Indiana Statewide Certified Development Corporation provided more than $28 million to Indiana small businesses in fiscal year 2017 (ending September 30), the second highest total in the Statewide CDC’s 34 year history!
Indiana Statewide CDC works with local Indiana lenders to issue loans from the U.S. Small Business Administration 504 program to help owners of expanding or startup small businesses buy real estate, buildings and equipment. Small companies gain favorable financing terms with SBA 504 loans similar to those available to large companies.
In 2017, 39 companies received the $28 million in funding in SBA 504 loans from Indiana Statewide CDC .Total investment in those projects reaches about $72 million when bank loans and business owners’ down payments are included. The 39 projects created or saved about 440 jobs.
Indiana Statewide CDC Executive Director Jean Wojtowicz says the best year for funding was 2008 when her company provided over $33 million to 55 Indiana companies. “The recession hurt small business financing for about three years. But since then, the appetite has been steadily increasing for loans as small business owners find their footing and either expand or open new ventures. Overall, Indiana has a strong entrepreneurial culture,” she says.
The fiscal year 2017 results announced by Indiana Statewide CDC are for loans actually funded. During the same 12 months, Indiana Statewide CDC approved 36 loans for $27.7 million. Some of those loans were also funded and the remainder will receive their funds during Fiscal Year 2018. “Our pipeline of loan projects is very full, thanks to our loan partners and small business owners with ambitious plans for their futures,” Wojtowicz says.
Earlier this year, Indiana Statewide CDC became Indiana’s first SBA 504 lender to fund more than a half-billion dollars ($500 million) to more than 1,200 Indiana small businesses.
Indiana Statewide Certified Development Corporation (www.cambridgecapitalmgmt.com) has funded over one-half billion dollars ($500 million) to more than 1,200 Indiana small companies since 1983. Those loans total $1.25 billion in investments including the banks’ portion of the loans and borrowers’ down payment. The loans created or saved more than 15,000 jobs.
Jean Wojtowicz, executive director of the Indiana Statewide CDC, says, “SBA 504 loans work because borrowing companies can put as little as 10 percent down and can receive a low, fixed interest rate for as long as 20 years.”