SBA Loans in Indiana: Complete 2025 Guide for Small Businesses
Indiana’s economy is driven by thriving manufacturing, logistics, agriculture, and tech sectors, making it an ideal landscape for launching or expanding a small business. In 2025, SBA (Small Business Administration) loans remain a vital source of affordable financing for Hoosier entrepreneurs—offering attractive interest rates, longer repayment terms, and lower down payments compared to many conventional loans. This comprehensive guide explores the top SBA loan programs available in Indiana, how to qualify, the application steps, local lender recommendations, and state-specific resources for your business success.
- SBA Loans in Indiana: Complete 2025 Guide for Small Businesses
- Why Choose an SBA Loan in Indiana?
- Indiana’s Top SBA Loan Types for 2025
- 2025 Indiana Market Context & Updates
- Who Qualifies for an SBA Loan in Indiana?
- Indiana SBA Preferred Lenders (2025)
- How to Apply for an SBA Loan in Indiana: Step-by-Step
- Success Stories: Indiana SBA Loans in Action
- Local Indiana SBA District Offices & Resources
- Indiana-Specific Business Incentives & Economic Development Programs
- 2025 Key Takeaways for Indiana SBA Borrowers
- Frequently Asked Questions (FAQs) — Indiana SBA Loans 2025
Why Choose an SBA Loan in Indiana?
- Lower Down Payments: As low as 10% for most programs
- Flexible Use of Funds: Suitable for startups, acquisitions, real estate, equipment, and working capital
- Longer Repayment Terms: Up to 25 years for some loans
- Competitive Interest Rates: Caps set by SBA, often below comparable bank loan rates
- Government Guarantee: Reduces lender risk, increasing your approval chances
Indiana’s Top SBA Loan Types for 2025
The SBA backs several loan programs. Here’s what you need to know as an Indiana entrepreneur:
1. SBA 7(a) Loans
- Maximum Loan: $5 million
- Best for: Working capital, business acquisition, equipment, expansion, refinancing
- 2025 Rates: Typically Prime + 2.5%–4.75%
- Terms: Up to 10 years for working capital/equipment; up to 25 years for real estate
- Down Payment: As low as 10%, often 10%-20% for acquisitions
2. SBA 504 Loans
- Maximum Loan: Typically up to $5.5 million per project
- Best for: Commercial real estate & major equipment purchases
- 2025 Rates: (CDC portion) About 6.1%–6.8% (fixed, 10-25 years)
- Terms: 10, 20, or 25 years
- Down Payment: As low as 10% for most borrowers
3. SBA Microloans
- Maximum Loan: $50,000
- Best for: Startups, working capital, small equipment, inventory
- 2025 Rates: 7%–13%, often lower than non-SBA microloans
- Terms: Up to 7 years
4. SBA Express Loans
- Maximum Loan: $500,000
- Best for: Fast approval for working capital and equipment
- 2025 Rates: Prime + up to 6.5%
- SBA Response Time: 36 hours or less
5. SBA Export Loans
- Designed to help Indiana businesses expand international trade
- Includes Export Express, Export Working Capital, and International Trade Loans
- Loan amounts up to $5 million in some programs
2025 Indiana Market Context & Updates
- Prime Rate (January 2025): 8.50%—SBA loan rates track closely to Prime
- Indiana’s Small Business Growth: Indiana adds over 30,000 small businesses annually, making demand for SBA loans strong in a competitive lending market
- Indiana State Incentives: The Indiana Economic Development Corporation (IEDC) continues tax credits and grant programs for job creation, innovation, and entrepreneurship
Who Qualifies for an SBA Loan in Indiana?
- For-Profit Businesses: Must operate legally in Indiana
- Size: Meet SBA’s “small business” definition for your industry
- Good Credit: FICO SBSS score typically 155+; most lenders require 650 personal score or higher
- Down Payment: 10%+ for 7(a)/504 new businesses or acquisitions
- Collateral: Often required for loans >$25,000
- Demonstrate Ability to Repay: Strong cash flow, business plan, or relevant industry experience
- No Recent Bankruptcies or Delinquent Government Debt
Indiana SBA Preferred Lenders (2025)
Consider these top SBA PLP banks and lending partners serving businesses throughout Indiana:
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
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
🌐 Learn More
For details on GHC Funding's specific products and to start an application, please visit our homepage:
- Huntington National Bank – The top SBA lender in Indiana, with a strong focus on startup and expansion loans (branches statewide).
- Lake City Bank – Known for local expertise and customized SBA 504 real estate and equipment financing solutions.
- Old National Bank – Indiana-headquartered, experienced with 7(a) and Express loans for business acquisition and working capital.
