SBA Loans in Indiana: The Complete 2025 Guide for Small Businesses
Indiana has long stood out as a flourishing environment for entrepreneurs and small-business owners. As we move into 2025, access to capital is more crucial than ever for sustaining growth, revitalizing local economies, and supporting innovation in the Hoosier State. Understanding the full scope of SBA loan programs available in Indiana can empower you to start, acquire, or grow your business with confidence.
- SBA Loans in Indiana: The Complete 2025 Guide for Small Businesses
- Table of Contents
- Indiana Small Business Landscape in 2025
- SBA Loan Programs Available in Indiana
- Indiana SBA Loan Qualification Criteria (2025)
- Top SBA Preferred Lenders in Indiana
- Indiana SBA Loan Application: Step-by-Step (2025)
- Success Stories: Hoosier Business Owners & Realistic Loan Amounts
- Current Indiana SBA Loan Terms, Rates, and 2025 Updates
- Local SBA District Offices & Resources in Indiana
- Indiana State Incentives & Business Programs
- Frequently Asked Questions
Table of Contents
- Indiana Small Business Landscape in 2025
- SBA Loan Programs Available in Indiana
- Indiana SBA Loan Qualification Criteria (2025)
- Top SBA Preferred Lenders in Indiana
- Indiana SBA Loan Application: Step-by-Step
- Success Stories: Hoosier Business Owners & Realistic Loan Amounts
- Current Indiana SBA Loan Terms, Rates, and 2025 Updates
- Local SBA District Offices & Resources in Indiana
- Indiana State Incentives & Business Programs
- Frequently Asked Questions
Indiana Small Business Landscape in 2025
Small businesses form the backbone of Indiana’s economy, accounting for over 99% of all businesses and employing nearly half of the workforce. Key industries include manufacturing, logistics, agriculture, and an ever-growing tech sector centered in Indianapolis, Fort Wayne, and South Bend. The state’s favorable business climate and supportive government resources have helped Indiana weather economic shifts and emerge even stronger in 2025.
Funding remains the primary hurdle for both aspiring entrepreneurs and established business owners, making SBA loans a critical pillar in Indiana’s economic development toolkit.
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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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For details on GHC Funding's specific products and to start an application, please visit our homepage:
SBA Loan Programs Available in Indiana
Indiana entrepreneurs have access to the full spectrum of federal Small Business Administration loans, uniquely structured to support startups, acquisitions, real estate purchases, working capital needs, and equipment financing. Here’s an in-depth look at the main SBA loan options for 2025:
1. SBA 7(a) Loan Program
- Most popular and flexible SBA-backed loan.
- Use for startup costs, acquisitions, working capital, equipment, inventory, and refinancing.
- Loan amounts: $30,000 to $5 million.
- Terms: Up to 10 years for working capital, 25 years for real estate.
- 2025 Interest Rates: 8.5% to 11.0% variable (Prime + spread, updated quarterly).
2. SBA 504 Loan Program (Real Estate & Equipment)
- Designed for commercial real estate acquisition, renovation, construction, and significant fixed capital purchases such as large equipment.
- Loan amounts: $100,000 to $5.5 million or more for qualifying projects.
- Terms: Up to 25 years (real estate), 10-20 years (machinery/equipment).
- Interest Rates: Fixed rates from 6.4% to 7.2% (as of Q2 2025).
- Structure: 50% bank loan, 40% SBA/CDC loan, 10% borrower down payment.
3. SBA Microloans
- Geared toward startups and very small businesses, including minority- and women-owned enterprises.
- Loan amounts: $5,000 to $50,000.
- Terms: Up to 6 years.
- Rates: 8% to 13% depending on intermediary lender and borrower qualifications.
4. SBA Express Loans
- Faster approval (36 hours in most cases), less paperwork.
- Loan amounts: Up to $500,000.
- Great for working capital, lines of credit, and small expansions.
- 2025 Rates: 8.5% to 12.5%.
5. SBA Export & Specialty Loan Programs
- Export Express, Export Working Capital, and International Trade Loans help Indiana businesses enter or expand in overseas markets.
- Loan amounts: Up to $5,000,000.
Indiana SBA Loan Qualification Criteria (2025)
SBA loans are designed to be more attainable than most conventional financing. To qualify, Indiana businesses generally must:
- Operate as a for-profit business in Indiana.
- Demonstrate business viability and a reasonable ability to repay.
- Meet size standards (typically fewer than 500 employees or below industry revenue caps).
- Have exhausted other non-SBA funding options (SBA is a lender of last resort).
- Owner(s) must have good personal credit (typically 650+ for 7(a)/504).
- May require down payment:
- 7(a): Often 10%-20% for startups/acquisitions.
- 504: Standard 10% (sometimes up to 20%) down.
- Provide collateral for some loan types (often real estate or significant business assets).
- Cannot be involved in gambling, lending, or speculative real estate ventures.
Startups typically must provide a robust business plan and show relevant managerial experience.
Top SBA Preferred Lenders in Indiana
Many local and national banks are authorized as SBA Preferred Lenders (PLP), meaning they can approve loans faster and with fewer SBA reviews. Five leading SBA lenders in Indiana for 2025 include:
- Old National Bank (Evansville, state-wide): Indiana’s largest bank, specializing in 7(a) and 504 loans up to $5M for Hoosier businesses.
- Lake City Bank (Warsaw, IN): Known for strong SBA lending, especially with startups and manufacturing businesses.
