How to Get a Small Business Loan in Texas

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A lack of funding or working capital is one of the main reasons why startups fail. Even if you don't have employees, you still need money to keep your business running and cover ongoing expenses. One option is to apply for business loans, grants and other types of financial aid. Texas small business loans, for instance, are offered by both private and governmental organizations — you just need to know where to look for them.

TL;DR (Too Long; Didn't Read)

Several government agencies and private organizations offer loans for small businesses in Texas. Depending on your needs, you may apply for a loan through the Small Business Administration, contact local banks or reach out to nonprofit lenders like PeopleFund and LiftFund.

Contact the Small Business Administration

The Small Business Administration doesn't offer loans or other financing options. Instead, it connects business owners and entrepreneurs with its partnering lenders, making it easier for them to access capital. The loans available through this program have competitive rates and flexible terms and may include continued support to help you grow your business. Some don't even require collateral.

If you're interested in this option, access SBA.gov, click Funding Programs and select Lender Match. Fill out an online form with relevant information about your business and wait to hear back from potential lenders within two days. Next, discuss your financing options with each lender, choose one and submit your application.

Depending on the lender, you may need to present your business plan and financial projections, state how you plan to use the funds and answer a few questions about your industry experience. Applicants with good credit scores and a sound business plan are more likely to get their application approved. However, some lenders may offer startup funding even to those with less-than-stellar credit.

Reach Out to PeopleFund

Another option is to contact PeopleFund, a nonprofit organization that provides Texas small business loans for startups, nonprofits and entrepreneurs. Minorities, women, veterans and businesses located in low-income areas have priority. Applicants who qualify for a loan also receive one-on-one training and business counseling.

The loans from PeopleFund have flexible requirements and low down payments. Additionally, there are no prepayment penalties, so if you pay off your debt quicker, your rates won't increase like what happens with traditional loans. Business owners can also sign up for free workshops and online classes that cover basic accounting and finance, marketing, legal matters and social media best practices.

Apply Through LiftFund

LiftFund is a nonprofit lender that appeals to small businesses across 13 states, including Texas, Oklahoma, Alabama, Florida and others. The organization prioritizes startups, women, minorities and small companies with limited capital. It offers Texas small business loans, microloans and SBA 504 loans as well as financial training.

Entrepreneurs and business owners can obtain anywhere between $500 and $1 million. The funds can be used for starting a business, buying equipment or investing in real estate.

LiftFund also offers loans for lease improvements, restaurants, working capital, commercial vehicles and more. Its team provides a wide range of services, from financial and business planning to credit report reviews, roundtable sessions, individual counseling and small business support.

Contact the BCL of Texas

Whether you want to start a business or grow your company, reach out to the BCL of Texas. Established in 1990, the organization offers loans of $20,000 to $50,000 for small businesses and higher amounts for growing businesses. You may also apply for the SBA 504 Loan Program, which appeals to those who intend to build or purchase commercial buildings or remodel commercial properties.

Except for SBA 504 loans, the funds can be used for nearly any business purpose, including real estate purchases, lease improvements, working capital lines of credit and more. Startups and small businesses receive free business coaching for the life of the loan. The BCL of Texas also provides individual and group assistance to micro-enterprises with a limited income.

There are plenty of options when it comes to Texas small business loans. Depending on your industry and business needs, you may also obtain financing from the Texas Product/Business Fund, the Bank of Texas, BiGAUSTIN, GUD Capital and other institutions. Check the eligibility requirements, discuss your options with a financial adviser and read the fine print before submitting your application.

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About the Author

Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.

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  • a lot of franklins image by Nikolay Okhitin from Fotolia.com