SBA Loans in Indiana for Small Businesses 2025 Now

SBA Loans in Indiana: Your 2025 Comprehensive Guide

Securing funding is essential for small business growth in Indiana, whether you’re starting out, expanding operations, or upgrading equipment. The U.S. Small Business Administration (SBA) offers a suite of government-backed loan programs tailored for Indiana entrepreneurs in 2025. This comprehensive guide covers types of SBA loans, updated eligibility, how to apply, and state-specific resources to help your Indiana small business thrive.

Why Choose SBA Loans in Indiana?

• Lower down payments: As low as 10-15% depending on the program
• Flexible use of funds: Startups, real estate, equipment, acquisitions, working capital, and more
• Longer repayment terms: Up to 25 years for real estate; up to 10 years for working capital
• Competitive interest rates: 2025 SBA 7(a) rates start from Prime + 2-3.75%
• Government guarantee: Up to 85% backed by the SBA, increasing lender confidence

Types of SBA Loans Available in Indiana (2025)

1. SBA 7(a) Loans

• Best for: Broad uses – startups, expansions, working capital, equipment, business purchases
• Maximum Amount: $5 million
• Interest Rates: Prime + 2.25%–4.75% (subject to 2025 market rates)
• Terms: Up to 10 years (working capital); up to 25 years (real estate)
• Down Payment: As low as 10%

2. SBA 504 Loans

• Best for: Commercial real estate, major fixed-asset purchases
• Maximum Amount: Typically up to $5.5 million (some exceptions higher)
• Interest Rates: Fixed rates, generally 5.85%–7.25% (June 2025)
• Terms: 10, 20, or 25 years
• Down Payment: 10% (can be higher for startups or specialized properties)

3. SBA Microloans

• Best for: Early-stage startups, very small businesses, working capital, equipment
• Maximum Amount: $50,000 (Indiana typical average about $19,000)
• Interest Rates: 6.5%–9.5%
• Terms: Up to 7 years
• Down Payment: Often none or minimal

4. SBA Express Loans

• Best for: Quick working capital, smaller equipment needs (startups, rapid expansions)
• Maximum Amount: $500,000 (updated 2025 limits)
• Approval Time: As fast as 36 hours for decision
• Interest Rates: Prime + 4.5%–6.5%

5. SBA Export Loans

• Best for: Indiana-based exporters, international trade capital
• Options: Export Express, Export Working Capital, International Trade Loans
• Maximum Amount: Up to $5 million

Who Qualifies for an SBA Loan in Indiana?

• A for-profit business, registered and operating in Indiana
• Meet the SBA’s size standards (generally under 500 employees or $7.5M in annual revenue; varies by industry)
• Good credit (typically 660+ for 7(a)/504; Microloans may be lower)
• Demonstrated ability to repay the loan
• Personal investment (down payment or equity injection)
• No delinquent federal debts or recent bankruptcies

Top 2025 SBA Preferred Lenders in Indiana

Work with these experienced SBA lenders to speed up your application process:

1. Lake City Bank – Indiana-based and a perennial top SBA lender, specializing in 7(a) and 504 loans for Indiana businesses statewide.
2. Centier Bank – Headquartered in Merrillville, Centier focuses on helping small manufacturers, restaurants, and service providers.
3. Horizon Bank – Offers streamlined SBA 7(a) and 504 loans for acquisitions, expansions, and real estate.
4. Old National Bank – Indiana’s largest headquartered bank, known for complex SBA financing including business acquisition and succession deals.
5. 1st Source Bank – Especially strong at SBA Express and Microloan programs, supporting startups and rural businesses.

Tip: Many national lenders, such as Huntington National Bank and PNC, also serve Indiana small businesses with robust SBA loan departments.

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.

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.

