HB 1554 Summary

• Establishes a small business loan program administered by the Indiana Finance Authority with a dedicated small business loan fund.

• Authorizes the Indiana Finance Authority to transfer money from the fund to participating financial institutions for low-interest loans to approved small businesses with no more than 100 full-time employees and gross annual receipts not exceeding $5,000,000.

• Limits interest rates charged to small businesses to the rate payable to the Indiana Finance Authority plus 3%, with a maximum deposit of $1,000,000 per small business development project and loan terms not exceeding 20 years.

• Requires loan proceeds to be used for real property purchases, building construction or renovation, equipment or inventory purchases, or working capital purposes.

• Mandates annual reporting by the Indiana Finance Authority and annual evaluations by the entity responsible for Indiana economic development corporation duties, with findings submitted to the governor and general assembly beginning November 1, 2014.