Small Business Loan and Coaching Program

Loans between $1,000 and $30,000 are available to eligible small businesses. This is a loan program and not a donation or grant—businesses receiving a loan will be required to make monthly payments until the loan has been paid in full. Loans will be available on a first-come, first-served basis based on applicant eligibility until program funding has been exhausted. 

Eligibility Requirements

Small businesses interested in obtaining an Opportunity Fund loan must meet the following minimum eligibility criteria with no exceptions:

• The applicant must be a for-profit business and be either a startup or have previous calendar year revenues at or below $300,000;
• The applicant’s business must be physically located in and operate within the City of South Bend (click here to view a map showing the city limits); and
• The applicant must be a legal business entity such as a sole proprietorship, partnership, corporation, or limited liability company.

Any applicant with a previously charged off loan with 1st Source Bank will not be eligible for an Opportunity Fund loan. Also, the applicant will be required to have appropriate worker compensation as required by law, as well as general liability and/or commercial property insurance (as applicable). Applicants will be asked to provide adequate information and supporting documentation to demonstrate meeting program requirements. 

Business Coaching

An applicant for the South Bend Opportunity Fund program is required to complete business and financial coaching through the ISBDC before being referred to 1st Source Bank to begin the loan application process. 
There will be two separate coaching programs offered, one for start-up businesses (i.e., in business less than 12 months) and a second for established businesses (i.e., in business 12 months or more).  Upon completion of the coaching, the business will be referred to a bank loan officer assigned to manage Opportunity Fund loan applicants. 

Small Business Loans

Loans are conventional fully amortizing term loans with a fixed interest rate of 5.00% and term of up to 60 months. There will be no loan application fee or closing fees.  Loan proceeds can be utilized for working capital and/or to purchase machinery and equipment.  Loans will be secured via UCC filings or titled assets.

Underwriting requirements include, but are not limited to, the applicant having a minimum 650 credit score and no bankruptcies in the prior 3 years, as well as no judgements, liens, or foreclosures in the prior 2 years.

A minimum level of business and financial coaching will be required of all applicants. In addition to a required post-loan coaching session, free follow-up coaching will be available and encouraged after the business has obtained the loan. 1st Source will require proof of business insurance, and a business checking account is required to be opened when the loan has been approved and funded. 

Applying for the Opportunity Fund Program

Businesses interested in obtaining an Opportunity Fund loan begin the process by visiting this website:  https://southbendin.gov/opportunityfund/ 

The website provides additional information and has a link to the ISBDC website to sign up for business and financial coaching. At that point, the applicant will complete a questionnaire and indicate their desire to participate in the Opportunity Fund program.  After completion, a representative from ISBDC will reach out to schedule the applicant in the mandatory business coaching. 

How is intake handled?

If the business owner is not already registered with the ISBDC, they will need to enter the below information and create their own password.

The intake process is done through the ISBDC webpage, where businesses must register with the organization.  To do so, there is a link in the top right of the webpage titled “Let’s Work Together” of the homepage.

Once they click on the link, they will be redirected to the registration pages. There are six steps in the registration process where the business owner enters their personal and company information.

Applicants will create a New Account for the ISBDC by registering with their name, email and password, then click Submit. The email address should be a preferred email address to get reach at.

Once they click submit, they will be redirected to Clients Sign-up: Network of Centers page.

Applicants will scroll down to select North Central Indiana SBDC and click on Sign-up.

Application will enter User Details such as contact information, address, and details then click on Continue.

Applicant will enter Company Details on the next page and then click on Continue.

Next, the applicant will see the Agreement page. All applicants must read accept the Clients Rights and Responsibilities and Request for Counseling. Once they agree, they must click on the box, type their full name and click on Continue.

The last step is where the applicant can select the Area(s) of Assistance they are requesting.  The South Bend Opportunity Fund is located as a selection in the Area of Assistance, as the City of South Bend Opportunity Fund and this selection needs to be marked to enter the queue for the program and click Continue.

Once the applicant completes the business coaching process and achieves loan readiness, ISBDC will refer the business owner to 1st Source Bank to further assist them with their financial needs. 1st Source Bank is equipped to help qualified applicants take the next step in securing the funds required to help grow and sustain their business.

311 Process Notes

Intake is available now and done through the ISBDC webpage (https://isbdc.org/). However, please note that loans will not be available until Q1 2025 and will be issued by 1st Source Bank upon ISBDC’s referral, following the completion of the coaching requirements.