Indiana small business grants and loans for 2025

What to consider before applying

If you’re beginning to explore business funding and support in Arizona, here’s what to consider before you apply.

How hard is it to get a business loan in Indiana?

Getting a business loan in Indiana can range from fairly straightforward to quite challenging, depending on your financials and the type of loan. If you have strong credit, solid cash flow, and at least two years in business, you’ll likely qualify for traditional loans. For newer businesses or those with less established credit, alternative lenders or SBA-backed loans may offer more flexible options. You should also prepare financial statements, tax returns, and a business plan to help improve your chances of getting approved.

Are there free funding programs for Indiana small businesses?

Yes, Indiana offers several grant programs for small businesses. These grants typically don't require repayment but have specific eligibility requirements. For example, Manufacturing Readiness Grants from Conexus Indiana support advanced manufacturing initiatives, while local economic development organizations (like Indy Chamber) also offer microgrants and pitch competitions for startups and tech-focused businesses.

Does Indiana have a debt relief program?

Indiana doesn’t have a dedicated state-run debt relief program for small businesses, but there are helpful resources. The Indiana Small Business Development Center (ISBDC) offers free one-on-one business counseling, including financial management and debt restructuring strategies.

Indiana small business grants

The state of Indiana has funded various small business ventures across multiple different industries. These initiatives usually come in the form of small business grants that are designed to fuel growth, drive innovation, and promote job growth in the region. Here are some state-sponsored grants available to small businesses:

1. Indiana Technical Assistance Program (INTAP)

INTAP is a program run by the Indiana Small Business Development Center. It helps small businesses pay for expert help on projects that can move their business forward. You could get up to $15,000 to use for needs like legal guidance, tech upgrades, or inventory systems.

2. Indiana Department of Agriculture grants

For agriculture businesses, the Indiana State Department of Agriculture offers several grant programs. These include funding for clean water initiatives, specialty crops, food system upgrades, and even meat processing infrastructure. These programs help Indiana farmers and food producers keep growing and evolving.

3. Preservation and Community Enhancement (PACE) Grant Program

If your business is situated in the city of Madison, the PACE Grant Program provides matching grants to property owners looking to rehabilitate and improve the structural integrity of buildings within Madison's Historic District boundaries.

4. FHLBI Elevate Grants

The Federal Home Loan Bank of Indianapolis (FHLBI) offers Elevate Grants to help small businesses invest in new technology, employee training, or marketing support. If your business is based in Indiana or Michigan and has been operating for at least 12 months, you may be eligible for up to $20,000.

5. Vibrant Places Grant

The Vibrant Places Grant is part of South Bend’s push to revitalize key areas of the city and support local businesses. This matching grant offers up to $20,000 to help businesses make visual improvements, like updated signage, outdoor seating, lighting, or storefront renovations.

Indiana small business grant eligibility

Each of the above Indiana grants has specific eligibility requirements that will likely extend beyond those listed here. It's also worth mentioning that new grants become available all the time, and further research could yield additional funding opportunities. But generally, grant programs consider factors such as the following:

• Business size: Most grants are reserved for small businesses, typically defined by employee count or annual revenue.
• Location: Some grants are only available to businesses in certain Indiana cities or counties, especially in underserved or rural areas.
• Industry focus: Many programs support businesses in specific industries, like advanced manufacturing, technology, agriculture, or sustainability.
• Financial need: You may need to show financial hardship or demonstrate how grant funds would support stability or growth.
• Operational history: Some grants require your business to be in operation for at least 6 to 12 months before applying.
• Community impact: Programs often prioritize businesses that contribute to job creation, neighborhood development, or innovation.
• Matching funds: A few grants require you to match a portion of the funding with your own capital.
• Ownership status: Women-owned, veteran-owned, and minority-owned businesses may receive special consideration or access to targeted grants.
• Required documentation: You’ll likely need to submit a business plan, proof of good standing with the state, financials, and a breakdown of how you’ll use the funds.

Federal small business grants

Federal grants, such as the following, are also available and may be a potential funding source for your business.

1. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs

The SBIR and STTR programs support small businesses engaged in research and technological innovation. These grants provide funding to help businesses develop and commercialize new technologies in industries such as healthcare, defense, and energy. Eligible businesses must meet federal guidelines and work with government agencies like the National Science Foundation or the Department of Defense.

2. USDA Rural Business Development Grants

The U.S. Department of Agriculture (USDA) provides Rural Business Development Grants (RBDG) to help small businesses in rural communities grow and thrive. These funds support projects such as training, technical assistance, and infrastructure improvements. To qualify, businesses must operate in areas with a population of fewer than 50,000 people.

3. Minority Business Development Agency (MBDA) Grants

The MBDA, a division of the U.S. Department of Commerce, offers grants to support minority-owned businesses. These grants fund programs providing business training, access to capital, and expansion opportunities. MBDA grants are typically awarded to nonprofit organizations and business development centers that assist minority entrepreneurs.

4. Economic Injury Disaster Loans and Grants

During economic downturns and natural disasters, federal grants and low-interest loans become available through agencies like the SBA and the Federal Emergency Management Agency (FEMA). 

