- Planning & Economic Development
- Financial Incentives
Economic Recovery Aid Efforts for Indiana Small Businesses -Grant and Loans Available
For Immediate Release:
Friday, May 29, 2020
Gov. Holcomb Announces Nearly $44 Million to Aid Economic Recovery Effort
New initiatives launched to help Indiana businesses restart, adapt and stimulate long-term growth
INDIANAPOLIS – Today, Governor Eric J. Holcomb announced several new economic recovery initiatives designed to bolster critical relief efforts while encouraging long-term planning and investments to stimulate Indiana’s economy well into the future. Through these initiatives, the state will allocate nearly $44 million to provide support and resources including approximately $37 million in direct funding through grants and investments to small businesses and manufacturers – two key drivers of the Hoosier economy.
"To restart Indiana's economic engine, it's critical that we provide Hoosier businesses and entrepreneurs with the support they need to grow and get back on track," Gov. Holcomb said. "These initiatives will ensure that two critical drivers of our state's economy have access to resources and technological tools that allow them to continue competing and leading in the 21st century economy, while further positioning our state for long-term economic growth."
To safely guide a return to economic activity, the state is committed to deploying federal relief funds under the CARES Act in coordination with Indiana's Economic Relief and Recovery Team, while targeting initiatives aimed at achieving long-term economic stabilization.
• Small Business Restart Fund: Gov. Holcomb approved $30 million in federal funding made available through the CARES Act to small business restart grants, helping accelerate the speed of economic recovery activity by providing working capital to cover certain expenses related to the global pandemic. Indiana small businesses with fewer than 50 employees and $5 million in annual revenue that have experienced a 40% drop in revenue will be eligible to be reimbursed for up to 80% of qualified expenses, such as rent or mortgage payments, utilities, lease payments for real or personal property, and safety
investments, such as personal protective equipment (PPE) and infrastructure improvements.
Eligible small businesses that demonstrate a revenue loss of at least 40% will be awarded up to $2,500 for each month while small businesses that demonstrate a revenue loss of at least 80% will be awarded up to $5,000 for each month, with grants issued up to $10,000 per company. Of the $30 million allocated to the fund, at least $5 million will be reserved for certified
minority- and women-owned businesses. More information on the program, including additional eligibility requirements, is
available as an attachment on this webpage. Accepting Applications from June 3, 2020 - 9/30/2020.
• Small Business Relief & Planning Resources: The Indiana Small Business Development Center (Indiana SBDC) received nearly $3.7 million from the U.S. Small Business Administration (SBA) through the CARES Act to support increased resources for Hoosier entrepreneurs and small businesses over the next 18 months. The funding, which will nearly double the organization’s annual federal appropriations, will enable Indiana SBDC to increase no-cost services, such as counseling and training, for businesses that were in operation prior to and that have been impacted by COVID-19. Services will be available through the Indiana SBDC’s 10 regional offices across the state and are expected to focus on financial assistance,
ecommerce, business adaptation and innovation, disaster resiliency and planning, and reopening plans.
More information on Indiana SBDC resources is available online; updates on new programs or initiatives that may be added
with this funding will be forthcoming.
With the additional funding provided by the new COVID-19 relief package, SBA has resumed processing Paycheck
Protection Program (PPP) applications submitted by participating lenders. The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. SBA will forgive the loan if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. At least 75% of the forgiven amount must have been used for payroll. Applications are currently closed due to
limited appropriations funding. Applications may be reopened if additional funding is approved.
ECONOMIC INJURY DISASTER LOANS
With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis. The SBA will provide further
information on the availability of the EIDL portal to receive new applications (including those from agricultural
enterprises) as soon as possible.
