesses for sale than qualified buyers, creating downward pressure on valuations
  • Established operations: 20-40 years of operating history with documented financials and proven cash flow
  • Seller financing availability: Retiring owners often willing to hold notes, reducing down payment requirements
  • Limited time window: By 2030, the best businesses will be sold. Early movers get first choice at reasonable valuations.

This is Joseph seeing the seven years of plenty. The wise steward acts now.

The Solution: For-Profit Subsidiaries

Churches create separate legal entities that qualify for SBA financing while protecting tax-exempt status

Legal Structure

Churches cannot directly obtain SBA loans because nonprofits are excluded. However, churches CAN create for-profit subsidiary entities that qualify for SBA financing.

  • Church owns 100% of subsidiary
  • Subsidiary obtains SBA 7(a) loan
  • Subsidiary acquires business
  • Profits flow back to church
  • Church's 501(c)(3) status protected

Target Industries

Focus on recession-resistant businesses with recurring revenue, low owner involvement, and 2.5-4.5x SDE valuations:

  • HVAC (heating, cooling, maintenance)
  • Plumbing (service and installations)
  • Electrical contracting
  • Accounting and tax services

These industries share: inelastic demand, recurring revenue, license barriers, and established businesses at reasonable prices.

SBA 7(a) Financing

Exceptional loan terms make acquisitions accessible:

  • 10% down payment minimum
  • 90% financed via SBA guarantee
  • 10-year term (25 if real estate)
  • Prime + 2.75% rate (~10-11%)
  • No prepayment penalty

This allows churches to preserve cash, maintain manageable payments, and generate positive cash flow from day one.

Example: $1.8M HVAC Business Acquisition

Business Profile: $2.5M revenue, $400K SDE, mostly absentee owner working 10-15 hours/week, 60% residential service with 400+ active service contracts.

Acquisition Structure:

  • Purchase price: $1,800,000 (4.5x SDE, market rate)
  • Down payment (10%): $180,000
  • SBA 7(a) loan: $1,620,000 at 10% for 10 years
  • Monthly payment: $21,400

Year 1 Cash Flow:

  • SDE: $400,000
  • New GM salary: $100K (vs $150K owner paid himself)
  • Adjusted cash available: $450,000
  • Less debt service: $256,800
  • Less reserves: $25,000
  • Available for distribution: $168,200
  • Distribution to church: $140,000
  • Less UBIT (21%): $29,400
  • Net to church Year 1: $110,600

Year 1 Return on Investment: 61.4% cash-on-cash ($110,600 / $180,000)

Post-Loan Payoff (Years 11+): Church receives $369,000/year net (after UBIT) in perpetuity, plus owns a $3.1M business asset.

10-Year Total Value Creation: $1.8M in distributions + $3.1M business equity = $4.9M total value from $180K investment (2,632% ROI / 35.1% annualized)

Critical Strategic Principle: Reinvest for Multiplication

The projections above assume modest growth. However, churches that reinvest 50%+ of cash flow into marketing, automation, and scaling during the first 5-7 years see dramatically superior returns. A business growing at 12% annually (achievable with proper marketing investment) instead of 5% generates an additional $3M in total value over 10 years.

This is the difference between faithfully multiplying talents and merely collecting rent. We provide comprehensive marketing and scaling support precisely because this reinvestment phase determines whether churches build $3M assets or $8M assets. Steward for multiplication, not extraction.

Three-Stage Model

A proven path from concept validation to nationwide church impact

1

Proof of Concept

Acquire 2-3 businesses to validate the model. Raise $400-600K from strategic partners and advisors to demonstrate the for-profit subsidiary structure works with SBA lenders.

What investors get: 20% of net cash flow for 5 years plus 10% equity bonus at Year 5.

2025-2027 | 39-43% Annualized Return
2

Church Consulting

Launch comprehensive acquisition support service for churches. Provide entity formation, business sourcing, due diligence, SBA loan support, and post-acquisition stabilization.

