Business Loan Criteria

Summary Criteria:
• Location
• Commitment
• Capacity
• Collateral
• Putting it all together for pricing (rates and terms)
• Lending Policy and Community Impact

Location: Your business must be located in Indiana.  Applicants must complete a loan application but may choose to start with a pre-loan project application to save time and determine if the project is eligible for further consideration. Visit (here) for the loan application and (here) for the pre-project application.  Or call (317) 960-3710 to discuss the proposed projects.

Commitment: CIFI loans are for business owners who have demonstrated or can demonstrate an enduring commitment to the growth and sustainability of the enterprise. As a result we will examine your industry relevant experience, expertise, past equity contributions to the enterprise and willingness and capacity to personally guarantee the loan that CIFI may make to the business. All loans will require a personal guarantee from an owner or any owner partner that control(s) more than 15% of the applicant business. CIFI can help you determine the minimum financial capacity to guarantee a business loan. Please complete a Personal Financial Statement (here) or call (317) 960-3710 to discuss the opportunity you may have with your business.

Capacity: The business and owner(s) must produce evidence to show how a loan from CIFI can be repaid. The first step would be to tell us about your personal credit history which can be obtained here. This site is not affiliated with CIFI and information on your credit report cannot be accessed by CIFI. However, we will utilize this information to determine your personal financial capacity to obtain a loan. With this in mind, it is important that you review your personal credit information for accuracy.

The second step is to provide us with a minimum of three years of financial statements. Copies of federal tax returns for the applicant business are the most commonly accepted way for us to understand and evaluate financial capacity of your business.

Collateral: All CIFI loans must be secured with collateral. Many business owners may pledge the items they propose to purchase with the loan proceeds as collateral. However, it is not uncommon for business owners to offer other forms of collateral such as real estate, equipment, vehicles or cash. CIFI can help you determine what levels of collateral might be necessary. The information provided on your Personal Financial Statement (PFS) (here) and the assets on your company balance sheet will help us in building your collateral package.

Putting it all together helps us determine your eligibility and the pricing: You do not have to have all of the above information to get started with CIFI. However, the process of gathering and submitting all the information will help us determine the pricing we can offer you should your loan application be approved.

Pricing: In general, pricing includes the interest rate we can offer your company and the length of repayment terms. The useful life of the items you may be purchasing with the loan proceeds is one of many criteria that we consider. The final answer cannot be determined until all the information you submit is evaluated. While we can give you a general idea about our pricing guidelines, we are committed to keeping you informed every step of the way about the best pricing we can secure for your particular loan application.

If you have a business located in Indiana, we can assist you with the development and assembly of the remainder of this information. Please obtain a loan application (here), complete as much as you can and give us a call at (317) 960-3710.  If you have all of the relevant information ready, please submit attachments along with the loan application to: Phil Black.

Lending policy and confidentiality: CIFI is a not-for-profit state-wide community economic development lender that provides a variety of loan products and development services to its customers. Organizations and businesses that have the necessary capacity to obtain loans from banks are often encouraged to consider applying to these organizations first or in certain circumstances we will offer to make referrals where and when CIFI believes the terms and pricing of other lenders will be more favorable to the customer. All loan applications and the information submitted with the application will be held confidentially between the applicant, directors and officers of CIFI. No information is shared with any federal or state agency or other not-for-profit or for-profit organization without the express written consent of the applicant(s)/borrower(s).

Community Impact: Because CIFI is a not-for-profit state-wide community economic development lender, organizations or businesses seeking financing will need to demonstrate with data that the uses of CIFI capital will primarily benefit financially underserved or distressed communities, low-income or targeted populations. Please call CIFI at (317) 960-3710 if you have questions about how this community impact criterion is determined and to learn if your project qualifies.