Texas Small Business Loan Options
SBA 7(a) Loans
Best for: Established businesses with 2+ years history, strong cash flow
The SBA 7(a) is the most versatile small business loan in Texas. It can be used for working capital, equipment, real estate, debt refinancing, and business acquisition. Texas has one of the highest concentrations of SBA preferred lenders in the country — Wells Fargo, Chase, Frost Bank, and Texas Capital Bank all participate actively.
SBA 504 Loans
Best for: Commercial real estate purchase or major equipment ($150K+)
The 504 pairs a private lender (50% of project) with a Certified Development Company (40%) and your equity (10%). Texas CDCs include BizCap, BusinessFirst CDC, and LiftFund. The fixed rate (typically below market) makes this ideal for Texas businesses investing in property or large machinery.
SBA Microloans
Best for: Startups, micro-businesses, and underserved entrepreneurs
Disbursed through Texas nonprofit intermediaries — LiftFund (formerly Acción Texas), PeopleFund, and Business Access are the major ones. These lenders often accept lower credit scores and shorter business history than banks. Technical assistance and mentoring are often included.
Business Lines of Credit
Best for: Businesses with fluctuating cash flow or seasonal revenue
Texas banks and online lenders like OnDeck, Kabbage (now American Express), and Bluevine offer revolving credit lines. You only pay interest on what you draw. Qualification typically requires 1+ year in business and $100K+ annual revenue for bank lines; online lenders are more flexible.
Texas Capital Access Program (TexCAP)
Best for: Small businesses rejected by conventional bank lending
TexCAP is a state-backed loan loss reserve program — the state and borrower each contribute a small premium (1–3% of loan amount) to a reserve fund, which reduces the lender's risk. This makes banks willing to approve loans they'd otherwise decline. Contact the Texas Department of Agriculture or local EDCs to find participating lenders.
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Compare Texas Business Loan Options — FreeWhat You Need to Qualify for a Texas Business Loan
Business loan underwriting looks at the "5 Cs" — Capacity, Capital, Collateral, Conditions, and Character. In Texas, lenders weight these differently by loan type:
| Requirement | SBA 7(a) | Online Lender | Microloan |
|---|---|---|---|
| Credit score (personal) | 650+ | 600+ | 550+ |
| Time in business | 2+ years | 1+ year | New OK |
| Annual revenue | $100K+ | $100K+ | Variable |
| Collateral | Often required | Sometimes | Rarely |
| Business plan | Yes | No | Yes |
| Approval time | 2–4 weeks | 1–3 days | 2–4 weeks |
Texas-Specific Small Business Resources
Texas has a well-funded small business support ecosystem. Use these before paying for private advice:
Texas SBDC Network
14 regional Small Business Development Centers funded partly by the SBA and University of Texas system. Free confidential business advising, financial projections, and loan application prep. sbdctexas.org
LiftFund (formerly Acción Texas)
Largest CDFI microlender in the US south. Specializes in businesses underserved by traditional banks — minority-owned, women-owned, immigrant-owned Texas businesses. Based in San Antonio with statewide reach.
PeopleFund
Austin-based CDFI with SBA Microloan authority. Focuses on small loans ($1,000–$250,000) for Texas businesses that can't access traditional bank credit. Strong support for Austin, Central Texas, and East Texas entrepreneurs.
Texas Economic Development Corporation
State-level economic development body with resources for larger businesses creating Texas jobs. Administers the Texas Enterprise Fund and can connect businesses with local EDC programs by county.
Frequently Asked Questions
What SBA loans are available for Texas small businesses?
Texas businesses can access SBA 7(a) loans (up to $5M), SBA 504 loans (up to $5.5M for real estate and equipment), and SBA Microloans (up to $50,000). Texas has 11 SBA-approved Certified Development Companies and over 400 active SBA lenders.
What is the Texas Capital Access Program?
TexCAP is a state-funded loan loss reserve program that encourages Texas banks to approve small business loans they might otherwise decline. Loans up to $250,000 are eligible. Both the state and borrower contribute a small premium (1–3%) to a reserve fund.
How much can a small business borrow in Texas?
Amounts vary by loan type: SBA Microloans ($500–$50K), business lines of credit ($5K–$500K), SBA 7(a) loans (up to $5M), SBA 504 loans (up to $5.5M), and commercial real estate loans vary by property value and cash flow.
What credit score do I need for a business loan in Texas?
SBA 7(a) loans require 650+. Traditional bank business loans prefer 680+. Alternative lenders work with 600+ but at higher rates. For businesses under 2 years, the owner's personal credit is the primary underwriting factor.
Are there grants for small businesses in Texas?
Yes — the Texas Enterprise Fund offers grants for job-creating projects, the Texas Workforce Commission has training grants, and many cities/counties operate local small business grant programs. Check with your local economic development corporation.
Can a Texas startup get a business loan without revenue?
Pre-revenue startups should look at SBA Microloans through Texas nonprofits (LiftFund, PeopleFund), personal loans up to $50,000 used for business, SBIR/STTR grants for R&D startups, or angel networks like Central Texas Angel Network.
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Compare Texas Business Loan Options — FreeRates shown are estimates. Actual terms depend on business financials, credit profile, and lender requirements.