Best Small Business Loans in Texas

Small business loans in Texas can help local companies access funds for inventory, payroll, equipment, commercial real estate and more. Here is how to get a business loan in Texas.

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Best small business loans in Texas

by Jill A. Chafin and Tara Mastroeni | Edited by Abigail Bassett and Janet Schaaf | February 27, 2024
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderBest for…Max. loan amountTerm lengthMin. interest rateTime in business
Startups$50,000Not disclosedNot disclosedLess than 24 months

Fast funding$25,000Up to 84 months7.00% to 15.00%Less than 24 months

Nonprofit financing$5,000,000Up to 60 monthsPrime + 2%24 months

Microloans$35,00012 to 72 monthsNot disclosed3 months

Minority entrepreneurs$500,0005 to 120 months9.90%Not disclosed
Low-interest loansNot disclosedNot disclosedNot disclosed24 months
Online term loans$500,0006 to 84 months15.22%24 months
SBA loans$5,000,000120 to 300 monthsBase + 3.00%24 months
Nationwide banking$5,000,00012 to 180 months6.25%6 months

Learn more about how we chose our picks.

State-wide loan options for Texas small businesses

Here are some business lenders that operate throughout the entire Lone Star State.

Business and Community Lenders of Texas (BCL): Best for startups

Loan amounts$20,000 to $50,000
Starting interest rateNot disclosed
Term lengthNot disclosed
Minimum credit scoreNot disclosed
Minimum time in businessLess than 24 months

 Ideal for businesses that have been operating for less than two years

 Free business coaching services included for the life of the loan

 Flexible use of funds

 Lack of transparency about rates, terms and potential fees

 Small loans amounts for startups

 Doesn’t list credit score requirements

See Your Business Loan Offers

PeopleFund: Best for fast funding

Loan amountsUp to $25,000
Starting interest rate7.00% to 15.00%
Term lengthUp to 84 months
Minimum credit score600
Minimum time in businessLess than 24 months

 Get the funds you need in a flash

 Offers business advising and classes

 Interest rate discounts for women and veterans

 Limited physical branches

 Small loan amount for Flash Funds

 Doesn’t offer personal banking options

See Your Business Loan Offers

Texas Capital Bank: Best for nonprofit financing

Loan amountsUp to $5,000,000
Starting interest ratePrime + 2%
Term lengthUp to 60 months
Minimum credit score640
Minimum time in business24 months

 High loan amounts for nonprofit financing

 Competitive interest rates

 Offers special programs and business grants

 Traditional banks tend to have stricter eligibility requirements

  Doesn’t list estimated approval and funding times

See Your Business Loan Offers

Local small business loans in Texas

Some lenders focus on serving Texas businesses in specific metro areas. Here are some small business lenders who may be local to your area:

Business Investment Growth Austin (BiG Austin): Best for microloans

Loan amountsUp to $35,000
Starting interest rateNot disclosed
Term length12 to 72 months
Minimum credit scoreNot disclosed
Minimum time in businessThree months

 Short time-in-business requirement

 Offers various business training programs and workshops

 Minimal processing costs

 Lack of transparency about interest rates, fees and credit score requirements

 All business loans require collateral

 Longer funding times compared to online lenders

See Your Business Loan Offers

LiftFund: Best for minority entrepreneurs

Loan amounts$500 to $500,000
Starting interest rate9.90%
Term length5 to 120 months
Minimum credit scoreNot disclosed
Minimum time in businessNot disclosed

 Provides business networking opportunities and entrepreneurship programs

 Helps build business credit

 Offers customer support in Spanish

 Loans only available in selected states

 Lack of information regarding eligibility requirements

 Doesn’t fund all industries

See Your Business Loan Offers

Austin Family Business Loan Program: Best for low-interest loans

Loan amountsNot disclosed
Starting interest rateNot disclosed
Term lengthNot disclosed
Minimum credit scoreNot disclosed
Minimum time in business24 months

