# Funding Research — T00-DRIP

Grants, loans, incentives & certifications for The Daily Pour
SnS Hospitality Group LLC · South Bend / NW Indiana / St. Joseph County
Verified as of August 21, 2026 (ChatGPT research, sourced against official IEDC / SBA / Indiana pages — confirm each program directly with the agency/lender before relying on it). Supersedes the Aug 5, 2026 draft.
Bottom line (what changed): The best right-sized funding is the Indiana Legend Fund and an SBA Microloan — not the big IEDC incentives (EDGE / HBI / SEF). A single $50K trailer creating a few mostly part-time jobs is too small to win those discretionary economic-development packages. Chase the loans + certification now; revisit the IEDC incentives only at fleet scale (~10 trailers).
Two things to VERIFY before relying on them:

1. Indiana MBE/WBE status is contradictory. ResA (Aug 21) recommends Indiana MBE certification via IDOA, but prior research found Indiana Executive Order 26-17 (July 14, 2026) suspended the state MBE/WBE diversity programs. Confirm current status with IDOA before pursuing. Federal MBE routes (SBA 8(a), MBDA) may still be available regardless.
2. South Bend Enterprise Zone may be EXPIRED. The city page says its second renewal expired Dec 31, 2023. Do NOT put EZ credits in any projection until the South Bend UEA confirms it's active and your base address qualifies. (The business plan's Enterprise Zone mention needs this confirmation or removal.)

## Tier 1 — Pursue Now (right-sized for one trailer)

### 1Indiana Legend Fund / SSBCI (IEDC) — HIGH FIT

Type | Loan (not a grant) — via participating mission-based lenders
Amount | $5,000 – $1,000,000; terms set by each lender
Why it fits | Correct scale for a ~$50K trailer; program explicitly emphasizes historically underserved / minority-owned businesses. Indiana-HQ'd, Black-owned startup is a strong candidate. No published minimum job count.
How to apply | Pre-apply through a participating lender listed at iedc.in.gov/ssbci. Confirm trailer purchase + buildout + equipment qualify (page emphasizes operating capital). Allow several weeks+.
Action | Prepare a lender packet: trailer quote, equipment schedule, 24-mo projections, owner contribution, ownership structure, job plan.

### 2SBA Microloan (via approved intermediary) — HIGH FIT

Type | Loan up to $50,000 (SBA avg ≈ $13,000), through nonprofit intermediaries
Why it fits | Max matches the ~$50K trailer budget almost exactly. Startups can qualify (subject to repayment ability, business plan, owner contribution, intermediary underwriting).
How to apply | Apply through an SBA-approved Indiana microloan intermediary — not directly to SBA. See sba.gov/loans/microloans. Expect underwriting + technical-assistance requirements.
Action | Identify an Indiana intermediary; request their startup underwriting checklist; compare rate/collateral/equity vs. the Legend Fund lender before choosing.

### 3Indiana MBE Certification (IDOA Supplier Diversity) — HIGH VALUE ⚠️ verify status

Type | Certification, not funding. Improves visibility/eligibility for Indiana government & university procurement (catering, concessions, event beverage contracts).
Eligibility | Business must be ≥ 51% minority-owned, managed, and controlled. Because SnS Hospitality is multi-member (Sam 85% via Holdings / Kiowa up to 25%), the OA voting rights & actual control will be scrutinized — likely OK at 85%, but confirm.
⚠️ Status flag | Contradiction to resolve: EO 26-17 (7/14/2026) reportedly suspended state MBE/WBE programs. Confirm with IDOA before investing effort. Consider federal routes (SBA 8(a), MBDA) as alternatives.
How to apply | in.gov/idoa/mwbe. Prepare formation records, EIN, OA, ownership evidence, résumés, licenses, financials, proof of control.

