Currently, 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.
Top Indiana Small Business Loan Options
Let’s begin by taking a closer look at some of the best small business loan options in Indiana:
Community First Bank of Indiana is dedicated to supporting local small businesses through a broad array of commercial loan products that meet diverse business needs. Some of the small business loan types offered by the Bank include:
- Commercial term loans. With repayment terms between three and seven years, commercial term loans can be paramount to help your business meet its long-term financing needs. These loans come with either fixed or variable interest rates and can be used for equipment purchases, buy-outs of equity partners, and other business needs.
- Commercial mortgages. Community First Bank of Indiana offers commercial mortgages ranging between 15 and 20 years, with a variety of interest rate options available.
- Working capital lines of credit. Working capital lines of credit are reviewed annually and priced relatively to the prime lending rate. These loan options are ideal for seasonal businesses or businesses on a growth trend.
- Commercial construction loans. The commercial construction loans offered by the bank are structured on a variable or fixed rate basis with interest-only payments.
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 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.
- Other types of financing-1st Source Bank also offers loans for specialty equipment, as well as agricultural loans.
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.
4. Freedom Bank
As a locally owned and operated community bank, Freedom Bank serves Spencer, Dubois, and surrounding counties within Indiana. In addition to personal and business banking services, Freedom Bank offers an array of small business loans in Indiana, including:
- Commercial real estate and building loans
- Business acquisition loans
- Machinery and equipment loans
- Rental property loans
- Construction loans
- Seasonal operation loans
- Agricultural loans
- Lines of credit for inventory and receivables
- Refinance and consolidation loans
- Term notes for most business assets
While the bank doesn’t go into much detail about the terms and rates offered on different small business loan products, they are readily available to discuss your options over the phone
Top Online Indiana Small Business Loan Options
In addition to traditional lenders, such as commercial banks, online lending platforms often offer viable alternative options for small business financing.