10 Best Small Business Loans in Indiana


Indiana small business lenders are go-to resources for business capital for numerous needs.

Key Terms

  • Small business loans are a common way for companies to raise funds at all stages of their establishment and growth.
  • Small business loans may help organizations fund growth and expansion or may be a necessary tool to refinance existing debt.
  • Lenders take on risk when providing small business loans, which is why credit scores are important, and why many lenders charge an interest rate higher than other loans.

Indiana is a Midwestern state and sits on Lake Michigan and is bordered by the Ohio River. In the heart of the country, there are 6.7 million people who live in the state. A diverse place to live with a wide range of affluent and urban areas, the Hoosier State is a vibrant community. It is known for many things, from its passion for basketball, its vast farmland, the Indy 500, and its steel mills. Much of the heart of the state is farmland dominated by corn crops, but there’s much more to this area. Numerous beautiful parks, exceptional amenities on the waterfront, and modern shopping and dining all help to create an excellent place to call home.

Indiana also has a diverse economy, one that is dominated by energy production, agriculture, and manufacturing. Its largest industries center around motor vehicles and parts, pharmaceutical products, and medical equipment. A number of large companies call the state home, such as Simon Property Group and Go Electric.

While these companies make up a big portion of the state’s economic force, it is impossible to overlook the size and scale of the small businesses here as well. The U.S. Small Business Administration states there are 534,460 small businesses in the state, a very large number. These companies provide jobs for 1.2 million people and generate a payroll of $126,948,519. Many households are dependent on those businesses.

To support that business growth, there is a need for small business lenders in Indiana. The most recent three years of data from the Small Business Administration shows there are 3,422 active small business loans in the state with a total loan volume of $1,849,070,255. These lenders offer loans for many needs, and the current average loan size is $54,348. Companies rely on access to this type of capital to help them to grow and develop. It is also designed to provide them with financial resources for expansion, which further helps to support the local economy.

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How small business loans work in Indiana

A small business loan is a type of infusion of capital. Lenders provide the loan either as a one time payment or as a line of credit for the company to use for a variety of needs. These loans create a significant amount of risk for the lender, which is why there is interest on them. Small businesses, which are typically companies with under 100 employees, are often able to apply for these loans based on their needs. Lenders will then offer various terms and conditions. Borrowers repay the loan over a period of time, usually up to 10 years, with interest applied.

There are many loan options out there, including ones from economic development programs, real estate loans, microloans, business funding from credit unions and financial institutions, and more. You may also be eligible for small business grants or nonprofit grants depending on the structure and aim of your organization.

If you have your own business as an entrepreneur or nonprofit founder, make sure you meet all the eligibility requirements for a grant or loan before starting your application. You can look into additional business funding through your local community development office or the Indiana Small Business Development Center, too, if you need referrals to all programs.

How affordable are small business loans in Indiana? This really depends on the type of loan, the type of lender, and the qualifications for the business. It is very common for small business lenders to have some flexibility in what they offer. Small business lenders often will look at as much financial information about the company as possible to determine if they should lend.

This includes the company’s business plan, which should outline the company’s ownership, management, financial structure, revenue, as well as its products and services. A breakdown of the industry and the company’s overall profitability helps to show lenders if the loan is a financially reasonable one.

Small business lenders in Indiana often offer a range of loan types as well. This includes lines of credit from which a business may be able to borrow and repay over a period of time (working much like a credit card). This can provide financial support when it is needed, such as during peak periods in seasonal businesses.

Other times, larger loans are often provided as a way to help fund bigger investments, such as opening new locations, creating new products, launching marketing campaigns, or taking on new employees. These loans may have a fixed or adjustable interest rate and often require repayment in 5 to 10 years with monthly payments. Some of the most common types of loans include:

  • Bank loans
  • SBA loans from SBA.gov
  • Business term loans
  • Business lines of credit
  • Equipment financing

Small business lenders in Indiana provide these very valuable loans to qualified borrowers. Yet, borrowers also need to know where to go to get the funding and to work with the most trusted lenders available.

