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Indiana has about 590,000 small businesses that can apply for small business grants. Submitting an application and competing for Indiana small business grants can help you grow your small- or medium-sized enterprise in the Hoosier State.
Indiana’s economy has a gross domestic product of $538.5 billion as of 2025. That’s the 19th largest GDP in the United States out of the 50 states and the District of Columbia. In every state, small businesses contribute to the nation’s economy.
Below we highlight some of the top small business grants in Indiana that you can explore.
Key Points
• Indiana offers diverse small business grants, such as FHLBI Elevate Grants and City of South Bend Business Grants.
• FHLBI Elevate Grants provide up to $20,000 for business expansion and workforce development.
• City of South Bend grants support capital improvements and sustainability projects, offering up to $112,000.
• INTAP grants cover up to $15,000 for professional services to aid business growth.
Grants for Small Businesses in Indiana
If you’re looking for Indiana small business grants, here are some potential options to consider:
Federal Home Loan Bank (FHLBank) Indianapolis Elevate Grants
• Program description: Elevate grants can help you grow your Indiana firm and cover costs related to small business expansion and workforce development.
• Incentive: Eligible business owners can receive up to $20,000 to cover project expenses, such as technology enhancements, capital improvements, and workforce development.
• General requirements: Here are some of the general requirements for this grant:
◦ Be a small, for-profit business headquartered in Indiana or Michigan
◦ Have current owners in place for at least 12 months
◦ Earn annual gross revenue of between $20,000 and $1 million
• How to apply: Partner directly with an FHLBank member institution to apply when the annual access period begins.
City of South Bend Business Grants
• Program description: The city of South Bend offers a variety of grants that may partially reimburse eligible businesses for making capital improvements.
• Incentive: Eligible businesses can receive a matching grant of up to $20,000 for enhancing building façades or streetscapes in downtown South Bend. There is also a Vibrant Places grant of up to $112,000 for implementing an advanced sustainability project in selected corridors.
• General requirements: Any business in South Bend may be eligible for a Vibrant Places matching grant. Businesses in the downtown area may be eligible for one Exterior Enhancement Grant per year.
• How to apply: Visit the City of South Bend website for additional information on these grants and how to apply.
City of Madison’s Preservation and Community Enhancement (PACE) Grant Program
• Program description: The PACE Grant Program provides matching grants to eligible property owners who rehab and improve the structural integrity of dilapidated buildings within the city of Madison, Indiana.
• Incentive: The PACE Grant Program offers the following incentives in several categories.
◦ Curb Appeal Grant: up to $5,000 for improving the appearance of your residential or commercial property within the hilltop target area
◦ Rehabilitation Grant: up to $7,500 for rehabbing your downtown historic property
◦ Dangerous Buildings Grant: up to $10,000 for the full demolition of an unsafe property within the city of Madison
◦ Dilapidated Structures Grant: up to $25,000 for the partial demolition and rehabilitation of a dilapidated structure within the city of Madison
• General requirements: Here are some of the general requirements for this grant.
◦ Own residential or commercial property in the city of Madison, Indiana
◦ Be current on all property taxes
◦ Have no current tax liens against the property
◦ Have no current litigation between you and the city of Madison
◦ Be willing to execute all legal agreements
◦ At least two years have elapsed since the property’s previous PACE grant funds were fully disbursed.
• How to apply: Contact the PACE Review Committee or Madison’s Planning, Preservation, and Design Department if you’re interested in applying.
Downtown Danville Partnership Façade Improvement Grant Program
• Program description: Businesses in Danville can receive partial reimbursements for making improvements to their storefronts and building exteriors.
• Incentive: Receive up to $5,000 per grant for making exterior façade improvements to your commercial property in downtown Danville, Indiana.
• General requirements: Here are some of the general requirements for this grant:
◦ Own a business in downtown Danville, Indiana
◦ Business is located within the boundaries of Clinton, Kentucky, Broadway, and Wayne streets
◦ Receive prior approval from the Town of Danville’s Design Review Committee
• How to apply: Go to the Downtown Danville Partnership website to submit your application online.
Indiana Technical Assistance Program (INTAP)
• Program description: Sponsored by the Indiana Small Business Development Center (ISBDC), INTAP helps small businesses execute necessary growth and improvement projects by bestowing annual grants for professional services. The goal is to help businesses secure the skills, expertise, and qualifications they need to complete a given project.
• Incentive: Grant recipients are provided with professional and technical services worth up to $15,000. Funding goes directly to the vendor.
• General requirements: Here are some of the criteria applicants must meet:
◦ Be a for-profit small business and SBDC client
◦ Have a physical presence in Indiana
◦ Work with an Indiana-based vendor
◦ Must have not received INTAP twice before
◦ Proposal does not involve facility improvements or marketing
• How to apply: Contact a nearby ISBDC office to discuss how your proposed project might be suitable for INTAP.