 Interest rates below market values

 Flexible funds to cover a variety of business expenses

 Help enhance the overall quality of life in the Austin area

 Lack of information on loan amounts, rates and eligibility criteria

 Must meet the SBA size standards

 Must supply a 10% equity injection as collateral

See Your Business Loan Offers

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Nationwide small business loans for Texas

If none of the above small business lenders in Texas suit your needs, consider a nationwide option instead. Here are some of our top picks:

Funding Circle: Best for online term loans

Loan amounts$5,000 to $500,000
Starting interest rate15.22%
Term length6 to 84 months
Minimum credit score660
Minimum time in business24 months

 Range of loan amounts with flexible terms

 No prepayment penalties

 Approvals in as fast as 24 hours

 Doesn’t report to all credit bureaus

 Collateral and personal guarantee required

 Doesn’t fund all industries

See Your Business Loan Offers

SBA: Best for SBA loans

Loan amountsUp to $5,000,000
Starting interest rateBase + 3.00%
Term length120 to 300 months
Minimum credit score680 (recommended)
Minimum time in business24 months (recommended)

 Broad eligibility requirements

 Capped interest rates

 Provides assistance via SBA resource centers

 Collateral and/or down payment could be required

 Low-credit borrowers generally don’t qualify

 Longer application process than traditional or online business loans

See Your Business Loan Offers

Bank of America: Best for nationwide banking

Loan amountsStarting at:

  • $1,000 for cash-secured lines of credit
  • $10,000 for unsecured term loans
  • $250,000 for secured term loan

Starting interest rate
  • 6.25% for commercial real estate*
  • 7.00% for secured term loans*
  • 7.50% for unsecured term loans*
Term length12 to 180 months
Minimum credit score670 for unsecured loan products
Minimum time in business
  • Six months for cash-secured lines of credit
  • 24 months for other business loan products


 A reputable bank with a strong nationwide presence

 Offers a range of small business solutions

 Interest rate discounts for Preferred Rewards for Business members

 Lack of information regarding eligibility for all loan products

 Doesn’t list maximum rate ranges

 Most products only have interest rates listed rather than APR, making it hard to compare with other lenders

*The rates stated reflect the interest rate, rather than the annual percentage rate (APR), which includes interest and fees, so it may be difficult to estimate your final rate until you receive a copy of your loan agreement.

See Your Business Loan Offers

What to know about small business lending in Texas

Texas is one of the nation’s largest states, with 3.1 million small businesses calling it home. Small businesses account for over 99% of businesses of all sizes in the state.Luckily, the Lone Star State offers plenty of resources and funding to help those small businesses succeed. Here’s what you need to know about small business loans in Texas.

Types of business loans in Texas

SBA loans

Backed by the U.S. Small Business Administration (SBA), SBA loans help small business owners who don’t qualify for traditional financing get the capital they need to grow and expand their businesses. The SBA 7(a) loan is ideal for day-to-day expenses, while the SBA 504/CDC loan can fund more significant projects, like expansions or heavy equipment.

Term loan

Business term loans provide a lump sum of cash at once, allowing you to tackle short- or long-term business needs. Repayment terms for short-term business loans are typically three to 24 months with daily or weekly payments. If you need access to more funds with extended repayment terms, long-term business loans can go up to $5 million with terms of 10 years or longer.

Line of credit

A business line of credit is similar to a business credit card, letting you borrow up to your credit limit as often as needed. Funds can be used for a range of purposes, such as inventory, payroll, utilities or covering seasonal dips in revenue. You only pay interest on what you withdraw, although some lenders charge additional maintenance fees.

Equipment financing

Equipment financing and equipment leasing can help companies acquire, repair or upgrade equipment and machinery needed to keep business running smoothly. Equipment loans typically have less strict eligibility requirements since the loan is secured by the equipment. Low-credit borrowers can also consider equipment loans for bad credit.

Other funding options for your small business in Texas

Now that you have a better idea of where to find funding, it’s time to look at some other resources for small businesses in Texas. While this is not an exhaustive list of all the help that’s available for your business, it should be enough to get you started.

