BUSINESS FINANCING · IN

Business Financing Guide for Elkhart County, Indiana

This guide helps solo contractors, small business owners, and real-estate investors in Elkhart County, Indiana understand their financing options. It focuses on local lenders, community development financial institutions (CDFIs), credit unions, and ITIN-friendly lenders that actually serve this region. Federal programs like SBA loans are included as helpful context, but the real value is in the local intermediary layer — the people and organizations in your community who can walk you through the process in person.

§ 01 — What it is

What Is Small Business Financing?

Small business financing is any loan, line of credit, grant, or investment that helps you start, run, or grow a business. In Elkhart County, this can mean a loan to buy equipment for a manufacturing shop, funding to purchase a rental property in Goshen or Elkhart city, or a working capital line of credit to keep a solo contracting business moving between jobs. Financing comes in several forms: - **Term loans** — You borrow a fixed amount and repay it over a set period, usually with monthly payments. - **Lines of credit** — You draw money as you need it, up to a limit, and repay what you use. Good for covering gaps between invoices. - **Equipment financing** — The equipment itself serves as collateral. Common in Elkhart County's manufacturing and RV supply sectors. - **Microloans** — Smaller loans (often under $50,000) offered by CDFIs and nonprofits, with more flexible qualification criteria than banks. - **SBA-backed loans** — Loans made by local banks and credit unions but partially guaranteed by the U.S. Small Business Administration, which helps lenders approve borrowers who might not qualify for a conventional loan alone. - **Grants** — Money you do not repay, typically from government agencies or foundations. Competitive and often tied to specific industries or demographics. Understanding what you need the money for — and for how long — is the most important first step before talking to any lender.

§ 02 — Who qualifies

Who Qualifies? Elkhart County's Local Economy

Elkhart County is one of the most economically active counties in Indiana. It is the RV manufacturing capital of the world, with a dense network of suppliers, fabricators, contractors, and distributors. The county also has a significant Latino and immigrant workforce and business community, especially in Goshen, which has a growing number of Latino-owned small businesses and sole proprietorships. **You may qualify for business financing if:** - You have been operating your business for 6–24 months (requirements vary by lender) - You can show some business revenue, even if modest - You have a business bank account or are willing to open one - You have a Social Security Number (SSN) **or** an Individual Taxpayer Identification Number (ITIN) — several local and regional lenders accept ITIN borrowers - You have a specific, explainable use for the funds **Industries well-served by local financing in Elkhart County:** - RV parts manufacturing and fabrication - General contracting and construction trades - Auto repair and mobile mechanics - Landscaping and lawn care - Restaurant and food service - Residential real estate investment and rental property - Childcare and home-based services You do not need perfect credit to start the conversation. Many CDFIs and credit unions in the region work with borrowers who are rebuilding credit or have limited credit history.

§ 03 — What you need

Documents You Will Typically Need

Every lender is different, but gathering these documents before you apply will make the process faster and less stressful. **For most small business loans:** - Government-issued photo ID (driver's license, passport, or consular ID / matrícula consular) - ITIN or SSN - Last 2 years of personal tax returns (business returns too, if you have them) - 3–6 months of bank statements (personal and/or business) - Proof of business registration (DBA certificate, LLC articles, or business license from Elkhart County or the State of Indiana) - A simple business plan or written description of what you do and how you will use the loan - Profit-and-loss statement or income summary (your bookkeeper or accountant can help prepare this) **For equipment financing:** - Quote or invoice for the equipment you want to buy - Any existing business financial statements **For real estate / rental property loans:** - Purchase agreement or property address - Rent rolls (if the property already has tenants) - Most recent mortgage statement (if refinancing) - Property insurance documentation **Tip:** If you are a sole proprietor or independent contractor, your personal tax returns are often the main financial document lenders look at. Keep them organized and filed on time each year.

