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East Central Indiana Financing

Indiana State Office – United States Department of Agriculture (USDA)

USDA provides funding opportunities for rural small businesses through loans, loan guarantees, and grants.

• Advanced Biofuel Payment Program
• Biorefinery Assistance Program
• Business & Industry Loan Guarantees
• Community Connect Grants
• Distance Learning & Telemedicine Grants
• Farm Bill Broadband Loan & Loan Guarantee Program
• Intermediary Relending Program
• Repowering Assistance Program
• Rural Business Development Grants
• Rural Business Investment Program
• Rural Economic Development Loan & Grant Program
• Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Loans & Grants
• Rural Microentrepreneur Assistance Program
• Small Socially Disadvantaged Producer Grant
• Telecommunications Infrastructure Loans & Loan Guarantees
• Value Added Producer Grants

Carla Haskins
Muncie Area Office Contact
(765) 216-4066
Carla.Haskins@in.usda.gov

Michael R. Dora
State Director
(317) 290-3100
Michael.Dora@in.usda.gov

Federal New Markets Tax Credit Financing Program

A Federal Tax Incentive Program created to attract Capital Investment in “community-based” lenders and investors dedicated to making loans or capital investments in Businesses (for-profit and non-profit) located in disadvantaged census tracts.

Indiana Opportunity Zones

The Tax Cuts and Jobs Act of 2017 allowed governors to nominate certain census tracts as Opportunity Zones, subject to approval from the U.S. Department of the Treasury. The 156 Opportunity Zones in Indiana were selected based on a combination of factors including existing economic development programs and local coordination, economic and community data, likelihood of attracting short- and long-term investment, and growing industry sectors within the community. Rest assured that we’ve put in the time and effort so that you have access to the areas that are ready for investment.

EB-5 Regional Center

East Central Indiana Regional Partnership member counties are within a certified EB-5 Regional Center.  Congress created the EB-5 program in 1990 to benefit the U.S. economy by attracting investments from qualified foreign investors. Under the program, each investor is required to demonstrate that at least 10 new jobs were created or saved as a result of the EB-5 investment, which must be a minimum of $1 million, or $500,000 if the funds are invested in certain high-unemployment or rural areas.  Regional Centers maximize the program’s job creation benefits by facilitating the investment of significant amounts of capital in large-scale projects often in coordination with regional economic development agencies which use the EB-5 funds to leverage additional capital.

Small Business Administration (SBA) Loans

If you’re planning to start a business or expand an existing business, you might need financing help. SBA participates in a number of loan programs designed for business owners who may have trouble qualifying for a traditional bank loan. To start the process, you should visit a local bank or lending institution that participates in SBA programs.

Starting and Expanding Businesses

• Basic 7(a) Loan Program gives 7(a) loans to eligible borrowers for starting, acquiring and expanding a small business. This type of loan is the most basic and the most used within SBA’s business loan programs. Borrowers must apply through a participating lender institution.

• Certified Development Company (CDC) 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.

• Microloan Program offers very small loans to start-up, newly established or growing small business concerns. SBA makes funds available to nonprofit community based lenders which, in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

Tax Exempt Bond Program

The Indiana Finance Authority (IFA) is authorized to issue tax-exempt bonds, which lower the cost of financing for manufacturing projects, health care facilities, private institutions of higher education and certain other qualified projects. In order to qualify for tax-exempt financing, an applicant that is not a 501(c)(3) must first be awarded “Volume Cap.” Indiana is allotted annually a specific amount of Volume Cap that may be awarded to qualified applicants for the purpose of issuing tax-exempt bonds.  Tax-exempt bonds are often structured similarly to a term loan or mortgage, and the interest rates vary based on the company’s financial situation, credit enhancements, method of sale of bonds and the current market.

Indiana Finance Authority (IFA) Tax-Exempt Bond Program

The IFA is authorized to issue tax-exempt bonds, which lower the cost of financing for manufacturing projects, health care facilities, private institutions of higher education and certain other qualified projects. In order to qualify for tax-exempt financing, an applicant that is not a 501(c)(3) must first be awarded “Volume Cap.” Indiana is allotted annually a specific amount of Volume Cap that may be awarded to qualified applicants for the purpose of issuing tax-exempt bonds.

Tax-exempt bonds are often structured similarly to a term loan or mortgage, and the interest rates vary based on the company’s financial situation, credit enhancements, method of sale of bonds and the current market.

Volume Cap Program (prerequisite for tax-exempt financing through IFA)

The IFA awards Volume Cap to applicants within Indiana’s allotted capacity to issue tax-exempt private activity bonds. Volume Cap is competitively awarded based on jobs created and/or retained, wages, capital investment, project location, dedication to low-income housing and other factors. A borrower who is not a 501(c)(3) must be awarded Volume Cap before issuing bonds through the IFA.

Large Bond Program (for lower-interest borrowing of amounts more than $3M)

Applicants who need to issue more than $3 million in bonds can utilize the IFA through this program. Also known as Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs), these private activity bonds are issued by state or local government entities for the benefit of a private company.

Small Bond Program (for lower-interest borrowing of amounts $3M or less)

Applicants who need to issue $3 million or less in bonds can utilize the IFA’s Small Bond Program. The bonds can be used for costs related to manufacturing, agriculture and nonprofit organizations such as charter schools.

Urban Enterprise Zones

The Urban Enterprise Zone (UEZ) program was established under Ind. Code 5-28-15 to promote investment and increased economic activity in some of the most distressed urban areas around the state.

Capital Access Program (CAP)

The Small Business Jobs Act of 2010 created the State Small Business Credit Initiative (SSBCI) to provide direct support to states for use in programs designed to increase access to credit for small businesses. Pursuant to the Act, the U.S. Treasury has allocated funds to the State of Indiana to provide funding for the Indiana Capital Access Program – State Small Business Credit Initiative (the “Program” or CAP-SSBCI). CAP-SSBCI is a small business credit enhancement program that creates a specific cash reserve fund for a lender to use as additional collateral for loans enrolled in the program by the particular lender.

Local Revolving Loan Programs

Low interest “gap” financing loans used in conjunction with private financing is available in several communities in east central Indiana.  Terms and conditions vary by community and project.

Small Business Development Center (SBDC)

The Indiana Small Business Development Center (ISBDC) was created to have a positive and measurable impact on the formation, growth, and sustainability of small businesses in Indiana, and to help Hoosier Entrepreneurs start stronger, grow faster, and work smarter. The ISBDC offers entrepreneurs expert guidance and a comprehensive network of resources for little to no cost. Services provided include one-on-one consulting, strategic planning, market research, loan assistance and much more.

Peggy Cenova
Director, East Central Indiana SBDC
(866) 596-7232
pcenova@isbdc.org

Indiana Finance Authority

The IFA is authorized to issue revenue bonds payable from lease rentals under lease agreements with various state agencies and to finance or refinance the cost of acquiring, building and equipping structures for state use including state office buildings, garages, highways, bridges, airport facilities, correctional facilities, state hospitals and recreational facilities related to State parks. The IFA also manages the Wastewater and Drinking Water State Revolving Fund Loan Programs and the Indiana Brownfields Program.