Small business owners might seek out a loan for a number of reasons, including to buy real estate, expand their existing operations, or for other business needs in the state of Indiana. Each loan application comes with its own requirements and needs, so doing your research is well worth it as you think about all your business financing options.

10 Biggest small business loan lenders in Indiana

Indiana small business loan lenders ranked by loans issued in the state.

RankBank Name# of Indiana LoansAvergage Interest RateAverage Loan Size
1The Huntington National Bank2925.49%$215,159
21st Source Bank935.34%$224,373
3Centier Bank775.17%$209,278
4Old National Bank534.43%$875,726
5German American Bank434.56%$324,646
6Merchants Bank of Indiana365.32%$1,047,839
7KeyBank355.41%$733,717
8First Financial Bank314.70%$421,771
9Live Oak Banking Company255.42%$1,412,400
10First Federal Savings Bank225.18%$871,250

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1. Huntington National Bank

Founded in 1866 and based out of Columbus, Ohio, with branches in 11 states and $179 billion in assets to meet its customers’ needs, Huntington National Bank has much to offer. The Huntington National Bank has a number of products and services to meet personal and business banking needs.

We reached out to Huntington National Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • SBA Preferred Lender
  • Offers the SBA 7(A) Loan Program, SBA 504 Loan Program and SBA Express.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

2. 1st Source Bank

1st Source Bank was started in 1863 in South Bend, Indiana, and currently has over 90 places to perform banking needs in Indiana and Michigan. 1st Source Bank offers a number of products for business and personal banking needs, including loans, checking and savings accounts, among other items.

We reached out to 1st Source Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • Certified as a Preferred Small Business Administration Lender
  • Experienced with navigating the application process and getting the right option for you.
  • 2021 Indiana SBA Community Lender ‘Gold Level Award’ winner.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

3. Old National Bank

Old National Bank was started in 1834 in what is now Evansville, Indiana, to provide financial solutions for the residents of the community. With over 160 years in business, Old National Bank now has over 250 banking centers with headquarters in Evansville and Chicago and over $46 billion in assets.

We reached out to Old National Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • SBA Preferred Lender
  • Top 75 Preferred Lender according to Small Business Association
  • Offers the SBA 7(A) Loan Program, SBA 504 Loan Program and SBA Express.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

4. German American Bank

Started in 1910 in Jasper, Indiana, German American Bank now serves the areas of southern Indiana and Kentucky with a number of branches. With over 40 locations now available to serve from the small roots of starting with just 2 employees, German American Bank provides all banking services.

We reached out to German American Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

5. Centier Bank

Based in Indiana, Centier Bank has 58 locations in 11 counties to help assist its customers with all of their banking needs. With $5.9 billion in assets, Centier bank can offer a number of loan products as well as personal and business checking and savings items.

We reached out to Centier Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

  • Offers SBA 7(a) loans and SBA 504 loans
  • Loan amounts up to $5 million for SBA 7(a) loans and up to $6.5 million for SBA 504 loans
  • Business income must be below $15 million and average net income below $5 million

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

Other resources for small businesses in Indiana

Small business loans are a valuable resource to support business growth and development. Yet, Indiana small businesses also need access to resources to help support their growth and development. That is where a few free resources can come in handy.

The Small Business Administration in Indiana is a good option for most businesses. This organization provides informative articles and hands-on support for a range of needs, such as business formation, setting up the business, paying employees, and managing company growth. There are local SBA offices, but their website is also packed with valuable information that companies can use immediately.

Another valuable resource is SCORE, a business resource that is designed by business experts to provide advice and guidance to younger, growing, and even startup organizations. There is a library of available data on the website, or you can take a workshop. Even better, there are local mentors you may be able to work with to gain education and experience. With a main office in Indianapolis and a website packed with resources, this is an exceptional, free resource for companies.

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Joshua Holt

Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.

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