SBA Loans in Indiana for 2025 Small Businesses Now

SBA Loans in Indiana: Complete 2025 Guide for Small Businesses

Indiana’s robust business environment, growing tech sector, and strategic Midwest location make it an outstanding place for entrepreneurs and established companies alike. For 2025, Indiana small businesses continue to benefit from the Small Business Administration (SBA) loan programs, offering government-backed financing with historically low interest rates, extended terms, and flexible requirements.

2025 SBA Loan Programs Available in Indiana

Whether you’re starting a business, acquiring an existing company, buying commercial real estate, expanding working capital, or purchasing equipment, Indiana businesses can leverage several SBA loan products:

• SBA 7(a) Loans: The flagship product, ideal for diverse purposes—working capital, business acquisition, equipment, and more.
• SBA 504 Loans: Designed for commercial real estate purchases and major fixed-asset investments.
• SBA Microloans: Small loans up to $50,000, perfect for startups and microbusinesses.
• SBA Express Loans: Streamlined process, up to $500,000.
• SBA Export Loans: For Indiana companies involved in global commerce.

Current 2025 SBA Loan Rates & Terms

• 7(a) Loans: Rates typically range from Prime + 2.25% to Prime + 2.75%. Terms: up to 10 years (working capital) and 25 years (real estate).
• 504 Loans: Fixed rates (generally 6.2–6.8% in 2025), terms up to 25 years.
• Microloans: Rates set by nonprofit lenders, often 8–11%. Terms up to 6 years.
• Express Loans: Interest rates up to Prime + 4.75%. Terms up to 7 years.
• Export Loans: Similar to 7(a) and Express rate structure, designed for exporters.

Indiana SBA Loan Qualification Requirements

• Business must operate in Indiana and be a for-profit entity.
• Acceptable credit (FICO SBSS usually 155+, personal credit 650+ preferred).
• Down payment: Most 7(a) and 504 loans require 10%–20%. Startups & business acquisition may need slightly higher down payments.
• Time in business: Startups are eligible for 7(a), Microloans, and some Express loans. Existing businesses should have 12+ months of revenue.
• No recent bankruptcies or defaulted federal debt.
• Collateral: Required above $25,000 (7(a)) and $350,000 (Express), but loans may be approved without full collateralization if cashflow supports repayment.
• Owner guarantee: 20%+ owners must personally guarantee.

Top SBA Preferred Lenders in Indiana (2025)

• Old National Bank – Headquartered in Evansville and a leading SBA lender statewide.
• Lake City Bank – Servicing small businesses across northern and central Indiana.
• Huntington National Bank – A major player for SBA 7(a), Express, and 504 loans.
• Centier Bank – Known for personalized service and flexible lending solutions.
• First Financial Bank – Specializing in small and medium business lending throughout Indiana.
• Bankable (Flagship Enterprise Center) – A trusted Indiana SBA Microloan intermediary.

Step-by-Step: How to Apply for an SBA Loan in Indiana (2025)

1. Determine Your Financing Needs: Clarify your loan purpose: startup, acquisition, equipment, real estate, or working capital.
2. Check Eligibility: Review the criteria for your chosen SBA program—credit score, business status, down payment, and collateral.
3. Select a Lender: Contact Indiana-based preferred SBA lenders (see above). Consult with several to compare terms and responsiveness.
4. Gather Documentation:
   • Business plan, 2–3 years of financials (or projections for startups)
   • Tax returns (personal & business)
   • Personal financial statement
   • Proof of equity injection (down payment)
   • Business licenses, leases, contracts
5. Lender Review: Your lender completes underwriting and submits for SBA guarantee approval.
6. Approval & Closing: Upon SBA approval, sign loan documents, meet insurance/bonding requirements, and receive funds.

Indiana SBA Loan Success Stories

• Business Acquisition: Green Apple Childcare (Indianapolis) secured a $580,000 SBA 7(a) loan through Huntington National Bank to purchase a multi-site daycare operation—creating 18 new jobs within 12 months.
• Commercial Real Estate: Hoosier Dental Group (Lafayette) used a $1.1M SBA 504 loan package from Lake City Bank to buy and renovate a downtown office space, fixing overhead expenses at a competitive 6.4% rate.
• Startup Financing: Copper Mug Café (Terre Haute) launched via a $32,000 microloan from Bankable, supporting everything from espresso equipment to local marketing hires.
• Equipment Financing: Summit Manufacturing (Fort Wayne) obtained a $320,000 SBA 7(a) loan for advanced CNC machinery, allowing them to win new contracts and double revenue within 18 months.
• Working Capital: Pioneer Tech Solutions (Bloomington) used a $250,000 SBA Express Loan through Centier Bank for payroll, software subscriptions, and inventory expansion as new contracts ramped up in 2024–2025.

Indiana SBA District Offices & Resources

• SBA Indiana District Office (Indianapolis):
  8500 Keystone Crossing, Suite 400, Indianapolis, IN 46240
  Phone: (317) 226-7272
  Website: sba.gov/indiana
• Small Business Development Centers (ISBDC): Free business advising, planning, and funding guidance – isbdc.org
• SCORE Central Indiana: Free mentoring from experienced business professionals – SCORE Central Indiana
• Procurement Technical Assistance Centers (PTAC): Help Indiana businesses pursue government contracts.

Why Choose SBA Loans in Indiana?

• Low Down Payments: As little as 10% for real estate and business acquisition.
• Longer Repayment Terms: Up to 25 years for real estate and equipment.
• Competitive, Capped Interest Rates: SBA sets maximum spreads over Prime.
• Flexible Use of Funds: Especially for SBA 7(a) loans, applicable to most legitimate business needs.
• No Balloon Payments: Predictable monthly costs for easier cash flow management.
• Government Guarantee: Reduces lender risk, making it easier to get funded even if you lack perfect collateral or a long business history.

Indiana Business Incentives & Economic Development Programs (2025)

• Indiana Economic Development Corporation (IEDC): Offers grants, workforce training incentives, and tax credits for job creation and capital investment—visit iedc.in.gov.
• Hoosier Business Investment Tax Credit (HBITC): For equipment and facility investments by Indiana businesses.
• Venture Capital Investment Tax Credit: Supports Indiana-based startups raising outside capital.
• EDGE Tax Credit: For job-generating projects relocating or expanding in Indiana.
• State and Local Enterprise Zones: Tax benefits for new or expanding businesses in targeted urban/rural zones.

2025 SBA Program Updates Affecting Indiana Borrowers

• Higher Maximum SBA Express Loan Amounts: Still $500,000 for 2025, with responsive two-day turnaround on most Indiana applications.
• Streamlined Review for Loans Under $500,000: Quicker approvals, less documentation for working capital and equipment.
• Expanded Export Working Capital Loans: Ideal for Indiana’s logistics, manufacturing, and ag-tech exporters.
• Digital Application Portals: Most top Indiana SBA lenders now support online prequalification and document submission—boosting speed and convenience.

Getting Started: Connect with Indiana SBA Experts

Successful SBA lending in Indiana hinges on smart planning and strong partnerships. Connect with local banks, SBDCs, SCORE mentors, and the SBA Indiana District Office early in your business journey for the best results. Whether you’re launching, growing, or acquiring a business, 2025 offers an ideal SBA lending environment with Indiana’s most motivated lenders.

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

This guide equips Indiana entrepreneurs with all you need to pursue SBA loans in 2025. From startup dreams to major acquisitions or real estate purchases, local resources and SBA lenders are ready to help you build your business future.

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