Texas Small Business Loans  

With more than 99.8% of all businesses in Texas being locally owned, the state has a lot to offer for its entrepreneurs. Texas has a number of thriving industries, from oil and natural gas to hospitality to construction. Businesses in Texas need a diverse suite of financing solutions available to them in order to maintain a competitive edge and keep up with changing trends. Here are some of the top industries in Texas and their funding needs.

Agriculture: Texas has the most farms in the country, both in terms of size and number. From crops to cattle, Texas agriculture is a keystone of the state economy. But running a farm or ranch comes with a high amount of overhead costs, including equipment purchases, irrigation systems, and labor.

Real Estate: Real estate is a top industry in Texas, with real estate sales up 2% month over month in 2023. Real estate brokerages need to remain competitive, which often comes with a high price tag. Real estate agents must manage overhead costs such as insurance fees, advertising needs, and regulatory fines.

Healthcare: Healthcare is an important industry for any state and Texas is no exception. Private practices need up-to-date technology to provide the best care for their patients.

Oil and gas: Texas leads the nation’s production for energy and provides more than 25% of the nation’s natural gas reserves. The oil and gas industry is a top provider of jobs and with it comes high insurance costs, equipment needs, and more to keep production on track.

Texas is proud to be a small business-friendly state with endless opportunities available to small business owners. This land of opportunity has a wide variety of financing options available to small business owners who may require financing to help propel their business forward to bridge gaps in cash flow. Business owners may need extra capital to invest in more product, hire more staff, or cover costs to upgrade. Having access to reliable capital can make all the difference for your business and there are many types designed to fit a variety of business needs.

Short-term business loan: Texas businesses in seasonal industries or business owners with immediate business needs may find themselves needing access to capital fast. A short-term business loan provides a temporary solution to bridge any gaps in cash flow, help businesses make big purchases like a lease payment, or cover costs related to expansion.

Working capital loan: Texas small business owners rely on working capital to maintain regular business operations. When cash flow is disrupted – whether through foreseen or unforeseen circumstances – a working capital loan helps keep Texas small businesses afloat.

Equipment financing: Businesses in Texas typically rely on equipment to keep their operations running smoothly. Businesses in many industries like agriculture or construction often have equipment with high price tags. An equipment loan helps business owners finance the cost of new or pre-owned equipment.

As a small business owner in Texas, you have a variety of choices when it comes to business financing. In addition to customizable loan types, there are also a few types of lenders to choose from, each with their own advantages and disadvantages. It’s important to understand the pros and cons of all lenders and by evaluating the specific needs of your business and financial situation, to determine the best financing solution for your business.

Small Business Administration (SBA) 

The SBA is a government-backed institution that offers a range of loan programs for small businesses in Texas, including 7(a) loans, microloans, and CDC/504 loans. SBA loans typically offer lower interest rates and longer repayment terms than a traditional bank loan or alternative lender, but the application process can take several months and businesses must meet strict criteria in order to be eligible. Texas small business owners who don’t need capital immediately and meet the qualifications may find the SBA to be a good solution for their business.

Alternative Lenders 

Our partners at SmallBusinessLoans are a popular option for Texas small businesses. Alternative lenders typically have a streamlined application process, faster approval times, and are quick to fund. Alternative lenders generally have easier-to-meet qualifications, which give more businesses the opportunity to receive financing. Many businesses who need capital need it quickly, which is why they rely on alternative lenders to help them secure capital for their business in as little as 24 hours upon approval¹.

Texas Small Business Grants 

There are some small business grants available in Texas to provide mentorship and support to small business owners. Community Development Financial Institutions (CDFIs) are nonprofit lenders that offer favorable terms like low interest rates, mentorship, and support. These institutions typically focus on supporting disadvantaged or minority-owned businesses. Alternatively, the Texas Workforce Commission offers Texas small businesses with fewer than 100 employees funds to support the hiring and training of new employees.

Understanding the process of securing a loan for your business seems less overwhelming once you understand the basic requirements. Working with a trusted, reliable lender makes it even more manageable. Our partners typically require:

• At least six months in business
• Minimum $250,000 in annual gross sales (or $21,000/month)
• Fair to excellent credit

No matter your industry or small business goals, securing financing for your business can be a smooth and streamlined process in Texas. Our lending partners make it simple for small business owners like you to receive critical funds to support their businesses in a timely manner. The process can move even quicker if you already know what to expect and have your required paperwork ready to go.

• Determine the financial needs and goals of your business and if you meet the minimum qualifications. Most alternative lenders we partner with require a business to be in operation for at least six months and a minimum of $250,000 in annual sales.
• An alternative lender application is often fast and simple. You’ll typically need to provide bank statements and both personal and business credit scores.
• Then the lender will review your application, credit history, and any other qualifications. SmallBusinessLoans pairs you with lenders who quickly review and respond to applications.
• Your lender then determines the loan amount, interest rate, and repayment terms. If you accept the terms, the funds are then transferred to your business – often in as little as 24 hours¹.
• Lastly, you’ll repay the loan according to the agreement between you and the lender.

With all the opportunities in Texas, running a small business can still be challenging. Competitive markets and rising costs make it essential for small businesses to have fast and accessible financing options. At SmallBusinessLoans, we quickly match you with one of our trusted partners who can provide up to $500,000¹ in financing to support your business goals. The entire process is simple and quick so you can secure funding you need without any hassle.