Indiana Statewide CDC leads state in SBA 504 small-business loans

Indiana Statewide Certified Development Corporation is the state's top small-business lender from the SBA 504 program this year. SBA 504 loans give owners of small businesses affordable financing aimed at helping them succeed. Indiana Statewide provided 50 loans totaling $35.8 million to companies across Indiana, creating or saving approximately 550 jobs. More than 20 Indiana banks participated with Indiana Statewide on the loans. These projects totaled more than $90 million when taking into account the bank portion and the borrower's down payment. Companies receiving the loans include small manufacturers, software engineers, medical and law practices, retail and service providers. Indiana Statewide's leading figures are for Federal Fiscal Year 2018 that ended September 30. The U.S. Small Business Administration recently released the totals for the state's 504 loan activity. All together, eight CDCs made 160 loans for a total of over $97 million in 504 financing in 2018. Indiana Statewide CDC works with local lenders to provide SBA 504 loans. Indiana Statewide CDC Executive Director Jean Wojtowicz says, "SBA 504 loans help small businesses grow because borrowing companies can put as little as 10 percent down and receive a low, fixed interest rate for as long as 25 years. The rate is more favorable than generally available to small businesses because the SBA guarantees bonds sold privately to finance a portion of the loan." She says, "We appreciate our bank lending partners who spot small companies in their market areas that can grow using SBA 504 loans. It's a nationwide program that hinges on local relationships." Wojtowicz adds that tax cuts are encouraging small-business owners to open or expand their companies. Also, owners want to lock in a stable long-term repayment rate ahead of rising federal interest rates. Background: Indiana Statewide CDC has provided more than $515 million to 1,240 Indiana companies since 1983, creating or saving more than 15,000 jobs, and is the most prolific CDC in Indiana.