The U.S. Small Business Administration (SBA) oversees the Economic Injury Disaster Loan (EIDL)- COVID-19 assistance program. The application portal is temporarily closed due to limited funding appropriations. Additional information is
available at www.SBA.gov/disaster. These loans up to $2 million may be used by small businesses as well as private nonprofits to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
EXPRESS BRIDGE LOANS
The Express Bridge loan program allows SBA Express lenders to provide expedited financing to small businesses located
in declared disaster areas. Express Bridge loans are intended to be interim loans. Businesses use these funds for disaster-
related purposes while they apply for and await long-term financing. Speak with your current lender or use Lender Match
below to find a participating lender.
• Manufacturing Support & Long-Term Growth: The Indiana Economic Development Corporation (IEDC) board of directors approved $10 million to launch the Economic Activity Stabilization and Enhancement (EASE) program aimed at supporting technology and operational advancements in the manufacturing industry, which has long been a key driver of the state’s economy. EASE, which encompasses three complimentary initiatives, is designed to stimulate manufacturing investments that will position Hoosier operations, and the sector overall, for future growth and prosperity by prioritizing startup
investment and resources, technology modernization and development, and training assistance.
The three EASE initiatives include:
o The new Smart & Advanced Manufacturing (SAM) Focus Fund, which will make seed and early-stage investments and
provide entrepreneurship resources to Indiana manufacturing-focused startups through Elevate Ventures, the state’s venture development partner;
o Manufacturing Readiness Grants, administered in partnership with Conexus Indiana, will provide matching grants of up to $200,000 to companies committing to modernizing their operations or integrating smart technologies and processes in
order to improve capacity, or to companies investing in health care manufacturing technology, providing financial
assistance to manufacturers supporting critical COVID-19 response efforts; and
o A planned Smart Manufacturing Studio Lab, which will provide lab space and access to state-of-the-art smart
manufacturing equipment, enabling businesses to train employees, validate technologies for their business models,
and conduct third-party pilot manufacturing.
Of these programs, the SAM Focus Fund will launch immediately while the Manufacturing Readiness Grant applications are expected to be available in July with initial grant recommendations beginning in August. The IEDC will partner with industry stakeholders to develop a project scope for the Smart Manufacturing Studio Lab, mapping out next steps and a plan to source and supply the equipment, working toward a studio launch in early 2021. More information on EASE, which is funded through the state’s 21st Century Research and Technology Fund, is available here.
Indiana's manufacturing and small business sectors play critical roles in supporting the state's economy. With more than 8,500 manufacturing facilities and the highest concentration of manufacturing jobs in the U.S., manufacturing accounts for 27.8% of Indiana's total economic output. Additionally, according to the SBA, Indiana is home to approximately 104,335 small businesses that employ fewer than 150 associates, supporting 941,578 Hoosiers across the state.
Today's announcement marks another step forward for the state in providing resources and tools to Hoosier businesses and entrepreneurs impacted by COVID-19. The state recently launched the Indiana Small Business PPE Marketplace, which serves as an online hub for small businesses and nonprofits employing up to 150 associates that are in need of personal protective equipment (PPE). Since its inception, Indiana has received 26,130 orders for PPE and has fulfilled 25,500 orders, shipping bundles of hand sanitizer, face masks and face shields to companies across the state. To learn more about other COVID-19 resources, visit iedc.in.gov/response.
• Indiana Bankers Association and the Indiana Credit Union League are maintaining lists of Indiana financial institutions
who are supporting the PPP program.
• Businesses needing assistance compiling this documentation can contact the nearest Indiana Small Business Development
Center (SBDC) office.
• Re-Opening Resources FirstPerson, a benefits and compensation advisory firm with decades of experience helping clients navigate the changing workforce, has created a COVID-19 Resource Hub with a free concierge advisory service, training
webinars, and a Return-to-Work Toolkit.
• Counseling and Advising, To be connected to an Indiana SBDC business advisor, please visit our location page to find an
office nearest to you. For additional no-cost, one-on-one virtual or telephone business advice regarding COVID-19 and
other matters find an SBA Resource Partners near you at www.SBA.gov/local-assistance.