SBA Loans in Indiana for Small Businesses in 2025 Now

SBA Loans in Indiana: Complete 2025 Guide for Small Businesses

Small businesses are the engine of Indiana’s economy, employing nearly half the state’s private workforce. In 2025, federal and state support for entrepreneurship is stronger than ever—SBA loans remain a vital resource for Indiana companies seeking affordable financing. This comprehensive guide covers everything Hoosier businesses need to know to secure SBA-backed capital, including updated loan programs, real rates, eligibility, top Indiana lenders, and local incentives.

Why Indiana Small Businesses Choose SBA Loans

• Low Down Payments: As little as 10% down for many SBA loans, freeing up valuable cash for growth.
• Longer Terms: Repayment periods up to 25 years for commercial real estate; 10 years for working capital.
• Competitive Interest Rates: Governed by SBA guidelines (prime + allowable spread).
• Flexible Use of Funds: From startups and acquisitions to equipment and expansion.
• Government Guarantee: Reduces lender risk, expanding credit access.

Indiana SBA Loan Programs in 2025

The SBA partners with Indiana banks, credit unions, and certified development companies to offer several core loan programs, each tailored to specific business stages and needs.

1. SBA 7(a) Loans

The 7(a) is SBA’s most popular and flexible program in Indiana:

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.

Start Quiz

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).

Page 2 of 5

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.

Page 3 of 5

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

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

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.

Start Quiz

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.

Page 2 of 5

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.

Page 3 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

• Amount: Up to $5 million
• Uses: Startups, working capital, equipment, business acquisitions, real estate
• Down Payment: Typically 10% (sometimes higher for startups/acquisitions)
• Rates (2025): Prime + 2.75% to 3.5% (variable); currently, 10.5%–11.25%
• Terms: Up to 10 years (working capital); up to 25 years (real estate)

2. SBA 504 Loans

Perfect for Indiana businesses purchasing commercial real estate or major equipment:

• Amount: Up to $5.5 million for qualifying projects
• Down Payment: As low as 10%
• Structure: 50% bank, 40% Indiana CDC, 10% borrower
• Fixed Rates (2025): 6.7%–7.5%, 20–25 year terms
• Uses: Facility purchase/construction, heavy machinery, energy efficiency projects

3. SBA Microloans

Supporting Indiana’s smallest businesses and startups:

• Amount: Up to $50,000 (average is $15,000–$25,000 in Indiana)
• Rates (2025): 8%–11%
• Terms: Up to 6 years
• Uses: Working capital, supplies, inventory, equipment

4. SBA Express Loans

✅ 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.

Start Quiz

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.

Page 2 of 5

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.

Page 3 of 5

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%

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Speedy approval for smaller loans, ideal for working capital or emergencies:

• Amount: Up to $500,000
• Decision: In as few as 36 hours
• Rates: Prime + up to 6.5%
• Government Guarantee: 50%

5. SBA Export Loans

✅ 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!

Start Quiz

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

Page 2 of 3

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

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Indiana exports are strong—these loans support businesses selling abroad:

• Export Express: Up to $500,000
• Export Working Capital: Up to $5 million
• International Trade Loans: Up to $5 million

Qualifying for SBA Loans in Indiana (2025)

• Business Size: Must be classified as “small” per SBA standards (SBA Size Standards).
• Credit Score: Minimum 670 for most lenders; 680+ preferred.
• Down Payment: 10% minimum for most 7(a)/504 loans.
• Time in Business: 2+ years for standard 7(a)/504; startups eligible with strong business plan and collateral.
• Collateral: Not always required for smaller loans, but may be needed for larger sums.
• No Delinquent Federal Debt: Tax and student loan issues may disqualify.
• Cash Flow: Sufficient to cover debt payments; lenders require financial statements or projections.

Indiana’s SBA Preferred Lenders (PLP) in 2025

These top lenders combine experience with streamlined processing:

1. Old National Bank (Evansville HQ) – Statewide growth lender, deep SBA experience.
2. Lake City Bank (Warsaw) – Strong in northern Indiana, flexible with startups and acquisitions.
3. First Internet Bank (Fishers) – Indiana online bank with national footprint, rapid SBA approvals.
4. Centier Bank (Merrillville) – Family-owned; custom solutions for Indiana business needs.
5. PNC Bank (major presence in Indiana) – Broad SBA offerings, from real estate to working capital.