§ 04 — Where to start in Elkhart County

Local Lenders, CDFIs, and Resources That Serve Elkhart County

These are real organizations with a presence in or near Elkhart County. This list is a starting point — Origen Capital is a directory, not a lender, and does not receive referral fees. **Community Development Financial Institutions (CDFIs):** - **Horizon Bank – Community Lending** (Michigan City, IN, with regional reach): Horizon Bank participates in SBA lending and has served northern Indiana small businesses for decades. Ask specifically about their small business and SBA loan officers. - **Lighthouse Financial** (a CDFI operating in northern Indiana): Offers microloans and small business loans for entrepreneurs who may not qualify at traditional banks. Often works with borrowers with limited credit history. - **Indiana SBDC – Northeast Region** (housed at Ivy Tech Community College, South Bend): Free one-on-one business advising and loan-readiness counseling. This is an excellent first stop before applying anywhere. Phone: (574) 282-4350. **SBA District Office:** - **SBA Indiana District Office** (Indianapolis): Covers all Indiana counties including Elkhart. They maintain a lender-match tool at sba.gov/lendermatch that connects you with SBA-approved lenders serving your zip code. For local help, the Indiana SBDC network (above) acts as the on-the-ground interface. **Local Credit Unions (member-owned, lower fees):** - **FORUM Credit Union** (statewide Indiana, branches accessible to Elkhart County residents): Offers small business accounts and loans to members. - **Interra Credit Union** (headquartered in Goshen, IN): Serves Elkhart County directly. Offers business checking, business loans, and lines of credit. Member-owned and community-focused. Phone: (574) 534-2506. Website: interracu.com - **Notre Dame Federal Credit Union** (South Bend, serves broader region): Business lending available to eligible members in the region. **ITIN-Friendly and Immigrant-Serving Lenders:** - **Accion Serving Illinois and Indiana** (regional CDFI): Specifically designed to serve small business owners who are immigrants, have ITIN numbers, or have limited credit history. They offer microloans and small business loans and have Spanish-speaking staff. Website: accionchicago.org (serves northern Indiana including Elkhart County). - **LiftFund** and **Accompany Capital**: National CDFIs that accept ITIN borrowers and serve underrepresented entrepreneurs — worth checking if local options are exhausted. **State-Level Programs Worth Knowing:** - **Indiana Economic Development Corporation (IEDC)**: Administers various small business grant and loan programs. Visit iedc.in.gov to check current offerings. - **Elevate Ventures**: Indiana-based organization that supports early-stage businesses with capital and mentorship, especially in growth industries. - **Indiana Minority Business Development Center**: Assists minority-owned businesses with financing access and capacity building. **Local Economic Development:** - **Elkhart County Economic Development Corporation (EDC)**: A local resource for businesses looking to start or expand in the county. They can connect you with local incentives and refer you to appropriate lenders. Website: elkhartcountybusiness.com

§ 05 — What to avoid

Indiana State-Specific Regulatory Notes

Understanding Indiana's rules helps you avoid surprises and stay compliant. **Business Registration:** - If you operate under a name other than your own legal name, you must file a **DBA (Doing Business As)** with the Elkhart County Recorder's Office or register your LLC or corporation with the **Indiana Secretary of State** at inbiz.in.gov. - LLCs in Indiana pay a $95 biennial report fee to the Secretary of State. **Contractor Licensing:** - Indiana does not have a single statewide general contractor license. However, electrical, plumbing, HVAC, and other specialty trades require state or local licensing. Elkhart County and local municipalities (Goshen, Elkhart city) may have their own permit requirements. Always confirm with the local building department before starting work. **Usury and Lending Laws:** - Indiana's consumer lending laws cap interest rates for certain loan types, but **commercial loans** (made to a business entity, not a person) are generally not subject to the same interest rate caps. This means rates on business loans can vary widely — always compare Annual Percentage Rate (APR), not just the monthly payment. **Tax Identification:** - Indiana requires businesses to register for state taxes via the **Indiana Department of Revenue** (intime.dor.in.gov). This includes sales tax if you sell goods, and withholding tax if you have employees. **Prevailing Wage:** - Contractors working on public projects in Indiana should be aware of the **Indiana Common Construction Wage** rules. Ask the contracting agency before bidding. **ITIN Note:** - Indiana state law does not prohibit lending to ITIN holders. If a lender tells you that you cannot borrow because you do not have an SSN, ask specifically whether they work with ITIN borrowers — or seek out a CDFI that does.

§ 06 — Ask a question

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