Merchants Bank of Indiana’s SBA Team Provides 504 Loan to Minority-Owned Business in Indianapolis

A new year brings a plethora of opportunities for small businesses around the country. Now what a business does with their opportunities is up to them – but with the U.S. Small Business Administration (SBA) team at Merchants Bank of Indiana (MBI), small businesses can receive much-needed and much-deserved assistance.

If the past several years have taught us anything, it’s that small businesses are resilient. As lenders in the space, we know that being prepared for whatever comes next is a crucial step towards success. Despite the past two years of uncertainty, our nationwide, trusted SBA lenders are still here, ready to lend a hand for any small business, no matter the task – and we aren’t going anywhere.

Bridal Shop Store Front

Take for example a recent loan we secured for a women-owned, minority-owned local bridal shop based in Indianapolis. As COVID-19 caused many weddings to be postponed in 2020 and 2021, the bridal shop was forced to close for a portion of the year in 2020, but the owner made it a point to not conduct any layoffs to keep team morale high. And while there were some supply chain disruptions, the owner worked with the factories that manufactured her products on a regular basis through Zoom and other forms of contact, ensuring there was no disruption in the ability to deliver dresses on time. In the face of opposition, this small business owner prevailed.

As a long-term Indy staple, and to honor finding her footing again after the pandemic, the owner wanted to expand her existing bridal store footprint in 2023 by constructing a new, state of the art bridal facility and headquarters to relocate the business. Currently, the bridal store leases approximately 5,000 sq. ft. of space. Filled with brides-to-be, the smaller store is consistently crowded, and it does not provide enough room to serve the overwhelming demand. This relocation aimed to provide both room for expansion – with the total lot size of 2 acres and over 25,000 sq. ft. under roof – and growth of the business as a whole with new team members. Additionally, moving to their own building will save the borrower $192,000 annually on their lease payments.

The bridal shop owner connected with the SBA team at Merchants Bank of Indiana to decipher her options for a small business loan. Our trusted lenders decided that the best option for her specific needs would be to work with an SBA 504 loan, one of the most popular loan options for small businesses. SBA 504 loans provide long-term, fixed rate financing for major fixed assets that promote business growth and job creation, so it was perfect for the bridal shop owner’s dream of expansion.

A 504 loan offers several unique advantages for small businesses – including yours! These benefits include:

  • Providing borrowers with a 25-year fixed rate on up to 40% of the financing. This longer maturity helps match borrowers' business cash flow and offers an ability to service their building debt.
  • The program helps borrowers use higher leverage with equity into projects that are typically only 10% of a total project. This assists the borrower by preserving their working capital.
  • When the loan is used to purchase and own land versus renting, that benefit of ownership of a commercial real estate property provides the owner with both rent control and stability for their future operations.

If your business is ready to kick off the new year with a loan to help you grow, the SBA team at Merchants Bank of Indiana is on standby to assist in any way we can. Connect with our SBA lending specialists today to learn more about what we can do for your business to start the year off right.

For more information on Merchants Bank’s SBA program, click here or follow along with us on Facebook, LinkedIn, Twitter and Instagram.

                                                                                       # # #

SBA 7A   |    SBA 504   |   USDA B&I

Our SBA Lending Specialists


Headshot of Jeff Scott

Jeff Scott

President, SBA Lending

Sherwin Patidar

Sherwin Patidar

Executive Vice President,

SBA Lending

Headshot of Tony Holtzman

Tony Holtzman

Senior Business Development Officer, SBA Lending

Headshot of Mark Harville

Mark Harville

Senior Business Development Officer, SBA Lending


Headshot of Tony Boddie

Tony Boddie

Senior Business Development Officer, SBA Lending

Headshot of Brian Konwar

Brian Konwar

Senior Business Development Officer, SBA Lending

Scroll to Top

Account Login