What Grants Are Available to Start a Business in Indiana in 2025?

Starting a business takes more than an idea, it takes funding. Grants are especially valuable because they don’t require repayment and don’t dilute ownership.

Unlike loans or venture capital, grants provide a financial boost without strings that can limit freedom or profit.

In 2025, Indiana continues to expand funding channels for entrepreneurs, making it one of the more proactive states for small business support.

State-Specific Grant Programs in Indiana

Indiana’s grant offerings reflect a commitment to growing its entrepreneurial base through targeted, state-supported funding.

Programs are designed to support a variety of needs, ranging from recovery and modernization to research-driven innovation and international expansion. Entrepreneurs at different stages of development can find relevant options across multiple industries.

What follows is a breakdown of key grant programs available statewide, along with bullet points summarizing their main features.

Indiana Small Business Restart Grant

Businesses still experiencing the ripple effects of pandemic-related disruptions may find immediate relief through the Indiana Small Business Restart Grant. Created to cover essential operational expenses, this grant helps business owners regain stability without taking on debt.

It is especially beneficial for smaller companies that suffered revenue loss or had to temporarily shut down.

Eligibility typically requires documented proof of financial hardship and a clear plan for how the funds will be used to sustain or re-establish business operations.

Elevate Small Business Grant

Administered by local banks, the Elevate Small Business Grant provides up to $20,000 for capital-related improvements.

The grant targets small businesses needing physical upgrades or new equipment to remain competitive. Startups and growing enterprises often rely on this funding to reduce overhead while expanding capacity.

Companies seeking efficiency improvements without sacrificing cash flow typically rank this option high among funding sources.

Applied Research Institute (ARI) Innovation Vouchers

To foster high-impact innovation, ARI offers matching grants up to $50,000 to help startups bring new products or services to life.

These vouchers support ventures with technical goals that require collaboration with academic or research partners.

Entrepreneurs are expected to show measurable outcomes, often with a focus on advanced science or socially beneficial technologies.

Companies with emerging intellectual property or a desire to prototype new offerings often use this grant to scale ideas efficiently.

Indiana Manufacturing Readiness Grants

Manufacturing firms interested in digital transformation may qualify for funding through the Indiana Manufacturing Readiness Grant.

The program prioritizes technology upgrades that improve both productivity and job stability. Funds are allocated toward implementing smart systems that make factories more competitive.

Manufacturers aiming to transition toward Industry 4.0 standards are the ideal recipients of this support.

Indiana State Trade and Export Promotion (IN-STEP) Program

IN-STEP helps Indiana businesses gain traction in international markets.

Business owners aiming to build overseas customer bases can use this funding to reduce entry costs and expand brand presence.

Manufacturers and agri-business operators often benefit most, especially when entering markets requiring specialized outreach.

Indiana Legend Fund

A $29 million allocation through the State Small Business Credit Initiative (SSBCI) powers the Indiana Legend Fund.

Tailored for early-stage and historically underserved entrepreneurs, this program combines direct funding with technical support.

The goal is to remove financial barriers and help more business owners achieve traction during vulnerable early stages.

Applicants often come from minority, rural, or women-led backgrounds, where traditional funding access remains limited.

Local and Industry-Specific Grants

Indiana’s local governments and industry-specific organizations offer targeted grants to support economic growth where it’s needed most.

With grants tailored to specific regions and industries, applicants have more precise opportunities for funding. Each grant comes with clear goals, allowing business owners to align applications with measurable objectives.

Rural Business Development Grants

Targeted at communities with populations under 50,000, these USDA-funded grants aim to strengthen rural economies. Entrepreneurs can access funding for structural upgrades, marketing initiatives, or staff development.

Many successful applicants present job creation strategies or training programs that benefit their community. Areas often lacking traditional investment pipelines are prioritized.

South Bend Business Grants

South Bend invests significantly in its local economy, offering up to $112,000 for businesses pursuing eco-conscious renovations or modernization efforts. Preference is often given to projects contributing to sustainability and community revitalization.

Energy-efficient systems, green infrastructure, and adaptive reuse of old buildings are strongly encouraged.

Michigan City Urban Enterprise Association Grants

Michigan City provides small grants to help businesses enhance physical spaces in its urban core.

Awards up to $7,500 support storefront makeovers, signage upgrades, and internal renovations. These improvements often increase foot traffic and support local business retention.

Quick turnaround and straightforward application processes make this grant popular among small shops.

Sector-Based Grants

Specialized grant programs target key industries crucial to Indiana’s long-term economic strategy. These are often offered through state partnerships with private stakeholders or regional development councils.

Companies aligned with sector-specific goals—especially in agri-business, manufacturing, and technology—gain access to competitive funding.

The Bottom Line

Grants remain one of the smartest ways to fund a startup without giving up equity or falling into debt.

Indiana’s 2025 funding offers something for nearly every entrepreneur—tech pioneers, manufacturers, local shops, and underrepresented founders.

Success depends on staying informed, preparing strong applications, and acting early before deadlines pass.