At the time, the region was divided into the Indiana Territory and the State of Ohio.
The goal of the change was to make migration to the western United States more attractive.
[1] The Land Act of 1804[2] superseded the Harrison Land Act of 1800,[3] introduced by William Henry Harrison, then the congressional delegate representing the Northwest Territory.
The goal of the legislation was to attract more immigrants to the western United States by allowing smaller tracts of land to be sold, rather than large tracts that individuals could not afford.
https://www.in.gov/history/2896.htm However, "The credit provision worked badly in terms of government revenue and was eventually repealed in 1820."