SBA Loans in Indiana: Complete 2025 Guide for Small Businesses
Indiana’s dynamic business environment, low cost of living, and robust workforce make it a prime state for launching and growing small businesses. With changing economic subsidies, upward interest rate trends, and continued post-pandemic recovery, Indiana entrepreneurs look toward government-backed funding to give them a competitive edge. SBA loans remain a critical financing vehicle. This 2025 guide details everything Hoosier business owners need to know about SBA loans in Indiana, including eligibility, top lenders, application steps, and unique local resources.
- SBA Loans in Indiana: Complete 2025 Guide for Small Businesses
- Why Choose SBA Loans in Indiana?
- Types of SBA Loans Available in Indiana (2025)
- Who Qualifies for SBA Loans in Indiana?
- How Indiana Businesses Use SBA Financing (2025 Focus: Business Acquisition)
- Step-by-Step SBA Loan Application Process in Indiana (2025)
- Top 5 SBA Preferred Lenders in Indiana (2025)
- Success Stories: Real Indiana SBA Loan Examples
- Indiana SBA District Office & Local Resources
- Indiana Economic Incentives for Small Businesses
- Frequently Asked Questions about Indiana SBA Loans (2025)
- Ready to Apply? Next Steps for Indiana Entrepreneurs
Why Choose SBA Loans in Indiana?
- Lower down payments (as low as 10%) help conserve cash flow.
- Longer repayment terms (up to 25 years for real estate).
- Competitive interest rates—typically prime + 2.75%–4.75% in 2025.
- Flexible loan uses: working capital, business acquisition, startups, equipment, real estate.
- Government guarantee (up to 85%), improving approval odds.
Types of SBA Loans Available in Indiana (2025)
1. SBA 7(a) Loan Program
The broadest SBA program, ideal for most established businesses. Use for working capital, equipment, business acquisition, startup, or real estate. Indiana lenders commonly finance up to ,000,000.
- Rates (2025): Prime + 2.75%–4.75%
- Down Payment: 10%–20%
- Terms: Up to 10 years (working capital & equipment); 25 years (real estate)
2. SBA 504 Loan Program
Perfect for Indianabased businesses investing in real estate or major equipment. Combine bank/conventional funds, CDC financing, and owner equity.
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DSCR Rental Loan
- No tax returns required
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SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
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- Rates (2025): Fixed, ranging 6.25%–7.1%
- Down Payment: 10% (some start-ups: 15%)
- Terms: 10, 20, or 25 years
3. SBA Microloan Program
For startups or very small enterprises statewide needing up to $50,000. Numerous certified intermediaries exist across Indiana.
- Rates (2025): 7%–10.5%
- Repayment Terms: Up to 6 years
- Down Payment: Flexible
4. SBA Express Loans
Fast approval with loans up to 0,000 for working capital, equipment, or real estate. Indiana’s regional banks often feature 36-hour response times.
- Rates (2025): Prime + 4.5%–6.5%
- Terms: Up to 7 years
5. SBA Export Loan Programs
Hoosier exporters can access Export Express, Export Working Capital, and International Trade loans for $500,000–$5,000,000.
- Rates (2025): Prime + 2%–4.5%
- Flexibility: Working capital, contract fulfillment, expansion abroad.
Who Qualifies for SBA Loans in Indiana?
- For-profit businesses, legally registered in Indiana
- Meet SBA size standards
- Owner(s) with good credit (typically 650+ for 7(a)/504; higher preferred for startups and microloans)
- No recent bankruptcies or defaults on government debt
- Reasonable equity investment (at least 10% for real estate/acquisitions; as little as 5% for some microloans)
- Viable business plan with positive financial projections
Credit requirements: Most Indiana SBA lenders require at least a 650–680 FICO for general loans (7(a)/504). Startups may face stricter thresholds or require additional collateral.
How Indiana Businesses Use SBA Financing (2025 Focus: Business Acquisition)
In 2025, SBA loans have played a substantial role in succession planning and M&A, with many Indiana-based entrepreneurs securing funds to purchase existing businesses as retiring owners seek exit strategies.
- Franchise Resales: Fast-food franchises, fitness centers, and popular Indiana restaurant chains.
- Professional Services: CPA and dental practices, veterinary clinics.
- Mainstreet Businesses: Laundromats, salons, retail locations, manufacturing shops.
Step-by-Step SBA Loan Application Process in Indiana (2025)
- Assess Needs & Loan Type: Decide on acquisition, working capital, or another use.
