SBA 7(a) Flex Space Feasibility Study in Indiana

Loan size for nonresidential lessor buildings in Indiana

The file for Indiana nonresidential lessor buildings under SBA 7(a) holds 36 loans from FY2017 to FY2026 and $16.9 million of gross dollars. The middle of the Indiana book is $265,400; the middle half of nonresidential lessor buildings loans starts at $119,500 and tops out at $764,750. Relative to nonresidential lessor buildings nationwide under SBA 7(a), the Indiana figure is 0.44x, so a typical Indiana loan for nonresidential lessor buildings runs smaller than nationwide. With a franchise share of 13.9%, owners of most Indiana nonresidential lessor buildings operate independently.

By number of loans, Indiana sits at rank 15 for 7(a) lending to nonresidential lessor buildings, and the class stands 16 of 39 among the classes in Indiana. Approvals in Indiana peaked in FY2020 at 6 loans worth $3.2 million, while FY2026 shows 1 loans and $50,000. Lessor lending is a special case: SBA's treatment of it nearly stops from FY2024, so this 7(a) cell for Indiana flex buildings is a record of earlier years, and the blended page hides the break.

Most Indiana loans sit with Lake City Bank, which holds 5 worth $3.2 million. In Indiana, Lake City Bank is the lead name on 36 loans, SBA's file recording nonresidential lessor buildings loans each holds or held. By area, Marion leads with 5 loans, then Elkhart with 4 and Lake with 4. Lower on the list are Allen 2, Floyd 2 and Washington 2.

Cancellation and loss figures for Indiana nonresidential lessor buildings

Across FY2017 to FY2024 approvals in Indiana, a cancellation floor of 14.3%; with undisbursed loans counted as cancelled, the Indiana ceiling stays at 14.3%. Charge-offs cannot be given: too few Indiana loans were funded, which says nothing about Indiana either way. Because lessor lending nearly stops from FY2024, Indiana's record is mostly earlier years, and nothing in the code separates flex buildings from office or retail ones. Financing without SBA never enters Indiana's tables.

What an Indiana flex building study must prove

For an investor building the question is tenants: show who will lease the space near Marion, at what rent, and how soon. Vacancy and re-leasing risk drive the debt service test, so hold occupancy low in the early years. Tenant improvements and leasing commissions can consume a large share of a project, so set a loan near $265,400 against that budget. Flex product mixes office, warehouse and showroom uses, and each tenant type should be shown separately. An appraiser values leased property on stabilized net income.