SBA Loans in Indiana: Complete 2025 Guide for Small Businesses
Small businesses are the engine of Indiana’s economy, from high-tech firms in Indianapolis and Biotech companies in Bloomington to Main Street retailers in Evansville. In 2025, access to affordable financing is more crucial than ever as businesses seek to expand, recover, or launch. SBA loans remain one of the most attractive options for Indiana entrepreneurs due to their flexible terms, low down payments, and competitive rates. This comprehensive guide covers everything you need to know about obtaining an SBA loan in Indiana in 2025, including loan types, eligibility, area-specific lenders, and success strategies for Hoosier businesses.
- SBA Loans in Indiana: Complete 2025 Guide for Small Businesses
- Why Choose SBA Loans in Indiana?
- 2025 SBA Loan Programs Available in Indiana
- SBA 7(a) Loans: Indiana’s Most Popular Option for Business Acquisition
- SBA 504 Loans: For Commercial Real Estate & Equipment
- SBA Microloans: Launching Indiana Startups
- SBA Express Loans: Faster Access for Hoosier Businesses
- SBA Export Loans
- Indiana SBA Preferred Lenders in 2025
- How to Get an SBA Loan in Indiana: Step-by-Step
- Success Stories: Indiana Businesses Using SBA Loans in 2025
- Indiana SBA District Office & State Resources
- Indiana Business Incentives & Development Programs (2025)
- Conclusion: Take the Next Step with SBA Financing in Indiana
Why Choose SBA Loans in Indiana?
- Low down payments: Typically 10% or lower, easing startup and growth costs
- Government-backed: Reduces bank risk, making financing more accessible
- Longer repayment terms: Stretch payments over 7-25 years, improving cash flow
- Competitive fixed/variable rates: Often lower than conventional loans in 2025 (6.25%-8.75% range)
- Wide use of funds: Including startups, working capital, equipment, real estate, acquisitions, and exports
2025 SBA Loan Programs Available in Indiana
- SBA 7(a) Loans – Versatile, up to $5M. Use for working capital, startups, equipment, business acquisition, debt refinance.
- SBA 504 Loans – Up to $5.5M, ideal for commercial real estate purchases, expansions, and equipment financing.
- SBA Microloans – Up to $50,000 for startups, home-based, and underserved businesses.
- SBA Express Loans – Up to $500,000 for urgent working capital needs with fast turnaround.
- SBA Export Loans – Help Indiana businesses access international markets.
SBA 7(a) Loans: Indiana’s Most Popular Option for Business Acquisition
Focus for Indiana 2025: Business Acquisition
The SBA 7(a) program is the leading choice for Indiana entrepreneurs looking to purchase existing businesses. Whether buying a family-owned restaurant in Fort Wayne or acquiring a manufacturing firm in Gary, the 7(a) offers flexible use and terms tailored for business transitions.
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GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
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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- Loan Amount: Up to $5 million
- Terms: Up to 10 years for acquisitions, 25 years for real estate
- Interest Rates (2025): Prime + 2.75%-4.5% (approx. 7.75%-9.5% typical)
- Down Payment (For Acquisitions): 10% of purchase price (can be partially seller-financed)
Qualifications:
- Business or acquisition must operate in Indiana (or main revenue within the state)
- Minimum 2 years of profitable operations for acquired business
- Buyers typically need FICO 680+
- 10%-20% buyer equity injection
- Personal guarantees from owners with 20%+ stake
SBA 504 Loans: For Commercial Real Estate & Equipment
- Loan Amount: Up to $5.5 million (up to 90% LTV financing)
- Terms: 10, 20, or 25 years
- Fixed Rates (2025): 6.15%-7.1% typical
- Down Payment: Generally 10% for most projects
The SBA 504 is favored by Indiana manufacturers, warehouses, logistics hubs, and medical practices aiming to purchase or build facilities. It’s also ideal for heavy equipment financing.
SBA Microloans: Launching Indiana Startups
- Loan Amount: Up to $50,000 ($14,000 average in Indiana, 2025)
- Terms: Up to 7 years
- Rates: 7.5%-9.0% typical in 2025
Nonprofit lenders provide microloans to Indiana startups, women-, and minority-owned businesses, and rural ventures. Use funds for supplies, working capital, inventory, or equipment.
SBA Express Loans: Faster Access for Hoosier Businesses
- Loan Amount: Up to $500,000
- Approval Time: As quick as 36 hours
- Terms: 7 years for lines of credit; up to 10 years for term loans
- Interest Rates: Prime + 4.5%-6.5%
Suited for urgent working capital needs—restaurant inventory, payroll, or equipment repairs.
