Entrepreneurs Like These Small Business Loans in Indiana Now

Small Business Loans in Indiana: Your 2025 Guide

If you’re a Hoosier entrepreneur or small business owner, accessing the right financing is key to your company’s 2025 growth. This comprehensive Indiana-focused guide explores all major loan types—especially working capital loans—so you can compare options, avoid common pitfalls, and choose the right local lender for your business needs. Let’s break down the market, highlight top Indiana lenders, and step through the current application process.

Indiana’s Small Business Economy in 2025

Indiana’s small businesses remain the backbone of its economy, comprising over 99% of all firms and employing nearly 1.2 million people as of Q1 2025. Rapid digital adoption and manufacturing expansion in these areas have made quick access to flexible capital more important than ever:

• Indianapolis-Carmel-Anderson: Tech startups and logistics dominate, driving a need for revolving credit and seasonal working capital.
• Fort Wayne: Traditional manufacturing and healthcare service businesses seek larger term loans for upgrades and payroll stabilization.
• Evansville: Food processing, tourism, and construction companies look for equipment and working capital funding.
• South Bend-Mishawaka: Education, biotech, and retail businesses often leverage SBA-backed and working capital loans.
• Bloomington: University-linked startups and Main Street businesses demand flexible working capital lines for operational agility.
• Lafayette-West Lafayette: Agriculture tech and R&D firms require microloans and business credit lines for scaling in 2025.
• Muncie: Small manufacturers and creative enterprises seek quick capital for renovation and inventory growth.

Top Indiana Business Lenders in 2025

These lenders are among the most active in Indiana’s small business sector in 2025:

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Page 1 of 5

Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

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What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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• Lake City Bank – Indiana’s largest bank by assets, offering fast-turnaround working capital lines and SBA 7(a) term loans.
• Old National Bank – Headquartered in Evansville with robust business lines of credit and microloan programs for startups.
• First Financial Bank – Expanding its Indiana business lending, especially in Indianapolis and Lafayette.
• Indiana Statewide Certified Development Corporation (CDC) – Key provider of SBA 504 loans for equipment and real estate but also offers flexible working capital loans for eligible businesses.
• Horizon Bank – Active in Fort Wayne and South Bend, specializing in revolving and short-term working capital financing.
• Accion Opportunity Fund – Nonprofit lender supporting minority, women, and rural entrepreneurs statewide with working capital microloans.

Understanding Working Capital Loans in Indiana

As we enter 2025, working capital loans are the most in-demand financing for small businesses navigating post-pandemic growth and inflation pressures. Here’s what sets them apart:

• PURPOSE: Fund day-to-day operational expenses, payroll gaps, inventory purchases, or emergency repairs.
• TERMS: Short-term (typically 6–36 months), often unsecured, with flexible draw/payback structures.
• AMOUNTS: Usually $5,000–$500,000, depending on revenue and credit profile.
• INTEREST RATES: In Indiana, 2025 working capital loan APRs start at 8.75% for top-rated borrowers, up to 24% for fast-turnaround online loans.
• APPROVAL: Many Indiana lenders now offer 24- to 72-hour funding with minimal documentation for existing customers.

These loans stand apart from term loans (used for equipment or expansion), business lines of credit (revolving, renewable funds), and SBA programs (which offer specialized terms).

Popular Types of Indiana Business Loans Compared

Step-by-Step: Apply for a Working Capital Loan in Indiana (2025)

1. Assess Your Need: Calculate your precise working capital gap (payroll, ramp-up costs, seasonal inventory, etc.). Use a monthly cash flow forecast to guide you.
2. Choose Your Lender: Compare offers from at least three of the Indiana institutions listed above, as well as mission-driven lenders like Accion or national fintech platforms.
3. Prepare Your Documents: Typically, you’ll need:
   • 2 years business tax returns (1 year for startups or microloans)
   • Year-to-date business financial statements (P&L and balance sheet)
   • 3–6 months recent business bank statements
   • Business license/formation documents
   • Owner identification/credit check consent
4. Submit Application: Most Indiana lenders provide secure online portals or work via SBA’s Lender Match. In-person options are available for larger requests.
5. Underwriting & Offers: Expect a decision in 1–7 business days. You’ll be presented with loan terms: amount, rate, repayment schedule, and covenants if applicable.
6. Review & Close: Carefully review the agreement, ask about any fees or early repayment penalties, then sign electronically or in-branch. Funds are usually wired within 1–3 days after closing.

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

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Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

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For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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Tip: If you have less-than-perfect credit, seek Indiana CDFIs or nonprofits—like Accion or Indiana Statewide CDC—which offer tailored products for new and underserved entrepreneurs.

Success Stories: Indiana Small Business Funding in 2025

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

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If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

Page 3 of 3

Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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Here are three recent examples of Indiana entrepreneurs leveraging working capital financing for success:

• Logistics Startup, Indianapolis: Jane Liu secured a $75,000 working capital loan from Horizon Bank at an 11% APR, with 18-month term, allowing her to upgrade fleet technology and cover Q2 payroll during a surge in contract wins.
• Restaurant Owner, Bloomington: Miguel Rodriguez turned to Old National Bank for a $28,000 line of credit to manage supplier price swings and seasonal slowdowns. With flexible draws, he maintained cash reserves and grew staff retention by 25% in 2025.
• Manufacturing Firm, Fort Wayne: Indiana Statewide CDC extended a $200,000 working capital loan at 10.5% APR. The business used funds to refinance high-interest debt and launch a new product line, accelerating year-on-year growth by 18%.

Frequently Asked Questions

What credit score do I need for an Indiana working capital loan in 2025?

Most lenders prefer a minimum 660 FICO, but CDFIs and microloan providers may work with 600+.

How quickly can I get funded in Indiana?

Simple working capital loans may be disbursed within 24–72 hours. More complex or SBA-backed loans may take 2–4 weeks.

What if my business is less than two years old?

Consider microloans (Accion, Old National), local CDFIs, or lines of credit with a cosigner or additional collateral.

Indiana Small Business Resources for 2025

• Indiana Small Business Development Center (ISBDC)
• SBA Indiana District Office
• Indiana Office of Community & Rural Affairs
• SCORE Indiana

Conclusion: Grow Your Indiana Business with the Right Loan

Indiana’s dynamic small business community continues to thrive in 2025, driven by accessible financing and a supportive network of local lenders and nonprofit partners. Whether you need a bridge for your cash flow or funding for your next big idea, working capital loans and lines of credit offer fast, flexible solutions. Compare offers, prepare thoroughly, and partner with trusted Indiana lending institutions to maximize your business potential this year.

Get a no obligation quote today. 

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

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