Additional grant resources for Indiana businesses

Beyond statewide programs and federal funding, Indiana business owners can tap into other grant opportunities from local governments, nonprofits, and corporate partners. These alternative funding sources may include:

• Local government grants: Cities like South Bend, Madison, and Indianapolis often offer grants for commercial building improvements, downtown revitalization, or community development efforts.
• Private foundation grants: Some Indiana-based nonprofits and regional foundations—e.g., Ball Brothers Foundation—provide grants to businesses that align with their mission, especially those focused on innovation, workforce development, or sustainability.
• Corporate grants: Large companies and financial institutions sometimes fund small business grant programs, particularly for minority-owned, women-owned, or rural businesses in Indiana.

How to get a business grant in Indiana: Application process

Applying for a grant takes some planning, but it’s doable with the right steps. Whether the funding comes from the state, a local program, a private foundation, or a national source, most grants ask for similar requirements. The guide below walks you through the process so you can feel more confident, stay organized, and give your business the best shot at getting the funding it needs.

Applying for Indiana-sponsored grants

Follow these steps to apply for state-sponsored grants:

1. Explore Indiana grant opportunities

Visit the IEDC website, your local chamber of commerce, or the Indiana SBDC to see what grants are currently open. Many are time-sensitive, so check frequently.

2. Check your eligibility

Each grant program has its own rules. Review the requirements carefully—such as business size, location, industry, and operational history—to make sure you’re a good fit.

3. Gather required documents

You’ll typically need basic business documents like financial statements, proof of good standing with the Indiana Secretary of State, a business plan, and possibly tax returns or permits.

4. Review the program details

If the grant includes a Notice of Funding Opportunity (NOFO) or similar overview, read it closely. It explains what the grant funds can be used for, deadlines, and submission instructions.

5. Write and tailor your application

Clearly explain how your business aligns with the grant’s goals. Include a budget, timeline, and how the funding will help your business grow or serve your community. Keep your answers specific and focused.

6. Submit before the deadline

Use the designated portal or instructions to submit your application. Double-check that everything is complete and formatted correctly.

Applying for federal grants

1. Identify federal funding opportunities

Search for available grants on Grants.gov and specific federal agency websites. Review eligibility criteria, funding priorities, and application deadlines.

2. Obtain a Unique Entity Identifier (UEI)

Register in the System for Award Management (SAM.gov) to obtain a UEI, which is required for federal grants. Maintain an active SAM.gov registration to stay eligible.

3. Review the Funding Opportunity Announcement (FOA)

Carefully read the FOA to understand grant objectives, requirements, and evaluation criteria. Note key deadlines and required documents.

4. Prepare the application package

Write a detailed project narrative explaining your goals, impact, and execution plan. Develop a comprehensive budget and justification for requested funding. Be sure to also gather supporting documents, such as letters of support, resumes, and compliance certifications.

5. Submit your application

Use the designated platform to submit your application. For federal grants, this is typically Grants.gov. Ensure all components are properly formatted and submitted before the deadline.

6. Follow up and await feedback

Monitor your application status through the submission portal. Respond promptly to any requests for additional information or clarifications.

Applying for local, private, or corporate grants

1. Find grant opportunities

Check local government websites, private foundations, and corporate grant programs for available funding. Review eligibility and application requirements.

2. Prepare required documents 

Gather business details, financial statements, and a strong proposal outlining your project, goals, and impact.

3. Submit your application 

Follow the specific submission process for each grant, ensuring all required documents are included.

4. Monitor and follow up 

Track your application status and respond to any follow-up requests for additional information.

Are there repayment requirements for small business grants in Indiana?

Traditional grants differ from loans. They typically do not require repayment. Grants are essentially "gifted funds" provided to businesses on behalf of an organization to help it meet specific objectives such as innovation or economic development.

However, all grants come with conditions. If you fail to meet these stipulations—by failing to complete a project or misusing funds, for example—you might have to repay the grant money. Unlike loans, grant funds do not come with repayment schedules or interest rates.

Always review the fine print when applying for a grant to avoid having to repay any funds. QuickBooks accounting software can help you track the use of your grant funds and even assist you in strengthening your next grant proposal.

Indiana small business loans

While you can go to a traditional bank or credit union for a small business loan, Indiana offers several loan programs designed to help small businesses grow, launch new products, or simply keep things running smoothly. Whether you need funding for startup costs, equipment, or working capital, these loan options can help provide the financial support you need.

1. Indy Chamber loan program

The Indy Chamber offers loans ranging from $1,000 to $50,000 with interest rates between 6% and 9%. These loans are available for both startups and established businesses. Applicants must be at least 18 years old and reside in central Indiana.

2. Legend Fund

Launched by the Indiana Economic Development Corporation (IEDC), the Legend Fund is a $29 million initiative aimed at improving access to capital for small businesses, especially those in underserved communities. The program partners with local lenders to provide debt capital for business expenses like hiring, facility improvements, or product development.

