Small Business Loans & SBA Loans in Texas

Texas has over 3 million small businesses, so there’s no shortage of small business loan options. Explore which options are right for your Lone Star State business.


Types of Texas Small Business Loans

The Texas GDP ($2.6 trillion) makes up nearly 10% of the entire U.S. GDP (roughly $28 trillion).

At the same time, 99.8% of all businesses in Texas are small businesses. Small businesses are a massive contributing factor to a massive Texas economy. Texas is very friendly to small businesses, with no corporate income tax and simplified state business regulations.

Many of those small businesses have or have had a need for outside funding at some point, so, small business loan options in the Lone Star State are aplenty, whether you’re based in Houston, Lubbock, Dallas, Ciudad Juarez, or somewhere in between.

SBA Loans

SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.

The SBA has district offices in Dallas, El Paso, Houston, Lower Rio Grande Valley, San Antonio, and West Texas.

Line of Credit

Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.

Term Loan

Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.

Equipment Finance

With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.

Accounts Receivable Financing

Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.

Texas Small Business Loan Options

Several non-profits service low-interest loans to small businesses that set up shop in the Lone Star State. Options may vary depending on your city. Learn more about specific options in Austin, Houston, Dallas, and San Antonio.

Business & Community Lenders of Texas offers working capital and an SBA 504 program, with offices in Austin, Dallas, and San Marcos.

PeopleFund has become very popular for microloans and other lending projects up to $5 million, due to their BIPOC and SBA loan programs.

Interest rates vary from 7-15%. Max term of 84 months.

Texas Trust Credit Union has several branches throughout the state that offer real estate loans, permanent financing, and business credit. Check in with your local branch to learn more about its small business options.

Texas Capital Bank provides a strong array of commercial loans for public and private companies with annual revenue up to $25 million.

Business Investment Growth Austin offers options for small businesses driving innovation in Austin. Startups may qualify for up to $15,000 (3+ months in business). Growing companies may qualify for up to $35,000 (at least 1 year in business).

Bank of Texas is a preferred SBA lender and offers both SBA 7(a) and SBA 504 loans.

Cadence Bank is an SBA-preferred lender. It offers a variety of SBA loans, including SBA 7(a) & 504 loans, SBA Express loans, and CAPLines.

For a large, SBA-backed loan, look to Ready Capital. They offer loans up to the standard $5 million with offices in Irving and Austin.

How to apply for a small business loan

If you’re looking for a small business loan today, Lendio can help you quickly apply for and understand business loan options for your Texas business. Applying is free and doesn’t impact your credit score.*

*Filling out an application for business funding and submitting to our funding partners will not impact your personal credit score, but, depending on the product, accepting an offer may result in a hard inquiry.

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

See which credit cards you qualify for before choosing the one that best suits your business needs and offers the cash rewards you’re looking for.

STEP
3
Get funded.

Once you choose a card, you can get approved in as little as 7-10 days.

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Speak with a Texas representative

Have additional questions specific to Texas loan options? Connect with a local Lendio rep to further understand the small business lending landscape in your community.

How To Start A Business In Texas

Starting a business in the Lone Star State? Follow this guide to get started.

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FAQ about Small Business Loans in Texas

Because the state is so focused on attracting and incubating small businesses, you will find many Texas organizations and agencies that are set up to help your company thrive. The non-profit SCORE provides mentoring to entrepreneurs via its chapters established throughout the state. In addition, the SBA has set up many Small Business Development Centers (SBDCs), throughout the Lone Star State to provide resources for small businesses. Moreover, the Texas Economic Development Corporation, a state-run program, exists to connect Texan businesses with helpful resources and information.

  

New and existing companies alike may qualify for grant programs specific to the state of Texas. The Texas Workforce Commission offers a Skills for Small Business Grant, and the state government offers the Texas Development Fund. Additionally, the federal government keeps a list of grants for small businesses, many of which are especially focused on farming or rural businesses.

 

To qualify for a small business loan in Texas, you need to officially launch your business Texas-style. You need to choose a structure for your business—sole proprietorship, corporation, or LLC (limited liability company). Usually, incorporated businesses have to register with the Texas Secretary of State, while sole proprietorships often register with their county, so be sure to check your local regulations before conducting business. In many cases, you will also need a business license from the Texas Business Permit Office

Once your company is made official and licensed, if necessary, you are ready to apply for loans in Texas. Typical loan requirements include a minimum credit score, time in business, and monthly revenue. Of course, each lender will have its own requirements and qualifications, so take time to do your homework on each one.

Deciding on the right loan for you will depend on your business needs, the size of your business, how long you’ve been in business, and your creditworthiness. To find the best rates for you, always research and compare loan options across local, national, and online financiers. Online platforms like Lendio help you do this in just a few minutes—and at no cost to you.

A Texas small business loan can help your company reach those beautiful stars shining over Texas. The state’s lenders provide a broad array of grant and loan options, including options that are designed for farmers or other rural businesses. Even if your Texas business has strong cash flow at present, financing can be just what you need to expand and become even more profitable. Learn more about what Texas loans are available for your businesses here.

An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.

Compare loan options from multiple funders.

Applying is free and won’t impact your credit.
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