- Select a Preferred SBA Lender: See Indiana options below.
- Gather Documentation:
- Personal and business tax returns (last 3 years)
- Business financial statements & projections
- Details on acquisition target (for business purchases)
- Business plan
- Owner resumes
- Debt schedule & personal financial statement
- Lender Review: Indiana SBA lenders will pre-qualify and may request additional details.
- Conditional Commitment: If approved, receive an SBA loan offer outlining rates, terms, and conditions.
- Underwriting & SBA Approval: Lender submits the package for SBA guarantee (Prime lenders in Indiana often receive expedited decisions).
- Closing & Funding: After signing, funds are released—direct to the seller in acquisitions.
Top 5 SBA Preferred Lenders in Indiana (2025)
- Huntington National Bank (statewide) – #1 SBA lender in Indiana, strong with business acquisition and 7(a) loans.
- Old National Bank (Evansville, Indianapolis) – 7(a), 504, and Express SBA Preferred Lender; personalized service for acquisitions.
- Lake City Bank (northern Indiana) – Known for manufacturing and professional acquisition lending.
- First Merchants Bank (Muncie, Fort Wayne, Indianapolis) – SBA 7(a), 504, Express; specialty in equipment finance and larger acquisitions.
- Centier Bank (Merrillville, Gary, Valparaiso) – Regional SBA lending focus, fast closing for business purchases.
Always check with your local bank as more Indiana lenders—including Credit Unions—offer SBA products.
Success Stories: Real Indiana SBA Loan Examples
- Dental Practice Acquisition (Carmel, IN) – $785,000 SBA 7(a): Dr. Patel used Huntington National for a 90% LTV loan, acquiring a busy practice with minimal upfront capital. Key: 15-year term, 7.45% rate.
- Main Street Restaurant Purchase (South Bend, IN) – $325,000 SBA 7(a): The new owner leveraged a 7(a) loan from Old National to take over a popular Italian eatery. The deal included working capital, equipment, and real estate via a blended 7(a)/504 structure.
- HVAC Company Buyout (Evansville, IN) – $2.3M SBA 7(a): Partners used a First Merchants Bank 7(a) loan to buy out the retiring owner and invest in new equipment. 10% down, 10-year term.
- Childcare Franchise Startup (Fort Wayne, IN) – $48,000 Microloan: An aspiring entrepreneur secured an Indiana microloan to launch a licensed in-home daycare, covering licensing, supplies, and marketing.
Indiana SBA District Office & Local Resources
- SBA Indiana District Office: 8500 Keystone Crossing, Suite 400, Indianapolis, IN 46240. Website | (317) 226-7272
- Small Business Development Centers (ISBDC): 10 centers across Indiana for free consulting & business planning. Visit ISBDC
- Indiana SCORE Chapters: Free local business mentoring – Indianapolis, Evansville, South Bend, and more.
Indiana Economic Incentives for Small Businesses
The state offers many business-friendly tax credits, grant programs, and workforce training support—which can be combined with SBA financing in 2025.
- Hoosier Business Investment (HBI) Tax Credit: Offsets capital investment for job-creating businesses.
- Next Level Jobs Program: Workforce training funding for high-growth sectors.
- Indiana Venture Capital Investment Tax Credit: Boosts access to equity funding alongside SBA loans.
- Local city/county grants and incentives: Especially for downtown revitalization, minority/women-owned startups, and green energy initiatives.
Frequently Asked Questions about Indiana SBA Loans (2025)
- How much down payment do I need for an SBA acquisition loan?
- Most Indiana lenders require 10% down for business purchases; startups/pure asset sales may require 15–20%.
- How fast can my deal close?
- Standard 7(a) deals: 45–60 days. SBA Express: sometimes under 2 weeks. Preparation is key for speed.
- Can I get SBA financing as a minority or female entrepreneur?
- Yes, including special programs with local SBDCs, microloan intermediaries, and city/municipal support.
Ready to Apply? Next Steps for Indiana Entrepreneurs
- Prepare your business plan & financials—use ISBDC & SCORE advisors for guidance.
- Contact several Indiana SBA Preferred Lenders to compare specific rates and terms.
- Explore state/local grant and incentive options to complement financing.
- Engage with your local SBA District Office for support through every stage.
With the right Indiana SBA lender and business plan, your business acquisition or growth vision is within reach—no matter the scale. 2025 is poised for savvy small business buyers to succeed!
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Use these trusted resources to grow and manage your small business—then connect with GHC Funding
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GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans,
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