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Small-biz lending on the rise

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More small businesses in Indiana are turning to a federal loan program to help finance expansions—an encouraging sign the economy is beginning to improve.

Loans and loan amounts for such fixed assets as real estate and equipment are up significantly for two Indianapolis area groups that administer the loans.

The Indianapolis-based Indiana Statewide Certified Development Corp., the largest of five CDCs in the state, works with local lenders to provide loans from the U.S. Small Business Administration’s 504 loan program.

Through the first six months of the fiscal year beginning Oct. 1, Statewide CDC has approved more than $16 million in loans for 22 projects. The amount is more than double the amount approved in the same time frame of the previous fiscal year. It is also the third-highest dollar amount administered in the first six months of a fiscal year in the Statewide CDC’s 27-year history.

Federal lawmakers created the 504 loan program to give small business owners another option to obtain financing to fund expansions.

“The fact that we are approving more alternative loans is a signal that the SBA 504 loan program is more relevant than ever,” Jean Wojtowicz said in a prepared statement. “With 504 loans, the lenders can reduce their risk and provide their borrowers with affordable financing so they can grow.”

Since 1984, Statewide CDC has provided more than $344 million to 911 Indiana companies, which have created an estimated 26,000 jobs.

CDCs in Indiana are located in Fort Wayne, Portage and South Bend. Another is in Indianapolis: Premier Capital Corp.

Premier, through the first six months of the fiscal year, has helped provide more than $9.3 million in financing for 25 projects. The number of loans Premier has administered in the first six months of the fiscal year nearly matches the 29 it did for all of the previous fiscal year, Executive Director David Amick said.

“Nowhere in my wildest imaginations did I expect we would double our volume we did in 2009,” he said. “We’re seeing it across the entire state.”

Amick attributed the uptick in lending activity to small business owners who are beginning to spend cash reserves they accumulated while waiting for the recession to subside.
 

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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