Real Estate Assistance Fund for Black-Owned Businesses

The US’s long history of racism in the real estate industry restricted or directly prevented many Black businesses from owning commercial real estate. Black business owners experienced these discriminatory practices for decades, hurting their growth and limiting the accrual of generational wealth. In Indianapolis, redlining prevented Black businesses from purchasing land, contributing to the displacement of Black businesses that leased commercial property along Indiana Avenue and other neighborhoods in the city. These and other limitations have contributed to the racial wealth gap.

With financial support from Cummins, through their Cummins Advocating for Racial Equity (CARE) initiative, and the Local Initiatives Support Corporation, LISC Indianapolis has established a real estate assistance fund to provide up to $40,000 grants for Black businesses in Indianapolis that are seeking to purchase commercial property or retain their commercial property through capital improvements. These grants can be applied toward loan closing costs. The Real Estate Assistance Fund for Black-Owned Businesses grant assistance is available for eligible businesses approved for a real estate loan from one of the Indianapolis Small Business CDFI Collaboration partners: BuildFund, Business Ownership Initiative, Bankable or LISC. The Indianapolis CDFI Collaborative is a partnership of four community development financial institutions (CDFIs) that have a focus on commercial or small business lending in Indianapolis.

Click here to download a printable flyer.

Be Nimble Webinars:

5/18 - Webinar 1: About the Real Estate Assistance Fund and Presentation

5/25 - Webinar 2: Building the Data Room and Presentation

6/8 - Webinar 3: Finding the right property for you! (password: 1@HHqQPb)

Who is eligible for this grant?

To be considered for the real estate assistance grant, your business must be:

Seeking a Loan from a CDFI Partner (Bankable, BOI, BuildFund, or LISC) for:

Purchasing commercial property ranging in price from $100,000 - $1,500,000
Capital improvement (at least $100,000) to existing commercial real estate owned by a Black business. These requests will be evaluated on a case-by-case basis to ensure alignment with the goal of this fund.

Non-profits are not eligible for the Real Estate Assistance Fund.

Your business must prove eligibility of the following:

2021 Business Annual Gross Revenue of $2,500,000 or less
Business operating at least two years (exceptions case by case)
Black-owned business located in Central Indiana (nine-county area)
Purchasing (or capital improvement to) commercial property in Marion County

The following businesses will be prioritized for receiving the real estate assistance grant if:

Business received a Cummins-funded Small Business Relief Grant or Loan for Black-owned Businesses in 2021 (through LISC Indianapolis or Indy Black Chamber of Commerce); or
Black-owned business located in Indianapolis/Marion County, specifically business and/or commercial properties located in the following zip codes: 46224, 46222, 46208, 46226, 46235, 46229, 46219, 46218, 46201, 46225, 46221, 46241, 46227, 46203, 46204, 46205, 46107

Only businesses that are approved a loan from a CDFI partner will be able to access this grant fund.

Other Fund Benefits

LISC Indianapolis can provide reimbursement grants of $2,500 per property/business to cover Appraisal/Phase 1 Environmental costs.
Additionally, businesses that are approved the loan and receive the grant assistance will also receive a one-year free membership (up to $200) at Indy Black Chamber of Commerce.

Are you ready to take on a commercial real estate loan?

Financial institutions often evaluate potential borrowers based on capacity, capital, collateral, conditions and character. Understanding these principles can help your business know how to present your loan request to a financial institution. Capacity: Business’ ability to repay the loan. Lenders will often look at projected revenue, expenses, cash flow, business and personal credit scores. Capital: The available cash that you will be putting into the business (financing). You need to make an investment in your business first; this will demonstrate your personal commitment to a lender. Collateral: A lender will ask the business for collateral (such as equipment, vehicles, inventory, etc.). If the business is unable to make the loan payments, the lender will try to recover what they are owed through collateral. Conditions: You will need to demonstrate the market need for your business (and products) and make the case for why the loan is needed. Lenders will often evaluate local/national trends, type of industry and your business position within the market in considering a loan. Character: The lender will evaluate your personal background, financial track record, and business history.

Financial institutions will often ask for a list of documents to review in consideration of a loan. Below is a list of standard documents often requested (and links to templates):

Personal tax returns (3 most recent years)
Business tax returns (2-3 most recent years)
2021 year to date profit & loss statement and balance sheet
Business debt schedule (for any existing debt)
Business plan and financial projections
Property details (cost, size, location, existing tenants, etc.)

For a more streamlined and faster process, it will be helpful to have the above list of documents and information available for a loan officer to review.

Have you identified a commercial property?

If you are looking for commercial property in a particular area of the City, reach out the local community development corporation in the area. Loopnet also has a list of active listings online.

Next Steps?

If your business is in a financial position to purchase a building (in the near future) and you have a site identified, you are ready to take the next step. To qualify for a loan and grant assistance, you must complete the loan interest form. This will determine which CDFI partner is the best fit and the appropriate partner will reach out to you to discuss next steps. A business must be approved for a loan from a CDFI partner to have the real estate assistance grant apply toward the loan. The grant will come through the CDFI lender that the business is working with.

Other Business Resources and Grants

LISC Façade Improvement Grant Program – LISC Indianapolis has a grant program available for businesses that want to improve the front-facing exterior of their building. These improvements could include signage, exterior lighting, windows, murals, painting, doors, and/or structural and design changes. Grants range from $1,000 - $20,000. Priority for minority-owned businesses. For more information, click here.
Verizon Small Business Digital Ready Program – LISC has partnered with Verizon to launch the Small Business Digital Ready online platform. The free platform has personalized tools for businesses including learning modules, coaching, peer networking and resources (including grants at different times). To sign up, click here.
Minority-owned Business/Women-owned Business/Veteran-owned Business Certifications with the City of Indianapolis – The City of Indianapolis offers a certification for businesses that are interested in competing for City projects and other contract opportunities. Certification is active for 3 years. To learn more, click here.
Free Business Coaching with SCORE Indianapolis – SCORE Indianapolis provides free business mentoring from experienced advisors and free workshops. To sign up for a mentoring session, click here.
Here are other community-based organizations that are offering ongoing technical assistance, programs, and workshops for businesses: Edna Martin Christian Center, La Plaza (available in Spanish), Be Nimble, Business Ownership Initiative (available in Spanish),Source Entrepreneurship.

Contact

Kelly Evans, Program Officer

Funder

Program Funders

Cummins