Texas Governor’s Office of Small Business Assistance

Texas has a wide variety of resources for small business owners. While banks and nonprofit lenders can provide financing, the Texas Governor’s Office of Small Business Assistance offers support for small businesses, including how to start a small business in Texas, help with getting permits and licenses and assistance with regulatory compliance, as well as hosting webinars and in-person summits.


State and local organizations and nonprofits offer small business grants in Texas to help your small business succeed. Although competition can be fierce, it’s worth applying to get free funds for your business. Here are a few Texas small business grants worth checking out:

  • The Center for Women Entrepreneurs StartHER Grant: StartHer Grants offers 25 grants worth up to $5,000 each to majority-women-owned businesses in Texas with five or fewer employees.
  • Texas Workforce Commission (TWC) Skills For Small Businesses Grant: The Texas Workforce Commission provides grants to help cover the cost of training full-time employees at a local community college or technical school. They’ll provide $1,800 for each new hire and $900 to train employees who have been at the company for more than a year.
  • Texas Enterprise Fund: The Texas Enterprise Fund (TEF) offers grants to businesses that are looking to expand, provided that they create new full-time jobs in the process. Although there are other eligibility requirements, it’s important to note that eligible businesses must create at least 75 new jobs in urban areas or 25 new jobs in rural ones.

Coaching and mentorship

Tapping into coaching and mentorship programs can often make a big difference for small business owners. While a few of the lenders on this list also offer business coaching in addition to funding, here are a few more resources to check out if you’re looking for personalized guidance:

  • SCORE: SCORE is a national organization with a mission to strengthen small businesses with coaching and mentoring. They have branches throughout multiple cities in the Lone Star State, including Austin, Houston, Dallas and Fort Worth.
  • Economic Growth Business Incubator (EGBI): Residents of Austin and Central Texas may benefit from the area’s Economic Growth Business Incubator. The organization’s mission is to provide training, coaching and support to small business owners who may otherwise face barriers to their success.
  • AVANCE Child Care Business Coaching: Headquartered in San Antonio with affiliate chapters around the state, AVANCE offers free coaching for child care businesses and professional development.

Small business development centers

In addition to providing SBA loans in Texas, the U.S. Small Business Administration also operates small business development centers (SBDCs) across the country. These centers are designed to give small business owners the counseling, training and tools that they need to succeed.

You can find your closest SBDC by visiting the link above and putting your five-digit zip code into the locator tool at the bottom of the page.

Texas business loan requirements

Once you have a better idea of where to find funding options for Texas small businesses, it’s a good idea to start thinking about how to pull your loan application together. While each lender will impose their own specific business loan requirements, here’s a general overview of what you’ll likely need to provide.

 Credit score

Two of the most impactful factors that lenders will consider during the loan application process are your personal FICO Score and business credit score. As a rule of thumb, the higher these scores are, the more likely you are to be approved and the better the interest rate you’re likely to receive.

Reporting for both scores is based on a number of factors, but in either case, payment history and debt usage play a big role.

 Business plan

Your business plan will provide the lender with an overview of your business model.

You should be sure to include details on how the loan funds will be used, specifics on your company’s current financial standing and your plan for how you intend to generate enough revenue to comfortably pay back the loan.

 Annual revenue

Annual revenue refers to the amount of money your business has made over the past year — before taxes. Most small business lenders will list their minimum annual revenue under their eligibility requirements, which can range $36,000 to $480,000 or higher, with some lenders accepting lower earnings for startups.

 Time in business

Since not all small businesses succeed, it’s generally considered riskier to lend to younger businesses. As a result, many traditional financial institutions impose a two-year time-in-business requirement for lending purposes.

Don’t worry, though — if your business is newer, it’s still possible to find funding. You’ll just need to concentrate on finding a lender that specifically offers startup business loans instead.

 Collateral or personal guarantee

Depending on your lender or type of loan, you may be asked to secure the loan with collateral or sign a personal guarantee. Providing these often makes it easier to be approved for the loan.

