Small business grants in Indiana

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Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.

If you’re an Indiana business owner in need of funds, small business grants could be your solution. Provided by government departments, corporations, foundations and other organizations, business grants are effectively free money. There’s no need to repay the funds if you spend them where you said you would.

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How do I get a small business grant in Indiana?

Small business owners and entrepreneurs in Indiana can improve their chances of winning a business grant by preparing in advance. Key tasks to take care of include:

Identify your need for the grant. Why do you need the money? What will you use it for? You must present a strong case for funding to secure a business grant. No matter if you want to start a business, grow an existing company, conduct research or undertake a creative project, having a clear vision of what you wish to achieve with the grant money is crucial.
Search for suitable grants. Once your goals are set, you can search for grants that fit your mission objectives. Identify the qualification rules, time limits and any restrictions that may apply.
Prepare your application. Few grant programs are the same. As well as the application forms, grantors may also ask you to provide a presentation deck, submit endorsements, create a financial plan, or write a detailed grant proposal. Make sure your ambitions are clear. Point out the benefits that receiving an award will deliver for your business, your community and everyone your venture will engage with. Be positive but maintain feasibility. This is your opportunity to present your case for funding in the best possible light.
Submit your application. Check the submission guidelines – online, hard copy, or both, and submit your grant application well in advance of the posted deadline in case there are last minute issues with receipt.
Wait for a decision. Be patient. Grantors are often inundated with applications and the review process of all submissions can take time. However, you should at least follow up with the grantor to ensure your application was received and is being processed. You could also use this time to search for other funding options in case your application is not successful.

Types of grants for small businesses in Indiana

Covering everything from technical development to farming and urban renewal, Indiana provides a range of small business grants for qualifying businesses. Here are just a few to get you started:

Innovation Voucher: Fostering creativity and development

Offered by the Indiana Applied Research Institute (ARI), Innovation Vouchers can be used to leverage Indiana’s research and higher education institutions to give more small businesses access to industry experts and research leaders. The grant provides matching funds up to $50,000 and can be utilized for product development, simulations and studies to help entrepreneurs in Indiana develop innovative products and services. These grants are awarded three times per year.

Conexus Indiana: Manufacturing readiness grant

Conexus Indiana – Manufacturing Readiness Grants are designed to help manufacturers make innovative capital investments in smart manufacturing within their Indiana operations. That means everything from leveraging technologies in advanced communications, to cobots, to the Industrial Internet of Things (IIoT) and beyond. So far, the fund has made over 500 grant awards and distributed more than $57million to businesses across 79 Indiana counties.

US Grants – Indiana

US Grants is a one-stop portal to find and apply for government grants, stimulus packages and funding opportunities from local, State and federal government agencies. Available Indiana small business grants include funding initiatives for organizations that operate in the fields of tech, health, research, sciences, agriculture, the environment, etc.

MORE: Grants for farmers.

Grant Watch

Indiana Grantwatch operates a directory of current grant opportunities, although not all may be specific to Indiana-based organizations. Up to 2,000 grants may be available at any one time, with award values and qualifying criteria varying by category and mission goal.

MORE: Grants for women, black women, disabled business owners, minorities and veterans.

What are the alternatives to grants?

Business loans may provide an alternative source of funding for your business or new venture. Also look at small business loans in Indiana. Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:

Term loans

Term loans are the most common type of commercial loan. You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required. Read more about small business loans in Indiana.

Business line of credit

A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.

Invoice financing

Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral required.

Equipment financing

Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.

Merchant cash advance

Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.

Revenue-based financing

Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.

SBA microloans

Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.

Get started with Swoop

Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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