Indiana has about 530,000 small business owners who 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 $494.8 billion as of 2023. That’s the 19th largest GDP in the United States out of the 50 states and the District of Columbia. Small businesses contribute to the nation’s economy.
Below we highlight some of the top small business grants in Indiana that you can explore.
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 of Indianapolis (FHLBI) Elevate Grants
• Program description: FHLBI 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:
◦ Partner with an FHLBI member institution
◦ Be a small business owner based in Indiana or Michigan
◦ Be active in business for at least 12 months
◦ Have average annual gross revenues of less than $1 million
• How to apply: Work directly with an FHLBI member institution to apply when the annual application opens.
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 up to $20,000 for making visual enhancements in downtown South Bend and up to $112,000 for implementing an advanced sustainability project in select corridors.
• General requirements: Any business in South Bend may be eligible for a Vibrant Places matching grant, and 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.
Michigan City Urban Enterprise Association (MCUEA) Business Grant Program
• Program description: The MCUEA offers grants to eligible business owners who make exterior and interior improvements to their brick-and-mortar commercial establishments in Michigan City, Indiana.
• Incentive: Eligible businesses in the Michigan City Urban Enterprise Zone can receive up to $7,500 in reimbursements for making capital improvements.
• General requirements: You generally need to operate a business within the Michigan City Urban Enterprise Zone for a minimum period of one year to qualify for this grant.
• How to apply: Contact the Michigan City Urban Enterprise Association for information on when the business grant application opens.
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 per category:
◦ Receive a Curb Appeal Grant of up to $5,000 for improving the appearance of your residential or commercial property within the hilltop target area
◦ Receive a Rehabilitation Grant of up to $7,500 for rehabbing your downtown historic property
◦ Receive a Dangerous Buildings Grant of up to $10,000 for the full demolition of an unsafe property within the city of Madison
◦ Receive a Dilapidated Structures Grant of 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
◦ Provide willingness to execute all legal agreements
◦ Properties which previously received PACE grant funds are not eligible for additional funding for two years following the previous grant’s final disbursement of funds
• How to apply: Contact the PACE Review Committee or Madison’s Planning Department if you’re interested in applying.
Downtown Danville Partnership Façade Improvement Grant Program
• Program description: Downtown businesses in Danville, Indiana, 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
◦ Your business is located within the boundary of Clinton, Kentucky, Broadway, and Wayne streets
◦ Receive design approval in advance from the Town of Danville’s Design Review Committee
• How to apply: Go to the Downtown Danville Partnership website to submit your application online.
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 typically 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.
What Industries Does Indiana Support With Grants?
Indiana offers a variety of grants supporting the following industries:
• Agriculture
• Food services and drinking places
• Hair, nail, and skin care services
• Landscaping services
• Restaurants and other eating places
• Retail trade (store and nonstore retailers)
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:
• Access to market research reports at no cost
• Confidential 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.
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 SSBCI 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 State Small Business Credit Initiative program.
Here’s how Indiana plans to use the SSBCI funding:
• Indiana Angel Network Fund — $70.4 million. This program will help eligible startups access venture capital in the Hoosier State. It provides equity capital directly to startups through the Indiana Angel Network Fund alongside co-investors. Investments from the Indiana Angel Network may be made up to $1 million per company and typically require a minimum 1:1 co-investment.
• Indiana Loan Fund Investment Program — $28.7 million. This program can help Indiana small business owners access small business loans. This includes Indiana small businesses with fewer than 10 employees and firms owned and controlled by socially and economically disadvantaged individuals.
Indiana Microloan Lenders
Community-based nonprofits may 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
• Equipment financing
• 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.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today 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.
Photo credit: iStock/JLco – Julia Amaral
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