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.
$20,000 to $50,000
Not disclosed
Not disclosed
Not disclosed
Less than 24 months
Business and Community Lenders of Texas is a Community Development Financial Institution (CDFI) offering startup business loans of up to $50,000 for Texas-based companies with less than a two-year business history.
Other financing options include the Small and Diverse Growth Fund for minority and women-owned businesses, rural business lending for businesses in communities with populations of 50,000 people or fewer and SBA 504 loans to purchase real estate or equipment. More established businesses can access loans ranging from $50,000 to $300,000 to fund their business needs from BCL’s Business Growth Fund.
Up to $25,000
7.00% to 15.00%
Up to 84 months
600
Less than 24 months
PeopleFund, another CDFI lender in Texas, offers quick business loans of up to $25,000 for low-credit borrowers. The organization’s mission is to provide economic opportunity for underserved communities in the state by providing a mix of resources, education and access to capital.
In addition to Flash Funds, you can apply for SBA 504 loans to finance real estate and large equipment purchases and SBA Microloans for smaller expenses. Although PeopleFund has branches throughout Texas, the fastest way to apply is using its streamlined online application.
Up to $5,000,000
Prime + 2%
Up to 60 months
640
24 months
Texas Capital Bank partners with Lendistry to offer financing of up to $5,000,000 to established nonprofit companies in Texas. In addition, for-profit businesses, contractors and startups can explore SBA loans, term loans, non-revolving lines of credit and commercial real estate financing. With branches in the Austin, Dallas, Fort Worth, Houston and San Antonio metro areas in Texas, and a location in New York, you’re bound to find something that fits your business needs.
Since Texas Capital Bank is a traditional lender, you’ll likely face stricter qualifying requirements than you would with an online or nonprofit lender. Alternatively, you can explore Lendistry’s business grants to see if there are any options for your Texas-based business.
Up to $35,000
Not disclosed
12 to 72 months
Not disclosed
Three months
Business Investment Group Austin (BiGAUSTIN) offers microloans to growing businesses in Austin, Texas, and its surrounding counties. Startups with at least a three-month business history can qualify for up to $15,000 in funds, while more established businesses with at least a year in business can borrow a total of $35,000.
As a local CDFI lender, BiGAUSTIN offers a range of entrepreneurship programs and workshops, helping emerging businesses in Texas grow and expand their ideas. Note that loan approval can take two to four weeks.
$500 to $500,000
9.90%
5 to 120 months
Not disclosed
Not disclosed
LiftFund is a CDFI lender that supports diverse and underserved entrepreneurs with limited access to capital. With a strong focus on startups, women and minority entrepreneurs, LiftFund provides low-cost funds for inventory, payroll, equipment, vehicles, commercial real estate and more.
Physical branches are located throughout Texas, including Dallas-Fort Worth, Houston and San Antonio, as well as in a few other states across the country. To be eligible, you’ll need to live in Texas or one of LiftFund’s other service areas and meet standard business loan requirements. Business owners in San Antonio can inquire about the Zero Percent Interest Loan Program.
Not disclosed
Not disclosed
Not disclosed
Not disclosed
24 months
The Family Business Loan Program partners with the city of Austin and the Department of Housing and Urban Development (HUD) to help businesses grow and expand, boosting the availability of local jobs.
The program offers low interest rates and flexible repayment terms, provided that borrowers meet the eligibility requirements and pledge to create one job for every $35,000 borrowed. Funds can be used to buy and renovate commercial real estate, purchase equipment, refinance existing business debt or cover working capital expenses.
$5,000 to $500,000
15.22%
6 to 84 months
660
24 months
Funding Circle is an online lender offering competitive business term loans and lines of credit. The biggest benefit of Funding Circle is its wide range of loan amounts and flexible terms, plus its quick funding times — with funds hitting your business bank account in as little as two business days.
However, Funding Circle has some strict requirements, such as needing a two-year business history and a minimum credit score of 660. In addition, you’ll need to put up collateral to secure your business loan.
Up to $5,000,000
Base + 3.00%
120 to 300 months
680 (recommended)
24 months (recommended)
The U.S. Small Business Administration (SBA) partners with financial institutions across the country to offer its SBA loan program, including the popular SBA 7(a) loan. Funds can typically be used for working capital, commercial real estate and equipment financing.
While the SBA guarantees a portion of its loans, offering lower rates and longer repayment terms, you will have to apply directly through an SBA-approved lender. There are SBA loan requirements you must meet, along with the lender’s individual criteria. Be prepared to face a lengthier application process and longer funding times.
Starting at:
12 to 180 months
670 for unsecured loan products
*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.
If you prefer to borrow from a traditional bank with in-person support, Bank of America could be a good option. As one of the largest banks in the U.S., Bank of America has over 6,000 branches across the country, including multiple locations throughout Texas. It offers a wide array of loan products, including secured and unsecured business term loans, secured and unsecured lines of credit, business auto loans, equipment financing, commercial real estate loans and SBA loans.
With Bank of America, you also get much more than just a business loan. If approved, you’ll receive expert insights into cash flow strategies, free business score monitoring and extra perks from the Preferred Rewards for Business program.
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.
