Criteria  |  History  |  Success Stories  |  Board  |  Loan Committee  |  Member Banks
Mezzanine funds help companies step up

The Indiana Community Business Credit Corp. meets the need for growth capital that can supplement financing available from a senior lender for promising firms that, for various reasons, do not qualify for such loans from conventional lenders.

The Credit Corp. is a privately owned company that manages a pool of risk capital provided by Indiana banks (currently 34). One of the 34 banks must be a primary lender with at least a 50% exposure. The Credit Corp. takes a subordinate collateral position. The Credit Corp. participates in projects that need at least $200,000 in new financing. The project funding can be used for any legitimate business purpose, including working capital.

A typical Credit Corp. project may be structured as follows:
50%   Member financial institution, conventional rates, revolving or term.
50%  Credit Corp. - Flexible amortization. Rate is made up of a current coupon (Prime + 3-5%) and a variable transaction fee targeted to bring the total cost to 18-22%.

The pricing and structure are established to allow a borrowing company to return to conventional financing as soon as possible. However, the availability of a long amortization provides maximum flexibility in matching debt service to a company's cash flow.


History & Performance

Cambridge Capital has managed the Credit Corp. since its founding in 1986. Since then, the Credit Corp. has participated in projects totaling over $240 million with over $50 million provided directly by the Credit Corp. to 117 companies.

For more information on the Credit Corp., 317-843-9704.
Charles Kennedy
Please do not forward non-public information through this website
ext. 124 ckennedy@cambridgecapitalmgmt.com


Success Stories

Trustworthy relations between customers and utilities
Indianapolis-based partners in a management service company for utilities purchased the company from its founding utility. As the utility industry grows, this new private company manages customer calling, credit and collections for several utilities - a number of them in Indiana.

The Credit Corp. helped finance the purchase and upgrade of equipment, helping solidify more than 30 jobs.

"Without them, it would not have happened," says a principal in the new company.

Saving energy one factory at a time
An eight-year old company that has patented techniques for performing industrial energy audits faced a hurdle: limited capital was blocking needed expansion. The Credit Corp. supplied mezzanine financing for the company to grow and unlock new industrial markets.

With an improved capital foundation, the company is performing energy audits for more industrial locations and installing energy-conserving geothermal systems.


Indiana Community Business Credit Corporation Board of Directors

The Credit Corp. has an impressive board that oversees the operation and a seasoned loan committee to provide input when credits are reviewed.

Tony Albrecht Lafayette Bank & Trust, Lafayette
Gene Cavanaugh 1st Source Bank, South Bend
Brian Chaffin Marine Bank, Indianapolis
Dave Maraman M & I Bank, Indianapolis
Daryl Moore Old National Bank, Evansville
Mike Newbold Huntington Bank, Indianapolis
J. Daniel Philpott Fifth Third Bank, Indianapolis
Robert Powell U.S. Bank, Richmond
J. Albert Smith JPMorgan Chase Bank, Indianapolis
Kevin Smith KeyBank, Indianapolis
Scott Thiems Regions Bank, Indianapolis


Ex Officio

Richard Mourdock State Treasurer
Judith Ripley Department of Financial Institutions


Indiana Community Business Credit Corporation Loan Committee

Mike Alerding Alerding & Co., LLC, Indianapolis
Glenn Clevenger First Financial Bank, Hamilton, OH
Matthew Highbarger KeyBank, South Bend
Oz Morgan STAR Financial Bank, Anderson
Gregory O'Connor M & I Bank, Indianapolis
Thomas Schlehuber KeyBank, Indianapolis
Matt Tuohy Indiana Economic Development Corporation, Indianapolis

Indiana Community Business Credit Corporation Member Banks

Monroe Bank Bloomington
Main Source Bank Brookville
STAR Financial Columbia City
Irwin Union Bank & Trust Columbus
Fifth Third Bank Evansville
Integra Bank Evansville
Old National Bank Evansville
Fifth Third Bank of Central Indiana Hartford City
First Financial Bank Hartford City
First Federal Savings Bank Huntington
First Internet Bank of Indiana Indianapolis
Marine Bank Indianapolis
M & I Bank Indianapolis
Indiana Bank & Trust Company Indianapolis
Huntington National Bank of Indiana Indianapolis
JPMorgan Chase Bank Indianapolis
KeyBank, NA Indianapolis
The National Bank of Indianapolis Indianapolis
National City Bank of Indiana Indianapolis
Salin Bank & Trust Co. Indianapolis
Regions Bank Indianapolis
Charter One Bank Indianapolis
Harris Bank Kokomo
Lafayette Bank & Trust Co. Lafayette
Horizon Bank Michigan City
Citizens Bank Mooresville
JPMorgan Chase Bank, Kentucky New Albany
PNC Bank New Albany
Community Bank Noblesville
North Salem State Bank North Salem
US Bank Richmond
1st Source Bank South Bend
Wells Fargo Bank South Bend
Lake City Bank Warsaw