The Indiana Economic Development Corporation (IEDC) announced the launch of the state’s Legend Fund, a loan participation program designed to help entrepreneurs and small businesses gain access to funds needed to grow.
The Legend Fund, fueled by federal funding awarded to Indiana through the State Small Business Credit Initiative (SSBCI), will distribute $29 million to mission-driven local lenders to increase lending to Hoosier small businesses, with an added focus on those that have been historically underserved.
The Legend Fund will support Indiana entrepreneurs and small businesses by giving lenders an incentive to provide operating capital to Hoosier-based businesses. Through the program, mission-oriented and non-traditional lenders that provide debt capital for qualified purposes to Indiana-based small businesses are eligible to have a portion of those loans purchased by the IEDC, enabling lenders to then support even more entrepreneurs and small businesses. The program’s $29 million is expected to yield a minimum $50 million impact on Indiana’s entrepreneurial ecosystem.
The Legend Fund is one part of Indiana’s efforts to accelerate startup growth and invest in underserved small businesses through SSBCI. In 2022, the IEDC was approved for $99.1 million in federal funding through the program to support Hoosier entrepreneurs, startups, and small businesses by expanding venture capital and creating this new loan fund. Indiana will receive $86 million and will be eligible to receive another $13 million when the state meets expected targets for the initial allocation. At least 37% of this funding will be allocated to traditionally underserved small businesses and entrepreneurs, encouraging greater equity in access to capital for Hoosier businesses.
For more information about this program visit iedc.in.gov/ssbci.