However, in exchange, you could face some fairly steep consequences if you default. Offering collateral gives the lender the right to repossess your asset in the event that you are unable to keep up with your payments. Meanwhile, a personal guarantee means that you’ll personally be on the hook for repaying the loan if your business is ever unable to continue footing the bill.

How to apply for a small business loan in Texas

Follow these steps to get a small business loan in Texas:

Step 1: Decide what type of business loan you need

Research the different types of small business loans to find the best option that fits your business needs. For example, if you want flexible funding that covers a range of expenses, consider a working capital loan. Note that some lenders impose limitations or restrictions on industries they fund, as well as how funds are spent.

Step 2: Determine your eligibility

Review the lender’s criteria regarding credit score, time in business, annual revenue and more to ensure it’s a good match for your situation. Boosting your business credit profile before applying for a small business loan can help increase the chances of securing the best rates and terms.

Step 3: Compare small business lenders

Not all lenders are created equal. Spend some time reading small business lender reviews and scouring the lender’s website for any red flags. Watch out for no-credit-check business loans or any offer that sounds too good to be true.

Step 4: Gather required documents

Lenders often ask for additional supporting documentation with your loan application. While there is no hard-and-fast rule as to what’s required, some commonly requested supporting documents are:

Step 5: Submit and review offers

You can generally submit a small business loan application online, often receiving a response within minutes. However, some traditional banks and credit unions may require an in-person appointment. Read the fine print before signing to ensure you understand all the details, including additional fees.

How to compare Texas business loans

When comparing small business lenders in Texas, it’s important to consider the overall cost of the loan and whether you can keep up with payments. Here’s a closer look at the different factors that you should consider during your search.

  • Interest rates: Business loan interest rates can vary by lender and loan product. While variable APRs with a low intro rate can seem enticing, it’s generally better to go with a fixed APR so your payments don’t change. That stability can make it easier to stick to your business budget.
  • Loan term: Loans with longer terms usually come with lower monthly payments, but in exchange you’ll pay more in interest charges over time. In contrast, loans with shorter terms have higher monthly payments, but you’ll pay less in interest overall.
  • Extra fees: Some lenders charge an origination fee to cover the administrative costs of generating a new loan while others charge prepayment penalties or late payment fees. Make sure to add these to the overall cost to help you find the best option for your wallet.
  • Funding time: If you need funds fast, you should prioritize alternative lenders offering quick business loans. However, if you can afford to wait several weeks or months, SBA loans and traditional banks usually offer better rates and more flexible repayment terms.
  • Overall transparency: Consider the overall transparency of the lender regarding the loan’s repayment terms. Don’t be afraid to reach out to the lender for more clarification if you have any questions.

How we chose the best small business loans in Texas

We reviewed the leading local and nationwide lenders to determine the best small business loans in Texas. To make our list, lenders must meet the following criteria:

  • Minimum time in business: Options available for startups and companies who have operated for three to 24 months.
  • Minimum credit score: Personal credit score requirements of 680 or lower.
  • Rates and terms: We prioritize lenders with a range of loan amounts, competitive rates, limited fees, flexible repayment terms and APR discounts.
  • Repayment experience: We consider each lender’s reputation and overall business practices. We favor lenders that report to all major credit bureaus, offer reliable customer service and provide extra support to customers, like free business coaching or business rewards programs.

Frequently asked questions

Overall, business loan requirements tend to be fairly similar regardless of where you are located. Most lenders want to see that your business has a decent credit score, a stable business history and sufficient revenue to pay back the loan. You will likely need to pledge collateral to help reduce lender risk when applying for business loans for new businesses.

Every lender is different, so there’s no hard-and-fast rule as to whether it’s hard to get a Texas business loan. However, traditional financial institutions, like banks or credit unions, typically tend to impose stricter qualifying requirements than other lenders.

If you are unable to qualify for a bank loan, you may want to consider exploring the nonprofit and government lenders above. Online lenders, also known as alternative lenders, can be another good option.

Every lender imposes different qualifying requirements, but as a rule of thumb, most lenders would like to see a personal credit score of 625 or higher.

If your score is lower than that, consider investigating bad credit business loans instead.