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Indiana Small Business Loans and Grants

There are more than 451,000 small businesses in the state of Indiana. This economy employs about 1,6 million people, which is more than 99% of the private workforce. In Indiana small businesses can get loans between $13,000 to $1.2 million, making it one of the best states for starting or owning a business.

At a glance A lack of funding is one of the main reasons businesses fail within the first few years of starting out. Entrepreneurs from Indiana, who are just embarking on their journey, often fail to realize that there are many loan and grant options available to them in Indiana. In this article, we analyze and compare Indiana’s top small business loans and grants.

Top Indiana Small Business Loan Options

The Huntington National Bank

Huntington Bancshares Incorporated is a large bank holding company with $101 billion in reserves. Loans are available to individuals, small businesses, and private firms. It offers three types of business loans: industrial term loans, commercial lines of credit, and government-backed loans.

Huntington Bank also offers the 7(a) scheme, which includes premiums that provide the same industry expense loans for vehicles, company debts, office furniture, or land loans. These loans are offered at various rates, with terms of up to 25 years. Land and equipment financing is also available via the bank’s 504 unsecured loans program. However, the production of jobs is a condition of these 504 loans.

Huntington provides SBA Express Loans too, which lets a small business obtain credit lines at a better cost for short and long-term needs. These types of loans are ideal for helping a small business reach its goals.

1st Source Bank

For more than 155 years, 1st Source, based out of South Bend, has provided clients with a friendly and convenient way to access financing. The bank is now the largest privately-owned financial institution in the region. 

1st Source owns roughly $7.3 billion worth of assets. It maintains 79 banking institutions in 19 states, as well as 18 1st Source Bank Specialty Finance Group venues, eight Wealth Advisory Services venues, and ten 1st Source Insurance office locations. 

1st Source Bank has many finance options for small businesses and start-up companies, such as:

Term Loans

1st Source Bank offers term loans that cover up to 100% of the item you are financing, with a repayment period of up to 10 years. You can use a term loan to finance anything from equipment and vehicles to working capital.  

SBA Loans 

As an award-winning SBA Preferred Lender, this bank offers SBA loans ranging from $5,000 to $5 million. The repayment terms are generally longer than that of a traditional business loan. Plus, interest rates are capped and are typically more favorable than the average interest rates on the market. 

Revolving Lines of Credit

1st Source Bank also provides secured and unsecured revolving lines of credit. This is a suitable finance solution for short-term cash requirements, periodical credit demands, emergency funds, and purchase inventories. Generally, you’ll have an approved amount of credit available, and you’ll only pay interest on the credit you use. Once you have fully repaid the line of credit, you can use the credit again.

Other Types of Finance

1st Source Bank offers loans designed specifically for specialty equipment such as heavy-duty vehicles, step vans, and funeral cars. Moreover, farm business owners can get tailored finance for livestock, agricultural land, working capital, and machinery. 

The bank also offers business acquisition loans that finance up to 90% of the purchase of an existing business with a repayment term of up to 10 years.  

German American

Small companies are critical to the economy and workforce in the U.S.A. German American Bank collaborates with the United States Small Business Administration (SBA) to provide financial assistance to new and emerging small businesses. SBA loans are federally guaranteed and have more flexible debt arrangements, longer repayment terms, and smaller down payment options.

Small business entrepreneurs commonly use 7A Loans as a main source of funding. This platform offers long-term funding to growing companies for a range of purposes, including working capital, commercial property, expansion, facilities, and inventory. 

Small companies can get funding through 504 loans, which can help them expand and create jobs. This loan program encourages economic growth by providing long-term funding with fixed rates. The finances can be used for the purchase of fixed assets to increase or modernize your businesses.

Institution

Type of Financing

Loan Amount

Interest Rate

Loan Term

The Huntington National Bank

SBA 7(a) scheme

SBA 504 loans

SBA Express Loan

Between $5,000 and $5 Million

It varies depending on the loan amount

Up to 25 years

1st Source Bank

Term Loans 


SBA Loans



Business Acquisition Loans


Farm Loans



Revolving Lines of Credit

Varies according to the type of loan




$5,000 to $5 Million



Varies according to loan type


Varies according to loan type


Varies according to credit approval

Varies according to the type of loan, credit score, amount, and terms.