- Huntington National Bank (state-wide): Top 10 national SBA lender with streamlined processes for working capital and business acquisitions.
- Centier Bank (Merrillville/local branches): Exceptional service for real estate and equipment-focused 504 and 7(a) lending.
- 1st Source Bank (South Bend and statewide): Focused on Main Street businesses, SBA Express loans, and commercial expansions.
Other active SBA lenders include Fifth Third Bank and Regions Bank, both with statewide footprints.
Indiana SBA Loan Application: Step-by-Step (2025)
- Assess Eligibility: Review SBA program requirements for your business size, industry, and credit history.
- Identify the Right Loan Program: Choose from 7(a), 504, Microloan, Express, or Export programs based on your goals (i.e., commercial real estate, equipment, or working capital).
- Gather Documentation:
- Personal and business tax returns (last 3 years)
- Current business financials
- Business plan (for startups/acquisitions)
- Ownership and management profiles
- Business licenses, articles of incorporation, and legal documents
- Lease agreements (if applicable)
- Select a Preferred Lender: Reach out to an Indiana SBA Preferred Lender (see above) for pre-qualification and guidance.
- Submit Loan Application: Complete the lender and SBA forms (such as SBA Form 1919/1920 for 7(a)), supply all supporting documentation.
- Lender/SBA Review: Underwriting, credit review, and SBA guarantee processing (timeline: Express loans ~1 week, Standard 7(a)/504 ~3-8 weeks).
- Closing & Funding: Review and sign loan documents. Funds are released; for 504 loans, bank/CDC/SBA portions are disbursed per project schedule.
Work closely with your banker—Indiana’s Preferred Lenders and local SBA offices assist in ensuring a smooth application process.
Success Stories: Hoosier Business Owners & Realistic Loan Amounts
- Business Acquisition – South Bend: In 2024, a local entrepreneur acquired an established cleaning franchise using a $350,000 SBA 7(a) loan from Lake City Bank, enabling the purchase, working capital, and initial payroll expansion.
- Commercial Real Estate – Indianapolis: A growing fabrication shop secured a $1.7 million SBA 504 loan through Old National Bank and Indiana Statewide CDC, financing a new 15,000-square-foot facility and expanding operations.
- Equipment Financing – Fort Wayne: A custom manufacturing startup accessed a $150,000 SBA Express loan via Huntington National Bank to buy advanced CNC machinery for a new product line launch.
- Working Capital – Evansville: A family-owned restaurant group leveraged a $75,000 SBA Microloan via Flagship Enterprise Center for remodel and inventory expansion, supporting 12 jobs.
These examples reflect realistic uses of SBA financing across various industries and regions of Indiana in today’s market.
Current Indiana SBA Loan Terms, Rates, and 2025 Updates
The current interest rate environment in 2025 is moderately elevated compared to historic lows, but SBA loan rates remain below most conventional business loan options:
- 7(a) Loans: Prime + 2.75%–4.75% (typically 8.5%–11.0% in Q2-2025)
- 504 Loans: Long-term fixed rates, 6.4%–7.2%
- SBA Express: Prime + 4.5%–6.5% (max 12.5%)
- Microloans: 8%–13%
Key 2025 SBA updates:
- Faster digital processing and e-signature capabilities streamline approvals.
- Reduced guarantee fees and expanded eligibility for certain underserved communities.
- SBA Green Incentives on 504 loans for energy-efficient projects in Indiana.
Local SBA District Offices & Resources in Indiana
For hands-on support, financial literacy, and program navigation:
- Indiana District Office
8500 Keystone Crossing, Suite 400
Indianapolis, IN 46240
Phone: (317) 226-7272
SBA Indiana District Office - SCORE Indiana – Free business mentoring: indiana.score.org
- SBDC Network – Business planning/advisory across IN: isbdc.org
- Women’s Business Centers (WBC): Serving Bloomington and Indianapolis entrepreneurs.
Indiana State Incentives & Business Programs
- EDGE Tax Credits: Rewards job creation and capital investment in Indiana businesses.
- Hoosier Business Investment Tax Credit: Credits for qualified capital investments.
- Next Level Jobs Grants: Training grants (up to $50,000 per business for workforce training).
- Certified Technology Parks: Incentives for tech startups locating in designated zones.
- INvestEd Indiana: Low-interest lending and support for early-stage companies.
Pairing an SBA loan with these local and state incentives maximizes your working capital and accelerates growth.
Frequently Asked Questions
- Q: Can Indiana startups get SBA loans in 2025?
- A: Yes, especially through the 7(a) program, microloans, and some Express products. Strong business plans and relevant management experience are key.
- Q: What is the typical SBA loan down payment in Indiana?
- A: Usually 10%–20%, with 504 loans requiring 10%–15% from the borrower (potentially more for startups or single-purpose properties).
- Q: How fast can I get funding?
- A: SBA Express loans can close in as little as 7–10 days; standard 7(a) and 504 may take 3–8 weeks depending on documentation and underwriting.
- Q: Can I use an SBA loan to buy out a partner or acquire a business?
- A: Yes, especially via the 7(a) program, which supports both business acquisition financing and partner buyouts in Indiana.
Indiana’s SBA resources are here to help you turn ambition into a thriving enterprise. Connect with local lenders and advisors to chart your 2025 growth plan.
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.
Helpful Small Business Resources
