Bloomington, Indiana – Community development efforts across southwest central Indiana are set to gain new momentum in 2026 following the announcement of fresh lending partnerships by CDFI Friendly Bloomington, an organization focused on expanding access to capital for projects that strengthen local communities.
The newly announced partnerships will open additional pathways for financing small businesses, affordable housing initiatives, and child care projects across 13 Indiana counties. CDFI Friendly Bloomington, often referred to as CFB, says the agreements are designed to address long-standing gaps in traditional lending by pairing flexible capital with local insight and support.
One of the key components of the announcement is a new collaboration with Allies for Community Business, a Midwest-based Community Development Financial Institution. Through this partnership, entrepreneurs operating within Bloomington city limits will have increased access to loan funds aimed at helping them start or expand their businesses. The joint effort includes a $50,000 loan program that emphasizes not only access to capital, but also business coaching and related services.
CFB and Allies for Community Business will work together to identify entrepreneurs who can benefit from both financing and guidance, with a particular focus on businesses located in Bloomington’s Urban Enterprise Zone. Organizers say this approach recognizes that many entrepreneurs need more than just a loan to succeed, especially in neighborhoods where resources have historically been limited.
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Allies for Community Business offers loans ranging from $500 to $500,000 and operates with a mission centered on helping entrepreneurs from all backgrounds build businesses that create long-term, generational wealth. By partnering with a local organization like CFB, the lender aims to better connect with entrepreneurs who might otherwise be overlooked by conventional financial institutions.
“A4CB is excited to provide more loans to Indiana entrepreneurs by partnering with local organizations who know their neighborhoods best,” said CEO Brad McConnell. “CDFI Friendly Bloomington is working to grow small businesses, and A4CB can provide flexible terms to entrepreneurs looking for small or larger loans. Details on our loans and free coaching are available at a4cb.org.”
CFB leaders say entrepreneurs interested in learning more about the program are encouraged to reach out using the link provided in the press release. The goal, they note, is to lower barriers to entry while offering practical support that helps businesses survive and grow over time.
Beyond Bloomington, CFB also announced a significant new line of credit that will expand financing opportunities throughout the broader region. The organization has secured a $2.25 million line of credit through a partnership with Old National Bank, German American Bank, and First Financial Bank. All three institutions have a presence in the 13-county area served by CFB.
This regional line of credit is intended to support projects focused on affordable housing, child care, and small business development. According to CFB, the funding will be offered with competitive interest rates and a strong emphasis on community impact, targeting projects that struggle to secure financing through traditional channels.
“For housing, child care, and small businesses across Southwest Central Indiana, access to financing can be challenging,” said Old National Bank Market President Scott Shishman. “When banks can partner with organizations like CDFI Friendly Bloomington to help get more projects across the finish line, it’s a win-win for everyone.”
CFB officials say the partnership reflects a growing recognition among banks that community-focused organizations can play a critical role in identifying viable projects and reducing risk. By combining bank capital with CFB’s regional knowledge and mission-driven approach, the partners hope to accelerate development that directly benefits local residents.
Affordable housing and child care, in particular, remain pressing needs in many Indiana communities. Limited access to financing can delay or derail projects that would otherwise address workforce stability and quality of life. CFB says the new line of credit is designed to fill those gaps and move projects from concept to completion.
“Our mission is to unlock financing opportunities for people and projects across our region to move our communities forward,” said CFB Board President Tina Peterson. “When we have more affordable housing, better access to child care, and expansion of small businesses, it moves the needle on growth for Hoosiers in our part of the state.”
As 2026 approaches, CDFI Friendly Bloomington views these partnerships as a foundation for long-term impact rather than a short-term boost. By aligning local organizations, regional banks, and community-focused lenders, CFB aims to create a more inclusive financial ecosystem—one where entrepreneurs and community developers have the tools they need to turn ideas into lasting assets for their neighborhoods.
