Small Business Loans in Indiana for Entrepreneurs Now

Small Business Loans in Indiana: Complete 2025 Guide for Entrepreneurs

Indiana’s vibrant business landscape continues to grow, with entrepreneurs fueling the state’s robust manufacturing, logistics, tech, and service sectors. If you’re seeking capital to start, expand, or stabilize your small business in the Hoosier State, 2025 brings myriad financing options, from SBA loans to flexible working capital solutions. This comprehensive guide covers everything Indiana business owners need to know—loan types, rates, lenders, application steps, and local market intelligence to make smart funding decisions.

Indiana’s Small Business Climate in 2025

Indiana boasts a business-friendly environment with low corporate taxes, strategic infrastructure, and accessible support networks. The state’s GDP saw above-average growth in Q1-Q2 2025, particularly in:

• Indianapolis Metro Area – Thriving tech startups, logistics hubs
• Fort Wayne & Allen County – Advanced manufacturing, healthcare expansion
• Evansville Region – Agribusiness, plastics, and distribution
• Northwest Indiana (Gary, Hammond) – Steel, construction, and transportation resurgence
• Bloomington & Monroe County – University-linked innovation, retail, and hospitality
• Lafayette/West Lafayette – Agri-science and advanced engineering

In 2025, Indiana’s small business owners are capitalizing on rising demand, but access to capital is key to sustaining momentum. Let’s break down the loan options available and how to secure the best funding for your Indiana business.

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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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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SBA Loans in Indiana: The Gold Standard for Affordable Financing

SBA loans remain the top choice for Indiana entrepreneurs who qualify, thanks to their favorable terms and government backing. In 2025, the most popular programs are the SBA 7(a), Express, and CDC/504 loans.

Main SBA Loan Types for Indiana Businesses

• SBA 7(a) Loan: Up to $5 million for general business purposes. 2025 rates: Prime + 2.25%–4.75%. Average approval in 3–6 weeks.
• SBA Express: Up to $500,000. Fast turnaround, less paperwork. Rates slightly higher than 7(a), but funding in as fast as 1–2 weeks.
• SBA CDC/504: For equipment or real estate. Up to $5.5 million, fixed rates for up to 25 years. Low down payment (10%).

Top Indiana SBA Lenders in 2025

1. Lake City Bank – Largest Indiana-based SBA lender. Fast, locally-driven decisions.
2. Centier Bank – Strong in Northern Indiana, supporting family-run and franchise operations.
3. First Financial Bank – Covers Indianapolis, Evansville, and Lafayette.
4. Huntington National Bank – Top 10 national SBA lender with deep roots in Indiana.
5. Old National Bank – Evansville-based, supporting businesses throughout the state.
6. KeyBank – Service across all major metro areas, robust SBA team.

What Does an SBA Loan Cover?

• Startups and new ventures
• Working capital for daily operations
• Buying equipment or vehicles
• Real estate purchase or renovation
• Refinancing higher-interest debt

2025 Market Snapshot: Why SBA Loans Stand Out in Indiana

After a period of elevated interest rates, SBA-backed products offer Indiana business owners predictability and manageable monthly payments. SBA approvals in Indiana are trending slightly faster in 2025, with more lenders leveraging digital application tools and state government incentives.

Step-by-Step: How to Apply for an Indiana SBA Loan

1. Identify Your Needs: Decide your use of funds and preferred SBA loan type.
2. Check Eligibility: The business must operate in Indiana, be for-profit, meet SBA size standards, and demonstrate repayment ability. Startups should have strong personal credit and a business plan.
3. Choose Your Lender: Start with the local or regional banks listed above, or consider Community Development Financial Institutions (CDFIs) if you’re a new or underserved business.
4. Gather Documentation: Prepare 2 years of personal/business tax returns, interim financials, business plan, debt schedule, and collateral info.
5. Complete Application: Use your lender’s online portal or in-person assistance (many Indiana banks now offer virtual consults).
6. Review & Approval: Lender reviews application, requests additional information, and submits for SBA backing.
7. Close & Fund: After approval, you’ll review terms, sign documents, and receive funds to your account.

Indiana Success Stories: SBA Funding in Action

• Evansville Café Expansion: A local coffee shop accessed a $225,000 SBA 7(a) loan from Old National Bank in spring 2025 to launch a second location, adding 8 jobs and tripling monthly revenue.
• Indianapolis Logistics Firm: With a $1.2 million SBA CDC/504 package from First Financial Bank, an established transport company purchased a new warehouse, locking in a 6.55% rate on a 20-year term.
• Fort Wayne Startup: A woman-owned tech business secured $80,000 in SBA Express funds from Huntington National for product development and hiring, repaid over 7 years at 8.0% APR.

Alternatives: Other Top Small Business Loan Products in Indiana

✅ 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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If you need faster funding, less documentation, or don’t qualify for SBA, explore these alternatives:

Working Capital Loans

• Short-term loans, usually $10,000–$500,000
• Terms from 6 to 36 months
• Flexible approval based on cash flow and daily sales; funds available in days
• Lenders: Kabbage, OnDeck, First Internet Bank of Indiana, Regions Bank

Equipment Financing

• For machinery, vehicles, or tech upgrades
• Loan or lease format; equipment serves as collateral
• APR in 2025: Typically 7%–13%
• Lenders: CIT Bank, First Merchants Bank, Bank of America (Indiana branches)

Business Lines of Credit

• Revolving funds up to $250,000 (sometimes more)
• Pay interest only on what you use
• Great for managing cash flow, seasonal needs
• Lenders: Chase, PNC Bank, Advance America (Indiana only)

Tips for Getting Approved in Indiana’s 2025 Climate

• Have a strong business plan and up-to-date financials
• Check your personal and business credit—aim high, but some lenders work with scores as low as 620
• Understand local incentives—some counties offer grants and loan programs for manufacturers, minority-owned, or rural businesses
• Utilize resources from Indiana SBDC for technical assistance and loan prep
• Don’t overlook community banks and credit unions—they know your business environment

Indiana’s Business Loan Resources

• Indiana Small Business Development Center (ISBDC) – Free loan consults, planning, and training
• Indiana Office of Community and Rural Affairs – Grants and loans in rural Indiana
• SBA Indiana District Office – State-specific SBA guidance and programs
• Local Chambers of Commerce – Loan matchmaking and group rates

Conclusion: Secure the Right Funding for Your Indiana Small Business

✅ 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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Indiana entrepreneurs have more options than ever before for business growth in 2025. Whether you need a low-rate SBA loan, quick working capital, or specialized equipment financing, there’s a solution for every stage of your business journey. Compare local lenders, take advantage of state-specific programs, and leverage trusted financial partners to support your vision for success in the Hoosier State.

Ready to get started? Connect with lenders like Lake City Bank, Old National, Centier, or explore the Indiana SBDC for hands-on guidance. Smart financing today can set your business up for long-term growth in Indiana’s dynamic economy.

Get a no obligation quote today. 

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

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