Tip: Many local credit unions and CDCs (Certified Development Companies) also process 504 loans throughout the state.

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

1. Prepare your business: Build/update your business plan, assemble recent tax returns, financial statements, ownership documents, and detail loan purpose.
2. Check your credit and eligibility: Address any credit issues or tax liens; verify industry meets SBA criteria.
3. Find an Indiana SBA Preferred Lender: Consult with local banks, CDCs, or SBA resource partners for lender fit.
4. Complete the SBA loan application: Including SBA Form 1919, financial projections, management resumes, use of funds, collateral list.
5. Lender review and underwriting: Lender evaluates credit, financials, business feasibility, and collateral.
6. SBA loan guarantee process: Lender submits for SBA guarantee approval (PLP lenders have expedited systems).
7. Loan closing and funding: After signing agreements, funds are disbursed direct to borrower or seller (for purchase/acquisition); closing can range 30–90 days depending on loan type.

Success Stories: Indiana Businesses & SBA Loans

• Startup Growth: Evansville Eats, a catering and meal kit startup, secured a $70,000 SBA Microloan via Flagship Enterprise Center, funding equipment and initial inventory in 2024. The business expanded to serve regional events and reduced food insecurity through community partnerships.
• Business Acquisition: In Carmel, a young entrepreneur acquired a $550,000 dog grooming salon with an SBA 7(a) loan from Old National Bank, putting just 15% down. The acquisition preserved 11 local jobs and doubled sales in Year 1.
• Commercial Real Estate: In Terre Haute, a local manufacturer utilized a $1.8 million SBA 504 Loan (Lake City Bank & Indiana Statewide CDC) to purchase and renovate a 25,000 sq ft facility, securing fixed payments and reducing overhead.
• Equipment Financing: A Fort Wayne auto shop obtained a $210,000 SBA Express Loan from Centier Bank to upgrade diagnostic equipment and hire two new technicians.
• Export Expansion: An Indianapolis-based medtech exporter leveraged an SBA Export Working Capital loan of $950,000 to fulfill EU contracts, boosting international sales by 40%.

Indiana SBA District Office & Local Resources

• SBA Indiana District Office
  8500 Keystone Crossing, Suite 400, Indianapolis, IN 46240
  Phone: (317) 226-7272
  Website: sba.gov/offices/district/in/indianapolis
• Indiana Small Business Development Center (ISBDC): Free business consulting and loan packaging help statewide.
• SCORE Indiana: Mentoring and training for new and established businesses (multiple chapters statewide).
• Flagship Enterprise Center: Indiana’s leading SBA microloan intermediary, startup incubator, and lending resource.

2025 SBA Loan Rate & Program Updates

• Maximum 7(a) loan amount remains $5 million; Express Loans expanded to $500,000 cap.
• SBA has streamlined digital application portals for faster document uploads and approvals in 2025.
• SBA 504 refinance with cash out available for debt consolidation and facility improvements.
• 504 rates are fixed, providing payment certainty vs potential Fed rate hikes.

Indiana State-Specific Incentives & Economic Development

• Indiana EDGE Tax Credit: Payroll tax credits for businesses creating quality jobs in the state.
• Hoosier Business Investment Tax Credit (HBITC): Supports capital investment for Indiana businesses.
• Next Level Jobs Indiana: Grants to help businesses train and recruit qualified employees.
• Local city/county incentives: Many Indiana cities offer additional property tax abatements or low-cost financing for expansion and equipment purchases.

Frequently Asked Questions

Can startups get SBA loans in Indiana in 2025?

Yes, with a strong business plan and credit score. Microloans and 7(a)s are common choices for startups.

How long does SBA loan approval take in Indiana?

Express loans: as few as 36–72 hours. Standard 7(a) and 504 loans: 30–90 days, depending on lender and paperwork.

Do Indiana lenders require collateral?

It varies. Smaller loans often don’t, but larger loans and startups may need business/hard asset collateral or personal guarantees.

Get Started: Connect with an Indiana SBA Lender

Now’s the time to leverage SBA financing for your next business purchase, facility, or expansion. Start by connecting with an Indiana-based SBA Preferred Lender, or reach out to your local ISBDC or SBA office for personalized guidance and support. With the right capital, your business can thrive in Indiana’s welcoming, growth-minded market.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

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

See Full Bio

DSCR LOAN SBA LOAN BRIDGE LOAN