Who Provides Indiana Small Business Grants?
Local governments, nonprofits, and financial institutions affiliated with the Federal Home Loan Bank of Indianapolis may offer small business grants in Indiana.
You can compare small business grants in Indiana with similar programs in other states, such as:
• Florida small business grants
• Michigan small business grants
Do You Have to Pay Back a Small Business Grant?
A small business grant typically comes with terms and conditions, and you may be responsible for paying back the grant if you violate those terms. In general, small and midsized business owners are not required to pay back an SMB grant absent any violations.
You generally have to sign a funding agreement to accept a small business grant. As mentioned above, the grant may come with certain conditions. Using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.
Small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.
Recommended: What to Know About Short-Term Business Loans
Who Is Eligible for Indiana Small Business Grants?
You may qualify for Indiana small business grants if your business generates annual revenues of less than $1 million and you plan to implement a capital improvement project. Local business owners or operators of an enterprise with fewer than 500 employees may also be eligible for small business grants in Indiana.
The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. A small business, including individuals who freelance, may be eligible for small business grants.
Indiana Resources for SMB Owners Looking for Funding
Here are some resources for small and medium-sized businesses looking for funding in the Hoosier State.
Indiana Small Business Development Center (SBDC)
The Indiana SBDC is a statewide program that can provide Indiana’s small business owners with the following services:
• Free access to market research reports
• Business counseling at no cost
• Workshops and training events
SBA District Office in Indiana
The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA District Office in Indianapolis serves all 92 counties in Indiana.
SCORE Indianapolis Mentorship and Education
Serving greater Indianapolis, Terre Haute and surrounding areas, SCORE Indianapolis provides free business mentoring, no-cost workshops, marketing tools, and curated resources for all aspects of small business operations.
Alternative Funding Sources for Small Businesses in Indiana
Here are some alternative funding sources for small businesses in Indiana.
Indiana State Small Business Credit Initiative (SSBCI)
Indiana’s State Small Business Credit Initiative is a federally funded program for small business owners in the Hoosier State. Federal law — the American Rescue Plan Act of 2021 — allocates about $99 million to Indiana’s SSBCI program.
Here’s how Indiana plans to use the SSBCI funding:
• Indiana Angel Network Fund: This program will help eligible startups access venture capital in the Hoosier State. Alongside co-investors, it provides equity capital directly to startups. Investments from the Indiana Angel Network may be up to $1 million per company and typically require a minimum 1:1 co-investment.
• The Legend Fund: This loan fund investment program aims to help Indiana small business owners access small business loans by distributing money to local lenders. There is a focus on companies owned and controlled by members of historically underserved communities.
Recommended: Startup business loans
Indiana Microloan Lenders
The Indianapolis Chamber of Commerce’s Business Ownership Initiative and community-based nonprofits offer microloans of up to $50,000 to Indiana small business owners. In general, microloans can range from $500 to $50,000 and may be available to startups.
Indiana SMB Loans from Private Lenders
Banks, credit unions, and private lenders may offer different types of small business loans to Indiana small business owners.
Here are some of the funding products you may consider depending on your needs:
• Commercial real estate loans
• Small business loans for startups
• Working capital lines of credit
The Takeaway
There are a variety of grants available for Indiana small businesses, ranging from state or local governments to private businesses. It may take some research to find grants that match the description of your small business, but those are the ones you’ll have the best chance of winning.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
FAQ
How do you get an Indiana small business grant?
You can apply for Indiana small business grants, but there’s no guarantee you’ll get approved for one. You may have to submit a grant application as a qualified small business owner to be considered for an Indiana small business grant.
How hard is it to get a business loan in Indiana?
You may have difficulty getting an Indiana small business loan if you have bad credit or insufficient business experience. You generally have to pay back business loans with interest.
What is the easiest SBA loan to get approved for?
There’s no guarantee you’ll get approved for any SBA loan, but SBA microloans may be one of the easier ones to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50K. If you’re looking for a streamlined application process, SBA Express working capital loans are an option you may consider.
Can I apply for multiple grants in Indiana at the same time?
Indiana appears to have no universal rule about applying for more than one small business grant at the same time. Check each grant’s rules and eligibility requirements to see if multiple simultaneous applications are allowed.
Can minority-owned businesses in Indiana get special grant opportunities?
Hoosier entrepreneurs are eligible for national grants focused on minority-owned businesses, such as the NAACP’s national Powershift Entrepreneur Grant. Indiana-centric grants with this emphasis are harder to come by, but there are many Indiana procurement contracts for which minority-owned businesses are expressly encouraged to bid.
Photo credit: iStock/JLco – Julia Amaral
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