Financial assistance.

• Position: Whom to call: assistance for small businesses

FIXED-ASSET FINANCING

Certified Development Companies

This program features long term, fixed-rate financing for small business expansion. Financial institution must provide half of the project amount, the CDC, up to 40 percent, and the business a minimum of 10 percent. Minimum project size is $125,000. The CDC's portion may go up to $750,000.

Statewide: Indiana Statewide Certified Development Corp. 317/844-9810 Indianapolis area: Premier Capital Corp. 317/974-0504 St. Joseph County: Business Development Corp. 574/235-9278 Allen County: Community Development Corp. 260/427-1127 Northwest Indiana; Northwest Indiana Regional Development Corp. 219/763-6303 Industrial Revenue Bonds

Private Activity Bonds, often called Industrial Revenue Bonds, or IRBs, are bonds issued by state or local governmental entities for the benefit of a private company. Interest on the bonds is generally exempt from federal income taxes for investors, which typically results in lower long term interest rates to the borrower. The IDFA can issue bonds to finance qualified manufacturing facilities and equipment, pollution control facilities and other projects permitted under federal law. Manufacturing companies can save significant interest costs by using tax-exempt bonds to finance equipment purchases, land acquisition and construction. The IDFA can also issue tax-exempt bonds for certain 501(c)(3) entities, including child care facilities, educational and cultural institutions. 317/233-4332

Home Page www.in.gov/idfa

GUARANTEE PROGRAMS

Agricultural Loan and Rural Development Project Guaranty Fund

The IDFA can guarantee loans for rural development projects, value-added agricultural enterprises and other types of businesses that create or retain a significant number of Hoosier jobs. The maximum guaranty is $300,000. The IDFA can use its Guaranty Program to partner with other participants, reducing the lender's overall exposure.

Indiana Development Finance Authority 317/233-4332 Home Page www.in.gov/idfa Business and Industry Guaranteed Loan Program

Rural Development guarantees loans made by eligible lenders to businesses to benefit rural areas. Rural Development guarantees up to 80 percent of the original loan amount, which can be up to $25 million. Under certain circumstances, up to 90 percent may be guaranteed. Any legal entity is eligible, including individuals, and both start-up and existing businesses may qualify to finance the purchase and development of land, the purchase of equipment and supplies, to provide working capital, or to refinance existing debt, among other eligible loan purposes. 317/290-3109

CAPLines

CAPLines offers five types of loans to finance the short-term, cyclical working-capital needs of small businesses. Under this program, loan proceeds generally will be advanced against a borrower's existing or anticipated inventory and/or accounts receivable. CAPLines include: Seasonal, Contract, Builder's, Standard Asset-Based, and Small Asset-Based lines. The SBA generally can guarantee up to $2,000,000.

U.S. Small Business Administration 317/226-7272 SBA Home Page www.sba.gov Export Working Capital Program

The EWCP provides short-term financing to small businesses for export-related transactions. Proceeds from the export sales are the primary source of repayment. Under the EWCP, the SBA guarantees up to 90 percent of a secured loan or $2,000,000, whichever is less. Typically, maturities match a single transaction cycle with a term of up to 18 months, or support a line of credit with a term of up to 12 months.

Indiana District Office 317/226-7272 SBA Home Page www.sba.gov Guaranty Loan Program, 7(a)

The SBA's primary business loan program guarantees loans to small businesses that cannot obtain financing on reasonable terms through other channels. Loan proceeds may be used for business start-ups, expansion, equipment purchases, working capital, inventory, or real-estate acquisition. Generally, the SBA can provide guarantees up to $750,000 on a private-sector loan; as much as 80 percent on loans of $100,000 or less, and 75 percent on loans of more than $100,000. The interest rate may not exceed 2.75 percent over the prime lending rate, except for loans under $50,000, where rates may be slightly higher. Maturities can extend up to 10 years for working capital and 25 years for fixed assets.

Indiana District Office 317/226-7272 SBA Home Page www.sba.gov Loan Guaranty Program

The IDFA can guarantee loans for high-growth/high-tech companies, manufacturers, and other types of businesses that create or retain a significant number of Hoosier jobs. The Guaranty Program is flexible and can be tailored to meet the needs of many Indiana businesses. The guaranty is often used creatively in conjunction with other funding sources and enhancement programs. The guaranty may be as high as 90% of the principal balance of the loan, depending on the collateral and capacity of the fund.

Indiana Development Finance Authority 317/233-4332 Home Page www.in.gov/idfa Low Doc Loan Program

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