Most entrepreneurs know that finding business financing is necessary to manage cash flow or grow their operations. Getting a small business loan is often difficult, especially if you have bad credit or are a woman or minority business owner. But if you live in the state of Indiana, then you’re in luck. According to the Indiana Statewide CDC, Indiana was named the number one state with the largest loans. 
If you’re looking for the best Indiana small business loan, look no further. In this guide, we’ll go over the best Indiana small business loan options, discuss a few alternative online loans, and mention some fantastic grant resources specifically for small businesses.
As we mentioned earlier, the state of Indiana is ripe with small business loans. You’ll find that most of the business loan options listed below are from community lenders and nonprofit organizations, as well as a few traditional financing institutions such as banks and credit unions. Without further ado, here are the top six small business loan options for Indiana businesses.
The Indiana Statewide Certified Development Corporation (Indiana Statewide CDC) is one of the top providers of SBA 504 loans in Indiana. SBA 504 loans are typically used to purchase property or equipment. The maximum loan amount for a 504 loan is $5 million. Generally, half of an SBA 504 loan is provided by an SBA-approved lender, while the Indiana Statewide CDC covers the other half. Thousands of businesses have received real estate business loans through this program.
To apply for a 504 loan backed by the Indiana Statewide CDC, you’ll need to download and submit an application found on their website. You’ll need to include your personal and business information and thoroughly answer questions regarding your project.
Indy Chamber is a nonprofit organization that advocates for the interests of the regional Indianapolis business community. They also provide business term loans ranging anywhere from $1,000 to $50,000. These loans are available for new and existing businesses with less than five employees. Interest rates for these term loans range from 6% to 9%, with fees up to 3%. If you want to make early repayments on your loan, there are no prepayment penalties.
Eligible applicants must be 18 years or older and reside in Central Indiana. There is no minimum credit score required. Businesses must be for-profit. To start the application process, you’ll be required to meet with a coach who will discuss your business financing needs and help you get started on your loan application.
If your business is in Harrison County, you’ll be pleased to know that you can apply for a small business loan between $5,000 to $50,000. These loans have fixed interest rates of only 1.5% and have term lengths ranging from two to ten years. Your business must be located in Harrison County or planning to relocate there to be eligible for a business loan. You’ll also need to:
All you need to do to apply is download Harrison County’s small business loan application form and submit some documentation. This includes, but is not limited to, business history, project description, projected revenue and expenses, and federal tax returns.
Bankable is a community development financial institution (CDFI), an SBA-certified microlender, and community advantage lender. Bankable works with business owners to improve their business credit, financial literacy, and much more to increase their chances of getting financing from traditional lenders. They provide affordable business loans in addition to educational resources. Bankable offers three types of business loans: microloans, community advantage loans, and credit builder loans.
Bankable does not have any minimum credit score or collateral requirements. To apply, you simply need to fill out their application and submit the requested documentation, which includes tax returns and financial statements.
Build Fund is another CDFI. Operated by Renew Indianapolis, a nonprofit focused on improving economic development and housing in the Indianapolis area. Loan amounts range from $75,000 to $950,000. Eligible businesses that receive a loan must use the funds to generate new jobs or operate in underserved areas. Newer businesses and existing businesses can both apply for a loan from Build Fund. A loan committee will then review all of the applications.
Purdue Federal Credit Union is one of the best credit unions in Indiana. They’ve been around since 1969 and, since then, have grown to 82,000 members. When it comes to business loans, this credit union offers credit lines, real estate loans, equipment loans, and even SBA 504 loans.
All businesses must be members of the Purdue Federal Credit Union to qualify for loan eligibility. Membership to the Purdue Federal Credit Union requires necessary personal information. You must also be within the credit union’s field of membership. Business loan applicants will also need to provide appropriate documents, which vary depending on the type of loan.
With so many Indiana business loan options, an online business loan may not be necessary. However, online small business loans are steadily growing in popularity, mostly because of their fast application process and easier eligibility requirements. The following online business loans are some of the most well-known in the nation.
Based in the UK and U.S., Funding Circle has financed over 90,000 small businesses globally through online business loans. Funding Circle has a suite of small business loans, from term loans to SBA loans to lines of credit and invoice factoring. If you’re not sure about which loan product is right for you, Funding Circle simplifies the process. By using their online application, Funding Circle can match you with the right business financing option.
For newer startups or businesses with bad credit, Fundbox is a solid financing resource. They offer business lines of credit of up to $100,000 with three to six-month terms. We highly recommend Fundbox for businesses that don’t necessarily need large amounts of financing and are having trouble securing financing elsewhere. To get a line of credit from Fundbox, your business needs:
Fundbox’s application process is done using its online platform. You don’t need mounds of paperwork to submit your application—sync your business accounting software and input basic information about your business. You can potentially get a funding decision in as fast as a few minutes. However, we do want to note that your credit may receive a hard pull if you decide to accept a loan from Fundbox.
Bluevine is another online lender that offers small business financing through an online platform. They provide business lines of credit of up to $250,000. To qualify, businesses need at least 24 months in business, a FICO score of 625 or more, and at least $40,000 in monthly revenue.
Interest rates start at 6.2% and terms are either six or 12 months.
If you’re interested in Indiana small business grants, there are several grant programs at your fingertips. Small business grants can be a great way to get free cash for your business. However, grants typically have a longer application process and the process to obtain grants is generally much more competitive than business loans. That said, it doesn’t hurt to look into grant funding. Indiana’s Small Business Restart Fund is a new grant fund that awards up to $10,000 for eligible small businesses seeking business expense reimbursements. Qualified expenses include rent and mortgage payments, utilities, infrastructure improvements, and more
When it comes to small business loans, Indiana is full of options. From SBA to CDFI business loans, there are many advantages to operating a small business in Indiana. The state is rich with small business resources, and if you are looking for affordable financing, you’ll have plenty of places from which to choose.