Merchants Bank of Indiana logo

Merchants Bank of Indiana

SBA Preferred Lender in Carmel, IN: SBA 7(a) loans up to $5M, 9.0% median rate, collateral on every loan, decided in-house. Best for business buyers and franchisees.

SBA & Government-Backed Loans:
SBA 7(a) Loans
Tags:
#$1m+#Working Capital#Secured#Buying A Business

Rates & Cost

What the financing costs, normalized so lenders can be compared.

Estimated APR:
~9.54% APR on a $350K 10-yr SBA 7(a) at the 9.0% median rate incl. 3% guaranty fee (Lender List est.); last-12-month rates 7.75% to 10.25%, median 9.0%
Pricing (as quoted by lender):
Lender does not publish SBA rates; SBA 7(a) FOIA data (as of Jun 30, 2026): 9.0% median starting rate last 12 months, range 7.75% to 10.25%
Cost to borrow $100K for 6 months:
≈$6,140 (6 months' interest at 9.0% on a 10-yr SBA 7(a), $4,441, plus $1,700 SBA guaranty fee; bank fees not published)
Fees:
SBA guaranty fee (2% of guaranteed portion up to $150,000; 3% on $150,001 to $700,000); bank closing fees not published
Early payoff:
Lender does not publish; SBA prepayment fee only on 15+-year terms when ≥25% is prepaid in years 1 to 3 (5%/3%/1%)
Pricing transparency (0-3):
0

Repayment Terms

How and how fast you pay it back, and how flexible it is.

Term:
120 months on 35 of 69 recent loans; up to 318 months (13 at 300 months) (SBA 7(a) FOIA data, 12 months to Jun 30, 2026)
Repayment schedule:
Monthly amortizing payments; all 69 recent SBA loans variable-rate (tied to Prime); all 10 recent SBA Express loans were revolving lines of credit
Flexibility in slow months:
Low — monthly amortizing payments; variable rates reprice with Prime; 10- to 25-year terms keep payments small

Eligibility & Access

Who qualifies and what you have to put on the line.

Funding amount:
SBA 7(a) up to $5,000,000 per loan (SBA SOP 50 10 8.1, eff. Oct 1, 2026). SBA 7(a) FOIA data: $143,000 to $5,000,000 in the 12 months to Jun 30, 2026, median $828,000
Minimum revenue:
Lender does not publish; must meet SBA size standards
Minimum time in business:
Lender does not publish; 12 of 69 SBA loans in the last 12 months funded businesses not yet open, 6 more went to firms 2 years old or younger
Credit check:
Lender does not publish a minimum score; full credit underwriting
Personal guarantee:
Required from owners of 20% or more (SBA rule)
Collateral & lien:
Secured — collateral on all 69 SBA 7(a) loans in the 12 months to Jun 30, 2026; 10%+ equity injection for startups (SBA SOP 50 10 8.1) and business purchases (SBA rule)

Speed & Service

How fast you get funded and how the lender treats you.

Time to funding:
Lender does not publish; Preferred Lender makes the final credit decision in-house (bank); standard SBA 7(a) often 60 to 90 days to funding, Express about 30 days (NerdWallet)
Lender status:
Active (69 SBA 7(a) approvals in the 12 months to Jun 30, 2026; FDIC active)

Company Verification

Who actually stands behind the lender: legal entity, registration, and how long the business and its website have existed. Checked against public registries.

Legal entity:
Merchants Bank of Indiana
Registered in:
Indiana (FDIC cert #8056)
Company formed:
Chartered 1923
Website domain registered:
May 2012
Follow:
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Listing image

Best for: Business buyers and franchisees who need an SBA 7(a) loan above $350K (56 of its 69 recent loans), up to the $5M per-loan limit.

Not for: Borrowers who want posted rates, a loan under $150K or unsecured credit.

Lender List verdict: Merchants Bank of Indiana approved 69 SBA 7(a) loans worth $101.6 million in the year to June 2026, at a 9.0% median starting rate and an $828,000 median size. Every loan was secured, and rates are unpublished.

Merchants Bank of Indiana at a glance

Merchants Bank of Indiana
Lender typeState bank (FDIC cert 8056); SBA Preferred Lender
Founded / HQ1923 / Carmel, Indiana
ProductsSBA 7(a), SBA 504, USDA B&I
Amounts$143,000 to $5,000,000 (last 12 months)
Cost9.0% median starting rate (last 12 months)
Term120 months typical; up to 318 months

What is Merchants Bank of Indiana?

Merchants Bank of Indiana is a $21.2 billion state bank based in Carmel, Indiana, and owned by Merchants Bancorp. Chartered in 1923, it took its current name in 2009. This page covers its SBA lending only.

How Merchants Bank of Indiana's SBA loans work

Merchants Bank of Indiana makes large, variable-rate, secured SBA loans, mostly decided in-house. In FY2025 it approved 90 SBA 7(a) loans for $121.6 million; recent loans averaged $1.47 million.

  • Preferred Lender 7(a): 53 of 69 recent loans, $143,000 to $5,000,000
  • SBA Express: 10 revolving lines, $150,000 to $500,000
  • Business purchases: 32 of 69 recent loans
  • Franchises: 20 of 69, including six The UPS Store locations

Merchants Bank of Indiana SBA rates and fees

Merchants Bank of Indiana's median SBA starting rate was 9.0% in the year to June 2026; recent rates ran 7.75% to 10.25%, with Prime at 7.00%. SBA's guaranty fee is 3% of the guaranteed share on $150,001 to $700,000 loans.

Worked example: a $350,000, 10-year 7(a) at 9.0% costs $4,433.65 a month, or $182,038.25 in interest. The $7,875 guaranty fee lifts the APR to about 9.54%, under the SBA's 11.5% cap for that size; above $350,000 the cap is Prime plus 3%.

Merchants Bank of Indiana SBA loan requirements

Merchants Bank of Indiana publishes no credit score or revenue minimum.

RequirementMerchants Bank of Indiana minimum
Business sizeMust meet SBA size standards
Personal credit scoreLender does not publish
Equity injection10%+ for startups and business purchases
Collateral / guaranteeCollateral on all; guarantee from 20%+ owners

Frequently asked questions about Merchants Bank of Indiana

Is Merchants Bank of Indiana Legit? Yes. Merchants Bank of Indiana is an active FDIC-insured state bank, certificate 8056, with $21.2 billion in assets and roots back to 1923. It has made 482 SBA 7(a) loans since FY2020 with one charge-off, and it holds SBA Preferred Lender status, used on 53 of 69 recent loans.

Where Is Merchants Bank of Indiana Located? Merchants Bank of Indiana is headquartered at 410 Monon Blvd in Carmel, Indiana, with eight offices per the FDIC, the newest in Bloomington (April 2026). Its SBA lenders work by phone and web form, and recent borrowers were in 18 states.

How Long Does Merchants Bank of Indiana Take to Close an SBA Loan? The bank does not publish a closing timeline; industry-typical timing is 60 to 90 days to funding for a standard 7(a) and about 30 days for SBA Express. As a Preferred Lender it makes the final credit call itself, skipping the SBA's separate review.

Does Merchants Bank of Indiana Lend to Startups? Yes. In the year to June 2026, 12 of 69 SBA loans funded businesses not yet open and six more went to firms two years old or younger. SBA rules require startups to inject at least 10% of project costs; expect collateral and a personal guarantee too.

Compare SBA 7(a) lenders, including Busey Bank and Newtek Bank.

Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.

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