The Regional Development Co., which administers the U.S. Small Business Administration’s 504 Loan Program for small businesses in Northwest Indiana, has eclipsed $100 million in loans for the first time in its 25-year history.
The Valparaiso-based agency said it helped facilitate more than $150 million in investment, resulting in more than 600 jobs, in Indiana and Illinois last year.
At its annual membership meeting, the RDC announced it had gotten 36 U.S. Small Business Administration loans totaling $21 million in funding to local firms. That included six loans to women-owned businesses, seven to minority-owned businesses and seven to rural businesses.
“Ninety percent financing allows our customers to retain more of their funds for working capital needs, and the long-term fixed interest rate mitigates the risk of increasing payments during the life of the loan,” said Erica Dombey, president and executive director. “Banks benefit from the collateral structure, which allows them to maintain a 50% loan-to-value on the project real estate or equipment. With a 25-year fixed interest rate under 2.5%, this is the best loan for any business owner looking to buy, build or refinance owner-occupied commercial real estate.”
The Regional Development Co. also funded $46 million loans this year, bringing in $87 million in investment. Centier was Bank of the Year with $11.6 million in referral dollars. Lender of the Year Awards went to Tim Spoelman at Centier Bank, Chris Chatfield at First Merchants Bank, Heather Thompson at Old National Bank, Greg Gottschalk at Centier Bank and Tim Spoelman at Centier Bank.
Each of them referred three loans to the RDC last year.
Dan Shelby with Peoples Bank, Greg Gottschalk with Centier Bank, Pat McGinley with Teacher’s Credit Union, Lisa Misch with 1st Source Bank, Tim Warner with Centier Bank and Tim Spoelman with Centier Bank also were inaugurated into the Millionaires Club for referring loans of more than $1 million to the RDC.
For more information, call 219-476-0504 if based in Indiana or 708-960-3177 if in Illinois, or visit www.rdc504.org.
How much do Northwest Indiana CEOs make?
The business news you need
With a weekly newsletter looking back at local history.