Rep. Mike Murphy (R-Indianapolis), an author for the bill, said encouraging economic growth is a top priority for the Indiana General Assembly.
"This bill is a great example of something the state can do to promote economic activity with no cost to taxpayers," said Rep. Murphy. "This bill is broad-based and goes right to where help is most needed - to Indiana's small business community. And this is not a free-money handout; this will merely make loans available to businesses already contributing to and sustaining our Hoosier economy."
HB 1636 passed with a unanimous vote of 98-0.
The bill allows participating financial institutions to offer loans to businesses with up to 100 employees and that bring in less than $5 million per year. The loans may be used to purchase real estate, renovate or construct a building or purchase equipment or inventory. The money also may be used as working capital.
The bill now must be passed by the Senate and signed by the governor before it becomes law.