IBJNews

Small-biz lending on the rise

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I keep wondering why I keep hearing about this problem of corporations leaving America, and I never hear a reasonable proposal to lower corporate tax rates and raise personal rates on income from capital gains and dividends, especially for high earners. It is just too simple of a solution for Congress to embrace?

  2. Are you financially down and you need money to settle your dept,or you need money to start up a business or to invest on a huge business,we also offer Loans to individuals, Firms and cooperate bodies at low interest rate , loan terms determinant,Loan amount between the sum of $5,000.00 to $100,000,000.00. US Dollars And Euro. Loan for developing businesses a competitive edge/ business expansion. We Offer The Following Kinds Of Loans. Personal Loans (Secure and Unsecured) Business Loans (Secure and Unsecured) Consolidation Loan FIRST INFORMATIONS NEEDED ARE: BORROWER’S DATA’S INFORMATION,FILL AND RETURN FOR QUICK START UP PROCESS. Name:_________ Last Name:_________ Age:_________ Contact Address:_________ Country:_________ Amount Needed as Loan:_________ Loan Duration:_________ Phone Number__________ Monthly Income/Yearly Income:_________ Purpose for Loan:_________ Occupation:_________ How Soon is Loan Needed__________ Email via: albertbrownfirm@outlook.com

  3. is a disaster. SR37 already needs to be built to interstate standards between 465 and SR144. Southport Road is a mess each morning and evening.

  4. Bass Pro Shops would be good for the mall as well as a Giant Eagle Market District or a Jungle Jim's International Market Place grocery store like the one near Cincinnati Ohio.A Disney quest indoor theme park would be good.An Academy outdoor store would be good too.Indoor Circus shows and magic shows would be good as well. A casino with sports bar would be good.A Disney theater inside that shows movies and Broadway shows would work.Nashville Tennessee concert shops with indoor neon lights would be good.How about a theater that shows travel shows and theme parks. A train store would be good.How about a giant toy store with high tech video games.

  5. This development is in addition to Allpoints Midwest 5, Aitrtek, a recent FedEx and more in Plainfield. Greenwood and Brownsburg also have similar projects.

ADVERTISEMENT