Hamilton County Small Enterprise Loan Fund
Hamilton County Small Enterprise Loan Fund (SELF) Available
Hamilton County has been awarded a grant from the USDA. The grant was successful due to the cooperative efforts of the Entrepreneurship Advancement Center, the Hamilton County Convention & Visitor’s Bureau, the Hamilton County Alliance.
Purpose. The purpose of the Hamilton County Small Enterprise Loan Fund (SELF) is to provide loans to deserving entities that will result in jobs creation or retention and also that will contribute to the economic development or stability of the area.
Eligibility. The SELF can be utilized by loan recipients for fixed assets, working capital and cash flow in the areas of manufacturing, commercial, retail, agricultural, service or tourism. Potential borrowers must be located in the rural areas designated eligible by the federal government of Hamilton County and must be clients of the Central Indiana Small Business Development Center.
Limits. The maximum loan to any one individual or business is $40,000. Private financing is to be sought first, however, and the borrower must demonstrate at least a 10% investment into the project.
Terms. The minimum interest rate can be no lower than 4% below the current money center prime rate as quoted by the Wall Street Journal, but not less than 4%. Interest rates and length of repayment will be decided at the time loans are made and the SELF Board will take second (subordinate) positions on all available assets.
Application Process. Potential borrowers must have a business plan and adequate projections for purposes of review by the SELF Board and are required to fill out the application as completely and comprehensively as possible.
Ineligible Activities. Speculative activities such as land banking, and construction of speculative buildings are not eligible for funding from the SELF Fund. Also, loans which are to assist a borrower in moving from one area to another are not eligible activities. Loans will not be made for investment purposes in high interest accounts, certificates of deposits or other investment purposes not related to jobs creation or retention. Loans with “conflicts of interest” will also not be entertained.
Contact. If you are interested in applying for a SELF loan, please click here to complete an interest form and to find out if your business is in an eligible area. Other inquiries may be directed to Cathy Langlois at (317) 813-5413 or Cathy@goentrepreneurs.org
Venture Capital Tax Credit Program–Worth Checking Out
The Indiana Economic Development Corporation has an excellent program available to start-ups or early-stage businesses that are looking for ways to attract investor capital. It is called the Venture Capital Investment (VCI) Tax Credit. The program rewards new investors in “qualified companies” by pre-approving them to receive a 20% state tax credit on every dollar they invest up to $2.5M.
This is an excellent opportunity to improve your offer to investors. The state provides a letter of approval before an investor commits so there is no risk to the tax credit. The business owner submits a letter to the state verifying the investment and the state sends the investor a tax credit document to attach to their tax return. What a great offer to your investors. Check it out!