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

1. Assess your needs: Determine loan amount and purpose—working capital, startup, real estate, equipment, or acquisition.
2. Check eligibility: Review SBA and lender requirements (credit, collateral, business plan, cash flow).
3. Prepare documentation:
   • 3 years of personal and business tax returns (if applicable)
   • Current financial statements
   • Personal financial statement
   • Business plan (especially for startups/acquisitions)
   • Articles of incorporation, leases, contracts, licenses
4. Contact an SBA lender: Choose a preferred lender and schedule an initial consultation (online, in-person, or by phone).
5. Complete lender application: Work with the lender—many programs now offer digital application tools.
6. Credit/background review: Lender checks credit, SBA form 1919 (borrower info), and personal history.
7. Receive approval & SBA guarantee: Lender submits to SBA for guarantee. Expect 3-6 weeks for 7(a); 1-2 weeks for Express; 2-3 months for 504.
8. Loan closing & disbursement: Sign final documents, provide any last documentation, and receive funds directly.

Indiana SBA Loan Success Stories (2025)

Startup Financing (Focus):

• Bright Future Early Learning Center – Indianapolis: Secured a $275,000 SBA 7(a) loan from Lake City Bank to launch a daycare and preschool, covering leasehold improvements, startup salaries, and equipment. The founder qualified with a 685 credit score and a $40K equity injection.
• Route 33 Coffee – Fort Wayne: Received a $47,500 SBA Microloan through 1st Source Bank, helping two young entrepreneurs launch a new coffee shop and cover their initial inventory, branding, and equipment costs.
• Agri-Pros AgTech – West Lafayette: Rome-based SBA 504 financing of $730,000 with Centier Bank to purchase a commercial flex-space for a startup developing agricultural drones, leveraging Indiana’s 10% down payment incentives for technology businesses.

Additional Indiana Successes:

• Heartland Motorsports – Terre Haute: $3.6 million SBA 504 loan package for purchasing land and constructing a motorsports facility, in partnership with Horizon Bank and Indiana Statewide CDC.
• Midwest Family Dental – Evansville: $425,000 SBA 7(a) loan with Old National Bank for business acquisition. The new owner had industry experience and contributed a 15% down payment.

Indiana SBA District Offices and Resources

Indiana businesses have direct support via:

• SBA Indiana District Office
  8500 Keystone Crossing, Suite 400, Indianapolis, IN 46240
  Phone: (317) 226-7272
  Website
• SCORE Indiana: Free business mentoring (score.org)
• Indiana Small Business Development Center (ISBDC): Guidance, training, market research (isbdc.org)
• Local Women’s Business Centers / Indiana Black Expo: Targeted resources for minority and women-owned startups and businesses.

Indiana Economic Development & Incentives

• EDGE Tax Credits: Incentives for businesses creating jobs in Indiana
• Next Level Jobs (NLJ) Program: Grants and training funds for employee upskilling
• Enterprise Zone Benefits: Tax abatements for businesses in designated areas
• Venture Capital Investment (VCI) Credit: Tax credits for qualified investors in Indiana startups

FAQs: Indiana SBA Loans in 2025

What is the minimum credit score for SBA loans in Indiana?

Most lenders require 660+ for 7(a)/504; microloans or Express may accommodate lower scores with strong cash flow or collateral.

How much do I need as a down payment?

Generally, 10-20% for most programs. Startups may require higher equity injection or additional collateral.

Can startups get SBA loans in Indiana?

Yes, especially with a strong business plan and personal investment. The 7(a) and Microloan programs are popular for Indiana startups.

2025 Outlook for SBA Lending in Indiana

With Indiana’s steady job growth, pro-business tax climate, and strategic logistics location, 2025 is expected to see continued strong demand for SBA financing across manufacturing, healthcare, logistics, food service, tech startups, and retail sectors. Interest rates remain competitive, while application standards reflect prudent underwriting.

Get Started with Your Indiana SBA Loan Today

✅ 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.

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.

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From launching a new venture to expanding facilities or acquiring equipment, Indiana’s top SBA lenders and statewide resources can support your capital needs in 2025. Reach out to a preferred lender, attend a free workshop at the Indiana SBA District Office, or contact the ISBDC to maximize your SBA loan success.

Get a No Obligation Quote Today.

✅ 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

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

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GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

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

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