Top 5 Texas Small Business Loan Options
Next, we will look at the top five Texas small business loan options available to local entrepreneurs.
1. Business and Community Lenders of Texas
Business and Community Lenders (BCL) of Texas are also referred to as a non-profit organization based in Texas. Their goal is to provide lending, homeownership, entrepreneurship and community development assistance across the state of Texas.
BCL offers many different types of loan programs, making it easy for you to identify which option will work for your small business and its needs. Here are some of the loan programs BCL offers:
- New Business Lending: this option is for you if your business is new and hasn’t been running for more than two years. The amount available is between $20,000 and $50,000. This loan can be used to purchase equipment, inventory and other business essentials.
- Small and Diverse Growth Funds: this option is available to women and business owners from minority groups. If you fall into this category, you can apply for a micro-loan of up to $50,000.
- Business Growth Fund: this option is for you if your small business is older than two years. You can apply for an amount between $50,000 and $300,000 with this option.
- Rural Business Lending: for this option, BCL partnered with the US Department of Agriculture to provide loans up to $250,000 to small businesses located in rural towns (towns with a population under 50,000) across Texas.
- SBA Loans: for this option, BCL partnered with the US Small Business Administration to provide 504 loans to assist entrepreneurs in acquiring equipment or real estate.
2. Texas Capital Bank Small Business Loans
Texas Capital Bank has branches in all the major cities across Texas. This makes them a very convenient bank to apply for small business loans. You can also apply for a much more considerable amount of capital with Texas Capital Bank with an amount of up to $750,000.
This bank also offers SBA (Small Business Administration) loans and term loans, lines of credit, trade finance for import and export business, and equipment financing. They also offer financing to companies in hard to fund industries such as real estate, brokering, gas and oil. Texas Capital Bank also offers asset-based funding, meaning that your loan is collateralized by the businesses inventory, accounts receivable, and equipment.
However, this is a bank, and as such, their credit and qualification requirements are stricter than loans from a non-profit organization.
This is a non-profit organization that aims to provide support to small businesses in underserved communities. This includes small businesses launched by women, people of color, veterans or companies located in low-income areas.
A few other benefits of PeopleFund are:
- Lower down payments
- No prepayment penalties
- Flexible collateral and underwriting requirements
- Group and one-on-one business training
PeopleFund also participates in Small Business Administration programs. They can also offer loans up to $350,000, with a maximum of seven years to pay back the loan. Their interest rates are between 7% - 15%, with discounts for business owners from underserved communities.
4. Texas Trust Credit Union
Credit Union business loans are often overlooked as you need to be a member of the credit union to apply for a loan. However, loans through credit unions often provide a more competitive interest rate and a more flexible underwriting process.
If your company is in Denton, Dallas, Henderson, Ellis, Tom Green county, Tarrant, or Johnson, you can become a Texas Trust Credit Union member.
The Texas Trust Credit Union provides term loans, SBA loans, lines of credit, construction financing and even real estate loans. This is very beneficial for property and real estate developers. You also have the option of applying for a cash-back business credit card through Texas Trust Credit Union to support you with ongoing purchases.
5. Business Investment Growth Austin Microloans
This Texas small business loan provider, known as BiG Austin, is a microlender that provides small business loans to a few different Texas communities. Your company needs to be in one of the following counties to apply for a loan with BiG Austin: Burnet, Blanco, Bell, Bastrop, Hays, Gillespie, Lee, Llano, Lampasas, San Saba, Milam, McCulloch, Mason, Williamson, or Travis.
Small businesses with at least three months of trading history can apply for up to $15,000. Businesses with at least one year of operating history can apply for up to $50,000. The repayment terms with BiG Austin spans between one to six years.
However, for new businesses, Big Austin requires that the owner has a second income source such as spousal income, retirement income or a second job.
See below a summary of the above information.
Summary of Top 5 Texas Small Business Loan Provider
Maximum Loan Amount
Business and Community Lenders of Texas
5.5% - 9.75%
Texas Capital Bank Small Business Loans
5.5% - 9.75%
Texas Trust Credit Union
5.5% - 9.75%
Business Investment Growth Austin Microloans
5.5% - 9.75%