### 4South Bend Opportunity Fund — HIGH FIT (keep; already in motion)

Type | Below-market loan $1,000–$30,000 + free business coaching/mentorship
Eligibility | Business located in South Bend, prior-year revenue under $300,000 → pre-revenue startup is a perfect fit
Partners / Apply | 1st Source Bank + North Central Indiana SBDC · southbendin.gov/opportunityfund · Contact: Lisa Lopez (elopez@southbendin.gov)

## Tier 2 — Medium Fit / More Work

### 5SBA 7(a) Loan — MEDIUM-HIGH

Federally guaranteed loan up to $5M (a small 7(a) product fits here). Funds equipment, fixtures, inventory, working capital. A mobile food business isn't excluded, but a new entity must show owner investment, acceptable credit, management capacity, repayment ability. Apply via a participating bank or SBA Lender Match (sba.gov/loans/7a-loans). More demanding than a microloan.

### 6USDA REAP (Rural Energy) — LOW now

Renewable-energy / efficiency grant + guaranteed loan for rural small businesses. South Bend/Mishawaka likely fail the rural-location rule; a permanently based trailer site in an eligible smaller community west of South Bend might qualify for solar/battery. Verify the permanent project address via USDA rural eligibility before buying. MEDIUM only for a qualifying rural fixed site.

## Tier 3 — Fleet-Scale Future (revisit at ~10 trailers, NOT now)

These are discretionary IEDC economic-development agreements built for larger employers. At one trailer the payroll/ investment is too small to win them. They become viable only if you present a documented, committed phased 10-trailer rollout (site commitments, investment schedule, dozens of net-new jobs) — not ten hypothetical locations. Approach IEDC + local EDO before hiring/purchasing, since credits require pre-agreement.

Program | What | Fit at 1 trailer / at fleet
--- | --- | ---
EDGE payroll tax credit | Refundable credit on % of net-new-job withholding, up to 20 yrs | LOW / MEDIUM — too little payroll now
HBI investment tax credit | Nonrefundable credit on % of eligible capital investment | UNLIKELY / LOW-MED — $50K too small; mobile-equipment questions
Skills Enhancement Fund (SEF) | ~50% training-cost reimbursement, credential-bearing | LOW / MEDIUM — a central training academy for 10 trailers is the real case
DWD Employer Training / Next Level Jobs | Up to $50K training reimbursement, high-growth fields | LOW-MED — routine barista training likely outside approved occupations
OCRA CDBG | Community grants ($500K–$750K) to local governments | UNLIKELY — you can't apply directly; it's public-infrastructure money
Urban Enterprise Zone credits | State/local tax credits at a qualifying zone address | UNVERIFIED — South Bend zone may have expired 12/31/2023 (see warning above)

## Dead / Closed (kept for the record)

- Flagstar Bank BIPOC Grant — PROGRAM COMPLETED, all 35 awards distributed. Monitor Indiana Black Expo for future rounds.
- USDA Business Builder Award — TERMINATED July 15, 2025.

## Stacking Rules & Cautions

Potentially stackable (with written approval):

- Legend Fund or SBA financing + MBE certification
- Business loan + EDGE (on verified payroll) + HBI (on separately documented investment) + SEF — negotiated together as one IEDC package
- MBE certification + state/local procurement contracts
- USDA REAP + a loan for the non-grant portion of an eligible rural energy project

Restrictions:

- Never claim the same cost twice (e.g., SEF + DWD for the same training).
- HBI is nonrefundable — needs sufficient Indiana tax liability to use.
- EDGE applies only after contracted job/payroll performance.
- Enterprise-zone benefits attach to a specific qualifying address, not a mobile route.
- SBA + Legend Fund may not be stackable on the same collateral/project without both lenders' approval.

CPA review required (Tracie, Sept 1): Before modeling ANY tax credit, have an Indiana CPA confirm how it's claimed by a multi-member LLC and whether it passes through to the members. This is funding research, not tax or legal advice.

## Top 3 to Pursue Now

1. Indiana Legend Fund — prepare a lender packet, pre-apply with a participating lender for ~$50K.
2. Indiana MBE certification — first confirm EO 26-17 status with IDOA; verify Sam holds ≥51% ownership + control; then apply. Opens contracts, not startup cash.
3. SBA Microloan — find an Indiana intermediary, get their underwriting checklist, compare vs. Legend Fund.