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.
| Lender | Best for… | Max. loan amount | Term length | Min. interest rate | Time in business |
|---|---|---|---|---|---|
 | Startups | $50,000 | Not disclosed | Not disclosed | Less than 24 months |
 | Fast funding | $25,000 | Up to 84 months | 7.00% to 15.00% | Less than 24 months |
 | Nonprofit financing | $5,000,000 | Up to 60 months | Prime + 2% | 24 months |
 | Microloans | $35,000 | 12 to 72 months | Not disclosed | 3 months |
 | Minority entrepreneurs | $500,000 | 5 to 120 months | 9.90% | Not disclosed |
 | Low-interest loans | Not disclosed | Not disclosed | Not disclosed | 24 months |
 | Online term loans | $500,000 | 6 to 84 months | 15.22% | 24 months |
 | SBA loans | $5,000,000 | 120 to 300 months | Base + 3.00% | 24 months |
 | Nationwide banking | $5,000,000 | 12 to 180 months | 6.25% | 6 months |
Learn more about how we chose our picks.
Here are some business lenders that operate throughout the entire Lone Star State.
| Loan amounts | $20,000 to $50,000 |
| Starting interest rate | Not disclosed |
| Term length | Not disclosed |
| Minimum credit score | Not disclosed |
| Minimum time in business | Less than 24 months |
| Pros | Cons |
|---|---|
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 |
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.
| Loan amounts | Up to $25,000 |
| Starting interest rate | 7.00% to 15.00% |
| Term length | Up to 84 months |
| Minimum credit score | 600 |
| Minimum time in business | Less than 24 months |
| Pros | Cons |
|---|---|
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 |
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.
| Loan amounts | Up to $5,000,000 |
| Starting interest rate | Prime + 2% |
| Term length | Up to 60 months |
| Minimum credit score | 640 |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
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 |
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.
Some lenders focus on serving Texas businesses in specific metro areas. Here are some small business lenders who may be local to your area:
| Loan amounts | Up to $35,000 |
| Starting interest rate | Not disclosed |
| Term length | 12 to 72 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Three months |
| Pros | Cons |
|---|---|
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 |
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.
| Loan amounts | $500 to $500,000 |
| Starting interest rate | 9.90% |
| Term length | 5 to 120 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
| Pros | Cons |
|---|---|
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 |
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.
| Loan amounts | Not disclosed |
| Starting interest rate | Not disclosed |
| Term length | Not disclosed |
| Minimum credit score | Not disclosed |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
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 |
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.
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:
| Loan amounts | $5,000 to $500,000 |
| Starting interest rate | 15.22% |
| Term length | 6 to 84 months |
| Minimum credit score | 660 |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
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 |
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.
| Loan amounts | Up to $5,000,000 |
| Starting interest rate | Base + 3.00% |
| Term length | 120 to 300 months |
| Minimum credit score | 680 (recommended) |
| Minimum time in business | 24 months (recommended) |
| Pros | Cons |
|---|---|
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 |
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.
| Loan amounts | Starting at:
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| Starting interest rate |
|
| Term length | 12 to 180 months |
| Minimum credit score | 670 for unsecured loan products |
| Minimum time in business |
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| Pros | Cons |
|---|---|
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.
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.
