Indiana Community Business
Credit Corporation

Program Description

Indiana Community Business Credit Corporation, commonly referred to as the Credit Corp., is a privately owned company in which many Indiana financial institutions pool their money to share the risks of helping enterprises grow in our state. The Credit Corp. was organized in 1986 to meet the need for medium and long-term growth financing, and to supplement equity of promising firms which, for various reasons, do not qualify for such loans from conventional Lenders.

Credit Corp. loans are generally made to existing small and medium size companies which require a source of supplemental financing in order to meet growth needs. Only Indiana based companies or Indiana operations are assisted. Any business that can obtain the necessary funds on reasonable terms from a conventional financing source is not eligible for assistance from the Credit Corp.

Eligibility Criteria

Projects must have a primary member bank Lender involved with at least a 50% commitment for new funding. The Credit Corp. funding will be provided in a subordinate collateral position. This policy allows the Credit Corp. to leverage its funds and thereby assist the maximum number of companies. A list of member banks is attached.

The minimum loan size is $100,000 with the maximum loan size $500,000. Interest rates and terms will vary with individual circumstances. Targeted pricing is 18-22% made up of a current interest payments and transaction fees. Applications are priced according to individual risk.

Application Procedure

After an initial screening of the loan request and determination as to whether a Credit Corp. loan is appropriate, the following information must be submitted before formal approval can be considered.

Member bank commitment letter
Amount and type of loan requested and purpose of loan
A complete business plan
Three year operating history, including fiscal year-end statements and latest management interim statements
Profit/loss, cash flow forecasts for a minimum of two years
Accounts receivable aging, accounts payable aging, inventory description
Fixed asset appraisals where appropriate
Personal Financial Statements on principals and management resumes
Completed Business History Questionnaire (attached)
Executed Applicant Agreement Form (attached)

Loans are screened and processed at our office in Indianapolis. Management recommends approval of an application to the Loan Committee, which has the responsibility for making final loan decisions. The Loan Committee response can generally be obtained within 20 days of receipt of the complete package.

Applicant Tools

Application Checklist
Application Agreement
Business History Questionnaire

Resources

Program Description

Eligibility Criteria

Application Procedure

Applicant Tools