New fund aims to support southern Indiana small businesses
NEW ALBANY, Ind. (Inside INdiana Business) — A partnership between One Southern Indiana and the Indiana Small Business Development Center will provide a new source of funding for small businesses in southern Indiana. 1si says the ONE Fund and the Small Business Navigator program will offer business owners an “all-inclusive resource” for accessing startup capital and growth initiatives.
The ONE Fund has received a total of nearly $340,000 to provide loans ranging from $2,000 to $20,000 to small business owners in Clark, Floyd, Jefferson, Scott and Washington counties.
The loans come with an interest rate equal to the Prime Rate plus 2%, with repayment terms of two years for working capital loans, five years for machinery and equipment financing, and seven years for real estate/brick-and-mortar loans.
“Southern Indiana has a wealth of financial institutions and lenders who do an excellent job serving our business community. But some businesses, especially start-ups and very small companies, may not easily fit into standard lending guidelines,” 1si CEO Wendy Dant Chesser said in written remarks. “The ONE Fund exists to assist those businesses in getting the financing they need to succeed. As they build a solid foundation and repay those loans, they can be in a better position to be served by our region’s lenders.”
The ONE Fund is expected to begin offering loans June 30.
1si says the program will also offer business owners education and advisory resources to help build a sustainable business.
The funding for the program comes from Caesars Foundation of Floyd County, Washington County Economic Growth Partnership, the Town of Clarksville, the City of Jeffersonville, the Floyd County Commissioners and COVID Emergency Loan Payback.
1si says it could receive additional funding from the READI program, if approved, to cover administrative and operating expenses.