Below market interest rates


Also varies 


Also varies




Also varies

Varies according to loan type



3 to 20 years



Up to 10 years


Varies according to finance amount


Ongoing revolving credit

German American

SBA 7A Loans

SBA 504 Loans

Up to $5,000,000

Up to $5,000,000

Below market interest rates

Up to the 25 years SBA standard maximum

Top Online Indiana Small Business Loan Options

1. Crowdfunding

Kickstarter and Indiegogo are the two most popular crowdfunding platforms in Indiana. Many small businesses struggle to meet the lending requirements of financial institutions, and often turn to the community for help. 

Crowdfunding typically involves raising capital through online campaigns. The final goal is generally to raise the amount needed to start a specific business. People can donate money or items. 

Many businesses in Indiana have grown substantially as a result of crowdfunding. However, most businesses don’t look to crowdfunding as their preferred method of funding.  

2. American Express

American express caters to small businesses and may help these businesses with some of the credit issues they might face when starting up. There are many different credit cards available with various benefits. However, we recommend the Blue Business Plus credit card for businesses that are starting out. 

This card provides a good source of funding for your small businesses, when handled correctly. You can sign-up and use it for a year free of charge and without paying any interest. You just need to make sure that you pay your installments on time.

It can be challenging for individuals with lower credit scores to apply - as the minimum score is 700. This means it's less accessible than some of the other options on this list.

3. Chase Bank

One of the best funding options for businesses that are starting out, in the United States, is the Chase Ink Business Cash credit card. Businesses get an initial bonus of $750 just for opening an account. The interest rates are some of the lowest on the market, starting at 1% - 5 %. The interest rate varies according to how much your business spends and how long your business will take to repay the loan.

There is, unfortunately, a catch. Your business has to spend $7,500 in the first three months of opening the account, and you must have a credit score of 660. This isn't very difficult to achieve but can be a hurdle for some businesses. 

Additional Indiana Small Business Financial Resources

In this section, we discuss some other avenues and resources available to small business entrepreneurs in Indiana. 

Southwest Indiana Chamber

The Southwest Indiana Chamber has a page dedicated to financing options for small businesses. They also offer many other resources that Indiana business owners can take advantage of. 

 

Small Business Relief Grants

LISC primarily provides investments for people from minority groups, women, and immigrant-owned companies in traditionally underprivileged areas. LISC Indianapolis has awarded 76 $5,000 grants to minority, refugee, and women-owned small companies. LISC is a nationwide agency for small business funding that has both Indianapolis and national offices.

Other Resources for Indiana Small Businesses

Here are guides and resources for opening a business in Indiana:

Learn how to market to the government of your state or municipality with these resources:

The online Indianapolis Public Library has a plethora of resources available. Here are a few of them:

How to Prepare for an Indiana State Business Loan

Here are some general points to consider when preparing for an Indiana state business loan: 

  • Draw up a Business Plan
  • Carry out SWOT analysis
  • Find a lender working with new businesses
  • Check that your credit score meets the requirements
  • If your credit score is too low, look into options such as crowdfunding or business credit cards
  • Find out what to do to qualify for specific grants
  • Find a grant that can pay off your unpaid invoices
  • Find a loan that can cover your initial operations
  • Carry out market analysis for your business
  • Carry out predictive analysis for your business
  • Find out how to improve your and your business's credit score
  • Explore all funding options, including creative alternatives

Bottom Line

The initial stages of any small business are typically the hardest. There are many unique and innovative business ideas out there, yet funding is often an issue that prevents businesses from reaching their goals. 

That’s why it’s important to look at all the financing options available to see which one will best help your business. From state grants and small business loans to business credit cards and collateral financing, there are numerous options available for any small businesses in Indiana. 

Of course, every option has its risks and advantages. You will have to weigh each loan type against each other to see which one will most help your business. If you have the right business plan and enough passion, you will find the funding you need to get your business off the ground.