Half-Billion Dollars In Small Business Funding From Indiana Statewide CDC

A half-billion dollars in loans to Indiana small businesses. That's the historic mile-marker reached by Indiana Statewide Certified Development Corporation. The Indiana Statewide CDC partners with local lenders to provide financing from the U.S. Small Business Administration 504 program. Indiana Statewide CDC's half-billion dollars — or $500 million — contribute to loan packages totaling $1.25 billion, including funds from the partner banks and 10-percent down payment by borrowers. More than 1,200 small businesses have used the loans to buy property and equipment. They have created or saved over 15,000 Indiana jobs in manufacturing, technology, agriculture and services. A 504 loan targets owners who are starting or expanding their small firms, offering them a low, fixed interest rate and requiring a smaller down payment than conventional financing. Jean Wojtowicz founded Indiana Statewide CDC in 1983 and remains its executive director. She says, "Our strength is that we reach every part of Indiana with affordable SBA 504 financing, thanks to our local lending partners. We react quickly, do our homework, and tailor the loan to the business owner's needs." Indiana District SBA Director Stacey Poynter says, "Congratulations to Indiana Statewide for this tremendous accomplishment. Their team is dedicated to helping small businesses participate in the growth of this great state. They use the SBA 504 program in the way it is intended; to allow small businesses to get the most for their expansion and startup dollars." Recent borrowers from the 504 program demonstrate Indiana Statewide's reach and business diversity. They include; JIC/Crosspoint Polymer Technologies that recycles used plastics in Evansville; FasTrack Mechanical of Indianapolis that repairs home and commercial furnaces, air conditioners and plumbing; and Columbus Massage. The latter two capitalized upon significant local expansion opportunities, while Crosspoint Polymer seeks to crack larger national markets for polymer molded products. Dozens of Indiana banks have participated in SBA 504 loans with Indiana Statewide, including First Financial of Evansville, Huntington Bank and German American Bank in those three. Paul Freeman is executive vice president of the Indiana Bankers Association and a member of the Statewide CDC Board. Freeman says, "The SBA 504 program is a great product to help our member banks serve their borrowers and communities. The IBA values our partnership with Indiana Statewide CDC in providing an important tool that allows our members to give small businesses a chance to prosper in Indiana." Most SBA 504 loans save or create jobs in local communities. An example of such home-grown success is SaverSystems. Richmond firefighter and chimney sweep John Meredith started SaverSystems 30 years ago when he noticed crumbling and cracked masonry that needed restoration. SaverSystems makes waterproofing and masonry compounds for buildings. A recent 504 loan from Indiana Statewide CDC and First Merchants Bank helped Meredith buy a building and expand his 30-person payroll to manufacture high-temperature coatings SaverSystems developed for use in fireplaces and chimneys. Background: Indiana Statewide CDC has provided more than $500 million to over 1,200 Indiana companies since 1983, creating or saving15,000 jobs, and is the most prolific CDC in Indiana. Indiana Statewide CDC Executive Director Jean Wojtowicz says, "The SBA guarantees bonds sold privately to finance a portion of the loan. With the guarantee, we offer loan rates more favorable than conventional financing. SBA 504 loans help small businesses grow because borrowers may put as little as 10 percent down and receive a low, fixed interest rate for as long as 20 years."