- 1st Source Bank – A regional leader in SBA 504 and 7(a) lending, especially for manufacturing and logistics.
- Fifth Third Bank – Offers a wide range of SBA products, including fast-track Express loans.
- Bankable (Flagship Enterprises Center) – Indiana’s leading SBA microloan intermediary for startups and very small businesses.
How to Apply for an SBA Loan in Indiana: Step-by-Step
- Assess Your Needs: Define the purpose—startup, working capital, equipment, real estate, or expansion.
- Check Your Credit: Personal credit score (threshold: 650+ recommended), business credit if applicable.
- Prepare Documents: Business plan, financial statements, tax returns, projections, ownership info.
- Select a Lender: Choose from SBA preferred Indiana lenders above, and discuss which SBA loan fits your goals (most offer online prequalification).
- Submit Loan Application: Complete SBA Form 1919, lender application, and provide financials. Some Indiana lenders allow secure digital uploads.
- Lender Processing & SBA Review: Lender reviews application, may request clarification, then submits to SBA for rapid approval if a Preferred Lender.
- Approval & Closing: Upon approval, your Indiana lender issues a commitment letter and sets up closing—can be completed in-person or using e-signature platforms in 2025.
- Funding: Funds disbursed—timeframes: as little as 2 weeks for Express, 4-12 weeks for 7(a) and 504 loans depending on complexity.
Success Stories: Indiana SBA Loans in Action
- Manufacturing Startup, Indianapolis
A local veteran entrepreneur secured a 5,000 SBA 7(a) loan from Huntington Bank with 10% down to launch an advanced manufacturing startup, covering equipment purchase and six months’ working capital. The business now employs 14 Hoosiers in 2025. - Business Acquisition, Fort Wayne
Through Old National Bank, two Indiana professionals acquired a specialty cleaning franchise with a $920,000 SBA 7(a) loan (15% down). The deal included inventory, equipment, and staff retention. - Commercial Real Estate, Evansville
A minority-owned food processing business used a $1.8 million SBA 504 loan via 1st Source Bank and INSWC (CDC) to purchase and renovate a facility—20-year fixed rate, 10% down, preserving valuable working capital. - Startup Retail, Gary
With a $25,000 SBA Microloan from Bankable, an entrepreneur opened the city’s first eco-friendly pet boutique. The microloan funded inventory, lease costs, and point-of-sale setup. - Custom Equipment, Terre Haute
A growing construction company obtained a $480,000 SBA Express Loan from Lake City Bank (approved in under a week) to add two excavators, supporting project expansion and eight new hires in 2025.
Local Indiana SBA District Offices & Resources
- SBA Indiana District Office
8500 Keystone Crossing, Suite 400, Indianapolis, IN 46240
Visit Indiana SBA Office
Phone: (317) 226-7272 - SCORE Indiana: Free business mentoring and SBA loan guidance
indiana.score.org - Indiana Small Business Development Center (ISBDC): Business plan prep, market research, capital access support
isbdc.org - Women’s Business Center – Indy: Support for women entrepreneurs (SBA partner)
inwbc.org - Indiana Economic Development Corporation (IEDC): State-backed grants and incentives for new and expanding Indiana businesses
iedc.in.gov
Indiana-Specific Business Incentives & Economic Development Programs
- EDGE Tax Credits: For Indiana businesses creating jobs
- Hoosier Business Investment Tax Credit: For businesses investing in facilities and equipment
- Small Business Innovation Research (SBIR) Matching Grants: For R&D-focused small enterprises
- Next Level Jobs: Hiring and training grants through Indiana Workforce Development
2025 Key Takeaways for Indiana SBA Borrowers
- Indiana’s robust SBA lender network and incentives make business financing more accessible than ever
- SBA loans are ideal for launching, acquiring, or expanding a business, and for major investments like commercial real estate and equipment
- Leverage local SBA offices, SBDC, and lender expertise for a smooth process from prequalification to funding
Frequently Asked Questions (FAQs) — Indiana SBA Loans 2025
- What’s the minimum down payment for an SBA loan in Indiana?
- Most 7(a) and 504 loans require 10–20% down. Some microloans may not require a down payment.
- How fast can I get SBA funding in Indiana?
- Express loans may fund in 2-3 weeks; 7(a)/504 loans average 4-12 weeks from complete application to disbursement.
- Are there special incentives for minority- or women-owned Indiana businesses?
- Yes. SBA Indiana and INWBC offer specialized coaching and funding pathways. Indiana state also offers targeted grants and support programs.
Ready to grow your Hoosier business in 2025? Contact one of Indiana’s SBA preferred lenders, and leverage Indiana’s outstanding small business resources for your next big step.
Get a No Obligation Quote Today.
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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