New Legend Fund aims to provide more capital to small businesses
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The Indiana Economic Development Corp. on Tuesday announced the launch of the Legend Fund, a loan participation program designed to help entrepreneurs and small businesses gain access to funds to fuel growth.
The $29 million fund will distribute capital to local lenders to boost lending to small businesses, with a focus on historically underserved owners.
The IEDC said the Legend Fund will give non-traditional lenders an incentive to provide operating capital to Indiana-based businesses. Eligible lenders could have a portion of the loans they issue purchased by the IEDC, freeing up capital to support more entrepreneurs and small businesses.
The $29 million in funding is expected to yield a minimum $50 million impact on the state’s entrepreneurial ecosystem, the agency said.
“Indiana is leading the nation in providing the ideal environment to help small businesses start, grow and innovate,” said Indiana Secretary of Commerce David Rosenberg said in a news release. “With even more funding and new programs like the Legend Fund, we’re taking our support of the entrepreneurial ecosystem even further, ensuring all small businesses have equitable access to the tools, resources and capital needed to succeed.”
Entrepreneurs and small businesses looking to take advantage of the loan program can connect with approved lenders by visiting the Legend Fund website. The IEDC has already approved nine lenders through the program:
- Build Fund
- Business Ownership Initiative Inc.
- Cambridge Capital Management Corp.
- Community Investment Fund of Indiana
- Flagship Enterprise Capital
- Lendistry
- Lynx Capital
- Indiana Community Business Credit Corporation
- One Southern Indiana
The IEDC said lenders such as Community Development Financial Institutions, local revolving loan funds, and other specialty lenders can register to participate in the program. The agency is also looking for businesses and not-for-profits that can provide technical assistance to small businesses seeking a loan through the Legend Fund.
The funding was awarded to Indiana through the federal State Small Business Credit Initiative. The state was approved in July 2022 for $86 million in funding, plus an additional $13 million if the state hits expected targets for the initial funding allocation.
At least 37% of the federal funding will be allocated to traditionally underserved small businesses and entrepreneurs, according to the IEDC.