Service fee: $22-28K per acquisition. Target: 350 churches over 10 years.

2027+ | $19.6M Projected Revenue
3

Future Expansion

Potential fund structure for multiple church acquisitions with shared due diligence, legal infrastructure, and acquisition expertise. Enables smaller churches to participate.

Status: Future consideration, not current focus.

2029+ | Under Development

Kingdom Impact

This is not about getting rich. This is about stewardship and dominion.

The Dominion Mandate

God commanded humanity to fill the earth and subdue it. This includes economic activity and productive use of resources. Churches should be centers of cultural and economic influence.

The Parable of the Talents

God condemned the servant who buried his talent and praised those who invested and multiplied. Churches sitting on capital while ignoring 35% ROI opportunities are burying their talents.

Joseph's Storehouses

Joseph built storehouses during plenty to provide during scarcity. Churches need sustainable revenue sources that outlast economic cycles and donor sentiment.

Early Church Example

The early church pooled resources and distributed according to need through community assets managed for collective benefit. Business acquisition is the modern equivalent.

Practical Ministry Outcomes

Churches with $500K/year in business-generated revenue can:

  • Fully fund 5-10 missionary families without dependence on donor cycles
  • Plant 2-3 daughter churches per decade with sustainable support
  • Pay lead pastor $100K+ with full benefits, eliminating financial stress
  • Support 2-3 additional full-time staff members
  • Fund local crisis pregnancy centers, classical schools, and community ministries
  • Create scholarship funds for seminary students and ministry apprentices
  • Build endowments that fund ministry in perpetuity
  • Weather economic downturns without cutting staff or programs

This is not hypothetical. This is what $500K/year buys. A church acquiring 3 businesses over 10 years can generate this level of sustainable income.

Get Involved

We are seeking strategic partners for Stage 1 proof of concept: investors, advisors, and churches ready to pioneer this model.

Investment Minimums: $50,000 for Stage 1 proof of concept.
Timeline: Capital raise closes Q1 2026, first acquisition Q2 2026.
Structure: Revenue participation agreement, not a regulated security.

What We Provide

Comprehensive support from entity formation through post-acquisition stabilization

📋

Entity Formation

For-profit subsidiary creation, state registration, corporate governance, tax planning, and UBIT mitigation strategy.

🔍

Business Sourcing

Access to vetted deal flow, financial analysis, market assessment, and valuation guidance.

Due Diligence

Comprehensive investigation, financial audit support, legal review, and risk assessment.

🏦

SBA Loan Support

Lender selection, application assistance, underwriting support, and closing coordination.

🚀

Transition Management

30-60-90 day roadmap, general manager training, systems implementation, and KPI tracking.

📈

Growth Marketing (Strongly Recommended)

We execute digital campaigns, implement automation, and drive measurable growth. Churches investing $3K/month in marketing typically see $100-200K in additional annual revenue within 12-24 months. This creates $2-3M in additional business value over 10 years.

© 2025 Crown and Cross. All rights reserved.

This is not a regulated security offering. All investments involve risk.

Questions? [email protected]

Church Qualification Process

Experience what churches will go through to determine if they're ready for the Storehouse Strategy

Step 1 of 6

Governance Structure

First, we need to understand your church's legal and governance foundation.

Step 2 of 6

Financial Capacity

Now let's assess your church's financial readiness for business acquisition.

Step 3 of 6

Legal & Tax Status

We need to confirm your tax-exempt status and legal compliance.

Step 4 of 6

Operational Readiness

Let's assess your church's administrative capacity to manage a subsidiary.

Step 5 of 6

Personal Guarantees & Risk Tolerance

SBA loans require personal guarantees from board members. This is often the most challenging requirement.

Step 6 of 6

Theological & Cultural Alignment

Finally, let's assess your church's theological perspective on stewardship and cultural engagement.