IndyPawn refinances purchase of its building — "the largest pawn shop in the Midwest" — with SBA 504 loan from Lake City Bank and Indiana Statewide CDC

Erik Botts, the owner of Indy Pawn in Lawrence (on Indianapolis' far northeast side), solidified the purchase of the large pawn shop's building with a refinance loan from the U.S. Small Business Administration 504 program. Lake City Bank and Indiana Statewide Certified Development Corporation provided the SBA 504 loan to Indy Pawn. Botts used it to refinance his existing commercial loan and gain a lower, fixed long-term interest rate on new financing. Indiana Statewide CDC works with local Indiana lenders to issue SBA 504 loans to help owners of expanding or startup small businesses buy real estate, buildings and equipment. Small companies gain favorable financing terms with SBA 504 loans similar to those available to large companies. Botts says, "The SBA 504 loan really changed my world. It allowed me to grow my business and not worry about the financing so much. It was a good experience." Lake City Bank's Ryan Hart says, "The long-term, fixed interest rate is a great feature of the SBA 504 loan and is great for Erik. The loan helps the bank lend to a strong borrower in an industry that may otherwise be difficult to lend to." Botts describes Indy Pawn as the "largest pawn shop in the Midwest." It pays cash and resells tools, musical instruments, electronics and a variety of other merchandise. Most in-person customers at IndyPawn's rambling store in the 7900 block of Pendleton Pike in Lawrence are from Central Indiana. On-line sales attract customers from all 50 states, Botts says. IndyPawn employs 15 people, including five hired in the last two months since Botts received his loan. Botts bought IndyPawn from a business partner in 2010. Background: Indiana Statewide CDC has provided more than $500 million to 1,200 Indiana companies since 1983, creating or saving more than 15,000 jobs, and is the most prolific CDC in Indiana. Lake City Bank (www.lakecitybank.com), founded in 1832, is a $4.4 billion bank headquartered in Warsaw, Indiana and is the fourth largest bank headquartered in the state, and the largest bank 100% invested in Indiana. Lake City Bank operates 49 branch offices in northern and central Indiana. Indy Pawn (www.indypawnsuperstore.com) is the Midwest's largest pawn shop. It pays cash and resells jewelry, tools, musical instruments and electronics, plus a wide variety of other merchandise.