One of the ways that banks help the communities they serve is by engaging in partnership lending to increase capacity to lend to businesses and nonprofits. The following are some examples of partnership loans involving members of the Indiana Bankers Association.
Federal Home Loan Bank of Indianapolis
More than two dozen small businesses in Indiana received one of the bank’s annual Elevate Small Business Grants this year, totaling more than $550,000 in awards statewide – a new record thanks to increased funding. The program funds growth projects such as facility expansion, equipment and technology upgrades, workforce development and other projects designed to take small businesses to the next level. Small businesses that want to apply must be sponsored by an FHLBI-member institution. IBA-member banks with successful applications this year include:
- 1st Source Bank, South Bend
1 recipient, $20,000 - Alliance Bank, Francesville
2 recipients, $40,000 total - Boonville Federal Savings Bank
2 recipients, $19,175 total - Community First Bank of Indiana, Kokomo
2 recipients, $40,000 total - First Harrison Bank, Corydon
1 recipient, $20,000 - Hendricks County Bank & Trust Company, Brownsburg
1 recipient, $20,000 - Home Bank SB, Martinsville
2 recipients, $40,000 total - The Hometown Savings Bank, Terre Haute
1 recipient, $20,000 - Hoosier Heartland State Bank, Crawfordsville
1 recipient, $20,000 - Merchants Bank, Carmel
4 recipients, $74,834 total - The Napoleon State Bank
1 recipient, $20,000 - Old National Bank, Evansville
2 recipients, $36,135 total - Peoples Trust & Savings Bank, Boonville
1 recipient, $20,000
Six of the top 10 institutions with successful applications this year were based in Indiana. Now in its seventh year, Elevate has supported nearly 200 small businesses across Indiana and Michigan for a total of more than $3.8 million.
FHLBI also awarded $15.12 million in affordable housing grants in November 2023 to acquire, build or rehabilitate more than 1,150 units of affordable housing in the neighborhoods and communities where the Bank’s member institutions do business. That’s more than double the $7.24 million distributed the prior year. The Affordable Housing Program grants included 20 projects in Indiana, 19 of which were backed by IBA-member institutions. That’s up from nine projects across four IBA-member institutions the prior year.
- 1st Source Bank, South Bend
3 projects, $270,000 total - Community First Bank of Indiana, Kokomo
1 project, $600,000 - Community State Bank, Avilla
2 projects, $1.2 million total - First Savings Bank, Jeffersonville
1 project, $600,000 - German American Bank, Jasper
2 projects, $600,000 total - Lake City Bank, Warsaw
1 project, $600,000 - Merchants Bank, Carmel
2 projects, $812,500 total - The Napoleon State Bank
1 project, $600,000 - The National Bank of Indianapolis
1 project, $600,000 - Old National Bank, Evansville
6 projects, $3.59 million total
Indiana Statewide CDC/SBA 504 Loans
The Indiana Statewide Certified Development Corporation helps banks leverage loans for smaller companies by providing Small Business Administration 504 loans.
ISCDC is affiliated with Cambridge Capital Management Corporation, an IBA associate member. Examples of partnerships with ISCDC:
- First Bank of Richmond – Partnership announced in September helped Pilgrimage Wine Company buy new equipment and open a tasting room on their Wayne County property. Owners Scott and Emma Eckart say the loan is helping them start their winery several years earlier than expected. The property has been in Scott’s family for 60 years.
- GBC Bank, Greenfield – Polk Stables is a new COhatch co-working and arts center next to the Monon Trail in Indianapolis. Originally constructed in 1888, it once housed mules that pulled insulated carts to deliver milk for Polk Sanitary Milk Company. This partnership, announced in September, helped Sajan George, principal owner and manager for Polk Stables Group, buy and rebuild the 21,741 square-foot facility to feature 38 private offices and more than 100 co-working seats.
Partnership Financing is an occasional column in Hoosier Banker featuring examples of IBA-member institutions engaging in partnership lending to better help the communities they serve. Send your examples to HB@indiana.bank.
