SBA Loans in Indiana for Small Businesses 2025 Now

SBA Loans in Indiana: 2025 Complete Guide for Small Businesses

Securing suitable financing is essential for growth-minded Indiana businesses. SBA loans remain a vital avenue, offering attractive terms, government backing, and broad eligibility—including for startup ventures. This 2025 guide breaks down Indiana SBA loan programs: 7(a), 504, Microloans, Express, and Export loans. Explore qualification requirements, lender options, the step-by-step process, and local incentives for Indiana’s entrepreneurs and founders.

Why SBA Loans Are Powerful for Indiana Business

• Low down payments—as little as 10%
• Long repayment terms—up to 25 years for real estate
• Competitive interest rates—capped by the SBA
• Flexible purposes: start up, acquire, expand, refinance, purchase equipment, or real estate
• Government-backed—improves approval odds, especially for new businesses

Types of SBA Loans Available in Indiana (2025)

1. SBA 7(a) Loan Program

• Maximum Amount: $5 million
• Typical Terms: 10–25 years, rates 11–13.5% (2025 estimate)
• Uses: Working capital, equipment, business acquisition, real estate, refinancing
• Ideal For: Startups, established businesses, acquisition financing

2. SBA 504 Loan Program

• Maximum Amount: $5.5 million (portion)
• Typical Terms: 10, 20, or 25 years, rates fixed ~7.2% (2025 est.)
• Uses: Owner-occupied real estate, major equipment
• Ideal For: Commercial real estate and equipment purchases

3. SBA Microloans

• Maximum Amount: $50,000
• Typical Terms: Up to 6 years, rates 8–12%
• Uses: Working capital, inventory, startup expenses, supplies
• Ideal For: Startups, small home-based businesses

4. SBA Express Loans

• Maximum Amount: $500,000
• Typical Terms: Up to 10 years, faster decisions (36 hours)
• Uses: Working capital, equipment, expansion

5. SBA Export Loans

• Maximum Amount: $5 million
• Uses: Businesses expanding internationally: working capital, inventory, export development

Who Qualifies for SBA Loans in Indiana?

Most for-profit businesses located in Indiana can qualify. Key eligibility requirements include:

• Meet SBA size standards (generally under 500 employees)
• Operate legally within Indiana
• Owner investment of time and equity
• No delinquency on federal debt

Credit & Down Payment

• Minimum personal credit score: Typically 650-680+
• Down payment: 10–20% (lower for strong candidates)
• Strong business plan, especially for startups

Top Indiana SBA Preferred Lenders (PLP) in 2025

Working with a PLP streamlines approval. Leading Indiana SBA lenders include:

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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1. Lake City Bank (Indiana-based, #1 SBA lender by volume)
2. Fifth Third Bank (Major Midwest presence)
3. Old National Bank (Indiana’s largest hometown bank)
4. KeyBank (Experienced 504, 7(a) lender across the state)
5. Horizon Bank (Strong in Northern Indiana/South Bend region)
6. Live Oak Bank (National SBA specialist, Indiana active)

Step-by-Step Indiana SBA Loan Application Process (2025)

1. Develop a robust business plan with financial projections.
2. Determine needed loan type and eligible uses (e.g. acquisition, startup-scaling, equipment purchase).
3. Gather required documentation:
   • Personal and business tax returns (2-3 years)
   • Personal financial statement
   • Business debt schedule, existing financials
   • Driver’s license/ID, entity documents
4. Choose a preferred Indiana SBA lender; schedule a pre-application consultation.
5. Fill out SBA Form 1919 (borrower info) and lender application.
6. Lender reviews file, underwrites, and presents to SBA for guarantee approval (1–3 weeks, Express: 36 hours).
7. If approved: Sign closing documents, fund loan, implement business plan/growth initiative!

Indiana SBA Success Stories (2025)

• Startup Bakery – Indianapolis: A local baker secured $75,000 SBA Microloan from Old National Bank to cover equipment and opening costs, launching their shop in 2024 and already profitable by 2025.
• Manufacturing Equipment Expansion – Fort Wayne: A third-generation metalworks firm locked in $1.2 million 504 loan through Lake City Bank, acquiring modern CNC equipment and hiring 8 new employees.
• Business Acquisition – Bloomington: A local engineer bought a specialty HVAC service company with a $480,000 SBA 7(a) loan via Fifth Third Bank (15% down for first-time buyer).
• Export Working Capital – Evansville: Small ag-tech distributor accessed a $300,000 SBA export loan to fulfill Canadian purchase orders, achieving 20% international sales growth in 2025.

Indiana SBA District Office & Local Resources

• SBA Indiana District Office: 8500 Keystone Crossing, Suite 400, Indianapolis, IN 46240
• Phone: (317) 226-7272
• Official SBA Indiana resources
• Local Small Business Development Center network: Free one-on-one startup and loan application coaching (ISBDC)
• Indiana Chamber of Commerce: Guidance, workshops, advocacy

State-Specific Incentives & Business Growth Programs (Indiana, 2025)

Indiana supports small business growth with targeted incentives:

• EDGE Tax Credits: For Indiana job creation
• SEED Innovation Grants: Up to $50,000 for startup R&D
• Hoosier Business Investment (HBI) Tax Credit
• Indiana Economic Development Corporation: Full database of 2025 programs

2025 SBA Loan Rate & Program Updates

SBA rates shifted higher in early 2024, but remain below most conventional commercial loan options. As of Q1 2025:

• SBA 7(a): Prime rate + 2.75–4.75% (total 11–13.5%)
• 504 loans: Long-term fixed rates, typically 7.2–7.8%
• Maximum loan amounts and guarantee limits unchanged for 2025
• SBA continues to prioritize support for underserved and rural Indiana communities

Expert Tips for Indiana Businesses Seeking SBA Loans

• Document management: Organized, digital-ready paperwork speeds approval.
• Startups: Include detailed cash flow projections and personal resumes.
• Consider state incentives: Loan + grant or credit can accelerate post-funding growth.
• Discuss with a local SBDC advisor: Free help increases your success rate.

Next Steps: How to Unlock Indiana SBA Financing in 2025

1. Review your business needs—startup capital, acquisition, or expansion?
2. Consult Indiana’s SBA-Preferred lenders for tailored guidance.
3. Prepare a compelling, SBA-friendly business plan.
4. Apply early to capture 2025 rate and incentive advantages!

✅ 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’s growth-focused climate, combined with powerful SBA lending, makes 2025 an ideal year to secure funding. With planning and the right lender, your small business can access capital for everything from launch to large-scale expansion.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

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

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