SBA Export Loans
Indiana exporters can use SBA export programs for international working capital, receivable financing, and contract fulfillment. Loans up to $5 million are available for eligible businesses engaged in foreign sales.
Indiana SBA Preferred Lenders in 2025
These experienced Indiana lenders expedite SBA approvals and understand local business dynamics:
- Old National Bank (Evansville) – Leading SBA lender with state-focused staff; specializes in acquisition and CRE deals.
- Lake City Bank (Warsaw) – Renowned for manufacturing, healthcare, and agri-business lending.
- 1st Source Bank (South Bend) – Excellent for SBA 7(a) and 504 loans, business banking relationships.
- Horizon Bank (Michigan City) – Strong SBA Preferred Lender with expedited decision-making.
- PNC Bank (Statewide) – National lender with streamlined SBA process, digital applications, and wide product suite.
How to Get an SBA Loan in Indiana: Step-by-Step
- Assess Your Needs: Define how much you need (by type: acquisition, real estate, working capital, startup) and intended use of funds.
- Check Eligibility: Indiana businesses must be for-profit, under SBA size limits, and demonstrate repayment ability. Owners should have minimum 10%-20% equity for acquisition/real estate.
- Prepare Documents:
- Business plan & financial projections
- 3 years tax returns (personal and business, if existing)
- Purchase agreement (for acquisitions)
- Personal financial statement (SBA Form 413)
- Credit reports (FICO 650 or higher preferred)
- Organizational documents (EIN, articles, licenses)
- Collateral documentation (if applicable)
- Select a Preferred Lender: Contact local Indiana SBA PLP lenders for prequalification and review their criteria.
- Apply: Fill out SBA loan application forms, provide required documentation, and work with your lender on underwriting. Most lenders offer online portals.
- Lender Review & Decision: Lender reviews the file, may request additional details, and submits to SBA (if not delegated). Approval can take 1-6 weeks.
- Closing & Funding: Sign loan documents, fulfill closing requirements, and receive funding—typically via wire to your business or seller’s account.
Success Stories: Indiana Businesses Using SBA Loans in 2025
- Indianapolis HVAC Company Acquisition ($450,000; 7(a) Loan):
A technician bought out his retiring employer with just 10% down and kept 7 employees on payroll. The 10-year term and 7.95% fixed rate made monthly payments manageable through service revenue. - Fort Wayne Artisan Bakery Start-Up ($38,000; Microloan):
Two co-founders leveraged a microloan from the Flagship Enterprise Center to launch a bakery, buy ovens, and cover initial marketing—repayable in 6 years at 8.15%. - Bloomington Dental Practice Real Estate Expansion ($1.1M; 504 Loan):
A growing dentist used the Indiana Statewide CDC and Lake City Bank to move into a new 6,500 sq. ft. building, financing 90% LTV with a 25-year term and a 6.3% fixed rate. - Lafayette Furniture Exporter ($750,000; SBA Export Express):
This company utilized Export Express financing for inventory and shipping to new Canadian clients, protecting their cash flow and expanding sales abroad.
Indiana SBA District Office & State Resources
Indiana District Office (Indianapolis):
8500 Keystone Crossing, Suite 400
Indianapolis, IN 46240
Official site | Phone: (317) 226-7272
Services include workshops, business plan development, lender match, export counseling, Women’s Business Centers, SCORE, and SBDC support statewide (Evansville, Gary, Fort Wayne, South Bend, Terre Haute).
Indiana Business Incentives & Development Programs (2025)
- Indiana Economic Development Corporation (IEDC): Offers tax credits, workforce training grants, and site selection help. See iedc.in.gov
- Next Level Jobs: Grant program upskilling Indiana workers, reimbursing select training expenses for employers.
- EDGE Tax Credit: For job-creating small businesses increasing payroll.
- Venture Capital Investment Tax Credit: For attracting investor funds to Indiana startups.
Conclusion: Take the Next Step with SBA Financing in Indiana
Whether you’re acquiring a local company, buying commercial property, or launching your dream startup, SBA loans continue to empower Indiana business owners. By leveraging Indiana’s robust lending network, generous state incentive programs, and the security of SBA guarantees, Hoosier entrepreneurs can thrive in 2025 and beyond. Start by connecting with a local Preferred Lender or the Indiana SBA District Office to explore your best options.
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Use these trusted resources to grow and manage your small business—then connect with GHC Funding
to explore financing options tailored to your needs.
GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans,
and more—start your funding conversation today.
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