SBA Loans in Indiana for Small Businesses Now

SBA Loans in Indiana: The Definitive 2025 Guide for Small Businesses

The Indiana small business landscape is thriving in 2025, with record-high entrepreneurial activity spanning Indianapolis, Fort Wayne, Evansville, South Bend, and beyond. Backed by economic development incentives and SBA support, Indiana’s entrepreneurs are strengthening the state’s innovation and job creation. This comprehensive guide details every aspect of SBA loans in Indiana, including program overviews, eligibility, current rates, preferred lenders, step-by-step applications, and powerful state resources to help your business secure the funding it needs to grow.

2025 SBA Loan Options for Indiana Small Businesses

• SBA 7(a) Loans: The most popular and versatile loan for working capital, equipment, acquisition, expansion, and owner-occupied real estate. In 2025, fixed rates start at prime + 2.75% with repayment terms up to 25 years for real estate and 10 years for working capital/equipment.
• SBA 504 Loans: Designed for purchasing or renovating commercial real estate and major equipment. Indiana businesses benefit from low 10, 20, or 25-year fixed rates (often 6.2–6.8%) and down payments as low as 10%.
• SBA Microloans: Up to $50,000 for startups or emerging businesses needing funds for inventory, supplies, working capital, or machinery, featuring flexible underwriting to help bridge early-stage gaps.
• SBA Express Loans: Streamlined approvals (often within 36 hours) for loans up to $500,000—ideal for working capital, equipment, or fast-moving opportunities.
• SBA Export Loans: Indiana exporters can access dedicated funding with higher limits for global business expansion, inventory financing, and working capital to fulfill international contracts.

Startup Financing Focus: Launching and Growing Your Indiana Business

Indiana has cultivated a robust startup ecosystem, working in partnership with the SBA to catalyze innovation—especially in fields like advanced manufacturing, agricultural technology, logistics, life sciences, and IT.

• Flexible underwriting: Startups often face difficulty with traditional banks. SBA loans enable financing with as little as 10–20% down and can factor future business projections.
• Microloans for launches: Many startups secure $25,000–$50,000 in microloans for initial inventory, hiring, and operations.
• 7(a) and Express for up to $500,000: As your business plan stabilizes, 7(a) and Express loans fill the gap for larger funding needs, supporting further location build-outs or higher startup costs.

Eligibility & Credit Requirements for Indiana SBA Loans

Regardless of business stage or industry, Indiana entrepreneurs must meet standard SBA eligibility criteria:

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.

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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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• For-profit entity based in Indiana
• Meet the SBA size standard by industry
• Reasonable owner equity investment into the business
• Show ability to repay through business revenues
• No delinquent federal debt or recent bankruptcy

Credit score requirements: Lenders generally seek owner personal FICO scores of 660+ for 7(a)/504 loans and may consider scores as low as 620 for microloans. Startups may require personal guarantees and collateral.

Down payment: Typically 10–20% for most loans. Real estate loans through 504 may be as low as 10% down for strong applicants.

Featured SBA Preferred Lenders in Indiana (2025)

✅ 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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Indiana boasts a competitive SBA Preferred Lender network offering high approval rates and fast processing times. Top participating banks and credit unions for 2025 include:

• Old National Bank (Headquartered in Evansville; statewide coverage; strong in working capital and real estate lending.)
• Huntington National Bank (Extensive Indiana branch network; leading volume SBA 7(a), 504, and Express originator.)
• First Merchants Bank (Muncie-based; deep experience with acquisition and expansion financing.)
• Centier Bank (Regional focus in northern Indiana; prominent SBA Microloan and 7(a) lender.)
• Lake City Bank (Specializes in owner-occupied commercial real estate and equipment lending; North/Central Indiana focus.)

Step-by-Step: Indiana SBA Loan Application Process

1. Assess Your Funding Needs: Calculate how much you need and clearly define your use of funds (startup costs, equipment, real estate purchase, working capital, etc.).
2. Develop or Update Your Business Plan: Include detailed financial projections, market research, management background, and growth strategy. Use Indiana SBDC resources for support.
3. Gather Documentation:
   • Personal and business tax returns (past 2-3 years, if applicable)
   • Personal financial statement/credit report
   • Entity formation documents
   • Business licenses, leases, legal documents
   • Collateral documentation (if needed)
4. Contact a Preferred SBA Lender: Approach one or more of the institutions listed above to discuss your eligibility and the best product fit.
5. Complete the SBA Loan Application: Your chosen lender will provide SBA Form 1919, request required documents, and guide you through the process.
6. Lender Underwriting & SBA Review: Preferred lenders expedite the review and coordinate directly with the Indiana SBA district office when required.
7. Loan Approval, Closing, and Disbursement: Upon approval, you’ll sign closing documents and receive a lump sum or line of credit according to your agreement.

✅ 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

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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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Total turnaround time: 7(a) and 504 loans average 30–45 days; Express loans can fund as quickly as 2–3 weeks.

Three Indiana SBA Success Stories (2023–2025)

• Advanced Manufacturing Startup, Indianapolis: Awarded $485,000 SBA 7(a) loan via Huntington National Bank for equipment, facility lease, and payroll, enabling hiring of 14 full-time staff within 12 months.
• Women-Owned Café, Bloomington: Launched with an $40,000 SBA microloan through Indiana Small Business Development Center and Centier Bank, providing for kitchen buildout, initial inventory, and working capital. Broke even within 9 months.
• Logistics Expansion, Fort Wayne: Acquired a competitor and relocated via $2.1M SBA 504 loan (Old National Bank and Indiana Statewide CDC partnership), securing a new 27,000 sq. ft. warehouse.

Indiana’s SBA District Office & Local Resources (2025)

• SBA Indiana District Office: 8500 Keystone Crossing, Suite 400, Indianapolis, IN 46240 (inquiries; Phone: 317-226-7272)
• Indiana SBDC: 10 regional offices assist with business plans, growth strategies, and loan packaging (isbdc.org)
• SCORE Indianapolis: Free mentoring and SBA loan workshop programs
• Local Community Development Corporations (CDCs) for 504 project facilitation

Indiana Economic Development Incentives (2025)

Pairing state incentives with SBA loans amplifies purchasing power:

• EDGE Tax Credits: Encourage job creation (Indiana Economic Development Corporation)
• Hoosier Business Investment Tax Credit: Supports capital investment in new equipment and facility expansion
• Next Level Jobs: Upskilling and workforce training grant programs
• Urban Enterprise Zones & Opportunity Zones: Special state and federal incentives tied to designated areas

Why Choose an SBA Loan in Indiana?

• Lower down payments: As little as 10%—retain more cash for operations.
• Longer repayment terms: Up to 25 years for real estate, reducing the pressure on your cash flow.
• Competitive interest rates: Fixed and variable options, typically lower than most non-SBA business loans.
• Government-backed: SBA guarantees 50–85% of the loan, improving approval odds and enabling financing for startups and high-growth businesses.

2025 Outlook: SBA Lending Trends in Indiana

With the SBA raising maximum Express loan limits to $500,000, streamlining digital applications, and expanding outreach to underrepresented entrepreneurs, 2025 is a robust year for business funding in Indiana. Pairing SBA financing with Indiana’s pro-business climate and developmental programs gives small businesses a powerful edge in growth and profitability.

Start Your Indiana SBA Loan Application Today

Whether you’re launching a new venture, purchasing a business, growing your exports, or expanding your commercial footprint, Indiana’s SBA lending ecosystem offers flexible funding solutions. Contact a preferred lender or your local SBA district office, and take the next step toward fueling your business success in Indiana.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

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

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