Finding A Business Loan In Indiana
Indiana Finance Authority
Indiana Finance Authority (IFA) has numerous business solutions in its kitty to help the small business owners to begin their operations. These programs are aimed at the economic development of Indiana and creation of jobs in it so that the employment levels are raised. Some of the funding programs offered by IFA are as follows:
Pilot Shovel Ready Program (PSRP)
PSRP is responsible for providing financial assistance to the communities that have ‘ready for development’ certification. It helps the new businessmen to develop sites quickly, so that they can survive the increasing competition in the business environment. This contributes to the economic development, and creates more jobs.
PSRP also certifies sites to enable the companies to navigate and select easily. It also gives the companies necessary permission required to develop particular sites related to the business. The program has successfully developed a fast track system within the state by giving business access to local, federal, and industry specific permits. It can grant up to $10,000 to he businesses upon the conformation of their eligibility.
Volume Cap Program (VCP):
Indiana has the capacity of issuing VCP amounting to $501 million. VCP is generally known as private activity bonds that are awarded to the business owners depending on how many jobs they create within a stipulated time and their capacity to retain employees. Their eligibility is also measured on parameters such as their ability to invest capital in a project, location of the project, and their dedication towards it.
Tax-Exempt Bond Program (TEBP):
TEBP issues revenue bonds, 501(c)(3) bonds, and refunding bonds on a monthly basis. When the private activity bonds exceed $2 million, they are known as bonds for industrial revenues or industrial development bonds. Interest component on such bonds are generally federal tax income exempted. This results in low interest rates over the long-term for the borrower. It is advisable the borrowers check with their lenders to find out whether they are eligible for availing such bonds.
Capital Access Program (CAP):
CAP in involved in creation of cash reserve funds for all the participating lenders. The lenders can use such funds as additional collaterals against the loans availed from a CAP Program. Lenders are allowed to make riskier loan schemes that may not qualify the normal lending requirements.
CAP necessitates contribution of a percentage to the lender’s reserve fund by the borrowers, lenders, and IFA itself. Factors such as loan make, interest rates, and the lender decides the terms of the loan agreement. According to the industry estimates, CAP has enable lenders to make more than 3100 loans that add up to a surplus of $150 million.
