Hamilton County Small Enterprise Loan Fund (SELF) Available

Hamilton County has developed a low interest revolving loan fund for small businesses in Hamilton County. The loan fund is a cooperative effort between 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