3. Community Investment Fund of Indiana (CIFI)

CIFI is a nonprofit lender that helps small businesses access funding when traditional loans aren’t an option. CIFI focuses on underserved communities, offering flexible financing to entrepreneurs who may have limited credit history or lack collateral. Loan amounts range from $25,000 to $250,000, which can be used for equipment, inventory, working capital, or business expansion. 

4. SBA 7(a) Loan Program

In addition to state-sponsored loan programs, the SBA 7(a) Loan Program is a federally backed option that offers Indiana small businesses funding for working capital, equipment, real estate, and debt refinancing. Loans are issued through banks, credit unions, and alternative lenders, with the U.S. Small Business Administration guaranteeing a portion of the loan to reduce lender risk. Eligibility typically requires strong credit, sufficient revenue, and a solid business plan.

Indiana small business loan eligibility

To qualify for small business loan programs in Indiana, most businesses need to meet the following criteria:

• Size standard: Typically, your business must have fewer than 750 employees. Some lenders may use a lower threshold depending on the program.
• Location: Your business must operate within the state of Indiana.
• Good standing: You should be registered with the Indiana Secretary of State and in compliance with all state regulations.

Additional requirements may vary by lender or program, so it’s important to review the specific terms before applying.

Do you have to pay back loans in Indiana as a small business?

Yes, loans must be repaid according to the terms agreed upon with the lender, including interest rates and payment schedules. Before accepting a loan, make sure you understand the full repayment terms, including any fees, interest accrual, and what happens if you fall behind. Consult a financial advisor or accountant who can help you choose the best loan for your business and manage repayment effectively.

How to get a business loan in Indiana: Application process

Small business loans in Indiana are available through banks, credit unions, online lenders, and state-supported programs. To give yourself the best chance of approval, follow these key steps:

1. Assess your funding needs

Figure out how much money you need, what you’ll use it for, and which type of loan—like working capital, equipment, or real estate—makes the most sense for your business.

2. Review your credit and finances

Check both your personal and business credit scores. Gather your most recent financial statements and confirm that your revenue supports repaying the loan.

3. Create or update your business plan

Most lenders want a clear business plan that outlines your operations, goals, and how you plan to repay the loan. Be sure to include financial projections and use of funds.

4. Research Indiana lenders

Compare loan options from local banks, credit unions, and programs through the Indiana Economic Development Corporation (IEDC). Look for terms, interest rates, and eligibility requirements that fit your business.

5. Collect required documents

You’ll likely need tax returns, bank statements, a business license, proof of registration with the Indiana Secretary of State, and collateral details (if applying for a secured loan).

6. Submit your application

Follow your lender’s process—whether it’s online, in person, or through a partner organization—and double-check that all documentation is included.

7. Wait for approval and funding

After reviewing your application, the lender may request more information before final approval. Once approved, funds are usually deposited within days to a few weeks, depending on the loan type.

Indiana small business funding resources and support

Whether you’re just starting out or looking to scale, the state offers a variety of programs to help you access capital, get expert guidance, and grow your business. Here are a few key resources:

Indiana Small Business Development Center (Indiana SBDC)

The Indiana SBDC is a statewide network offering free, one-on-one business advising, training, and access to funding opportunities. The SBDC can guide you through writing a business plan, preparing financials, or applying for a grant or loan,

Elevate Ventures

Elevate Ventures provides investment capital and advisory support to Indiana startups with high growth potential. The organization offers pitch competitions, seed and early-stage funding, mentorship, and strategic business guidance.

State Small Business Credit Initiative (SSBCI)

Indiana’s participation in the SSBCI program helps small businesses tap into affordable capital through partnered community lenders. The program is designed to support businesses that may not qualify for traditional loans by offering credit enhancements, loan guarantees, and venture capital opportunities.

Other ways to fund your small business in Indiana

Grants and loans are common funding options for businesses, but they aren’t the only ways to secure financial support. Indiana small businesses can explore a variety of alternative funding methods to fuel growth and operations. Here’s a look at some of the most popular options:

Alternative loans

Non-traditional financing options such as online lenders, peer-to-peer lending, or merchant cash advances, often with more flexible requirements than bank loans.

Angel investors

Established entrepreneurs (angel investors) who invest their personal money into startups, often at an early stage, in exchange for equity.

Bootstrapping 

Using personal savings and revenues to fund business operations without external financing.

Contests

Competitions where businesses pitch ideas to win funding or resources.

Corporate programs

Initiatives by large companies offering funding, mentorship, or resources to small businesses.

Crowdfunding 

Raising small amounts of money from a large number of people, typically via online platforms.

Friends and family 

Obtaining funds from personal networks to support business ventures.

Incubators 

Organizations that support startups with resources, mentorship, and sometimes funding.

Microloans

Small, short-term loans from nonprofit lenders, government programs, or alternative lenders, often designed for startups and businesses that may not qualify for traditional bank loans.

Product presales

Selling products before they are produced to generate upfront capital.

Purchase order financing

Obtaining funding based on purchase orders to pay suppliers and fulfill customer orders.

Vendor financing

Suppliers provide goods or services with deferred payment terms to support business cash flow.

Venture capitalists 

Professional firms that invest in startups with high growth potential in exchange for equity.

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