Indiana on List of States That Qualify for SBA Loans
Indiana was recently added to what is now a growing list of states that are eligible to apply for a low-interest loan due to the ongoing COVID-19 crisis. Indiana joins California, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Maine, Massachusetts, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Rhode Island, Utah, and Washington.
Here’s some background information on the program and how it relates to COVID-19.
On March 13th, President Trump declared coronavirus a national emergency. That opened up $50 billion in SBA aid to states. In order for a state to be eligible for the program, that state’s Governor must apply to the Small Business Administration. Once the SBA determines an adequate need, it opens up the Economic Injury Disaster Loan assistance declaration, which provides loans to small businesses which have seen economic injury from COVID-19. Small business owners in Indiana can apply for the program here.
The Disaster Loans offer up to $2 million in assistance, providing vital economic support for small businesses suffering from a loss of revenue. The loans may be used to pay fixed debts, payroll, accounts payable and other bills they can’t pay because of COVID-19. The interest rate is 3.75% for small businesses. The loans have long-term repayments in order to keep the payments affordable. Longer loans can be up for 30 years depending on the borrower’s ability to pay.
SBA.gov/coronavirus – This one has a variety of coronavirus and loan information including a link to the application for disaster-relief loans.
SBA.gov/disaster – This one takes you directly to the loan application.
There a few things our members should know:
- These loans are processed first-come first served. There will be an unprecedented crush of new applications and it is best to be at the front of the line. Indiana was the first state in the region to declare a disaster and be ready to take applications.
- Important: Our members should apply even if they are not sure they will use it. Get in the pipeline now. You don’t have to fund the loan, but your loan will be ready in case you need it. Members need to remember that each loan will take time to process. No one, including the SBA, has ever seen anything like this. SBA recommends being one of the first to apply in case you will need it.
- Members also need to know the SBA disaster loans are just that: loans. They are not grants and are not free. Applicants must be credit worthy.
Check locally. There are microloan programs all over Indiana with various sponsoring organizations. Small business owners can borrow up to $50,000 fast with low interest rates. These will fund must faster than the disaster loans but you can only get up to $50,000 and this is not a huge fund like the SBA disaster fund.
Here are some participating microlenders in Indiana. Note: this information is from the SBA. Before applying, make sure you ask about how any microlends could impact eligibility for the SBA loan program.
ACCION: serving Jasper, Lake, LaPorte, Newton, Porter, Pulaski and Starke counties
Kyle Johnson, 312-275-3000 or accionchicago.org
Brightpoint: serving Adams, Allen, DeKalb, Elkhart, Grant, Huntington, Kosciusko, LaGrange, Noble, St. Joseph, Steuben, Wells, and Whitley counties.
Sherry Aden, 260-423-3546 or mybrightpoint.org
Business Ownership Initiative: serving Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Morgan and Shelby counties.
Jeannie Hurley, 317-464-2258 or businessownership.org
Flagship Enterprise Center: serving Bartholomew, Blackford, Boone, Decatur, Delaware, Fayette, Franklin, Grant, Hamilton, Hancock, Hendricks, Henry, Howard, Jay, Johnson, Madison, Marion, Morgan, Randolph, Rush, Shelby, Tipton, Union and Wayne counties.
Adam Hoeksema, 765-356-9100 or bankable.org
