Helping Hoosier businesses build bigger: An often overlooked program can help
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Experts are predicting that volatility in the economy will continue for the remainder of the year. Consumers are faced with inflation and fluctuating interest rates, with at least one more rate increase predicted to “cool off” the overheated economy. Businesses are also paying close attention to interest rates, especially entrepreneurs looking to launch or expand businesses.
Community banks across Indiana are committed to making sure our fellow Hoosiers – the customers and companies we serve – can navigate the sometimes testy waters of their finances. With National Small Business Month, it’s important for us as community bankers to remember that small businesses are the fabric of our economy. Helping small businesses grow and prosper is at the foundation of what we do, and we use any tool at our disposal to help our customers.
During the COVID-19 pandemic, many businesses – large and small – took advantage of the Paycheck Protection Program (PPP), which kept people employed and provided much needed breathing room for businesses affected by the public health crisis. The American Rescue Plan offered more support to small businesses in the form of the Employee Retention Tax Credit, and consumers were also supported directly in the form of economic impact payments.
Aside from programs brought about by the pandemic, the U.S. Small Business Administration (SBA) offers the 7(a) loan, which is SBA’s most common loan program and can help small businesses purchase real estate, refinance current business debt, provide short and long-term working capital and much more. But one program that is often overlooked is SBA’s 504 loan program. This important financing option provides long-term, fixed rate financing for major projects that help businesses grow and create new, good-paying jobs.
These loans provide businesses with the financial flexibility to transform and expand their operations, while also bolstering local economic development and job growth. Stock Yards Bank was recently able to help a tire store in Indianapolis grow its business, create steady, good-paying jobs and strengthen the Indianapolis economy with a 504 loan. While the impact might seem small to some, it’s loans like this that help our community – and its businesses – prosper.
In December, Stock Yards Bank was recognized by the SBA as one of the Indianapolis region’s leading banks in originating SBA 504 loans. We take great pride in earning this distinction, because it recognizes our commitment to helping small business owners in our community grow and succeed.
Small businesses are the lifeblood of the American economy, and the Hoosier State is no different. When small businesses succeed, Indiana succeeds. The mission of community banks – like Stock Yards Bank – is to help customers and the companies they serve. Ensuring clients know about transformative financial tools and programs is what community banks do best every day, everywhere.
Hoosier small businesses throughout our state have benefitted from the “real life preserver” that is the SBA 504 program. It can help your business, too. Contact your trusted community banker now to see what help is available to you, including to see if you qualify for a 504 loan. In the meantime, learn more about the 504 program by clicking here.