Texas Small Business Loans: Compare Your Options

Compare Texas business loans for a startup, equipment or working capital. Find nonprofit lenders, state-supported programs and commercial financing.

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Find your starting point

Use the lender table to identify a Texas startup route, and ask for that lender’s checklist before preparing the full file.

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Stage 1: Not open yet, or no sales yet

With no sales to show, a lender looks at you: your credit, your savings and your plan. The SBA says loan eligibility for a new business is typically based on the owner’s personal credit score. Before you apply anywhere, write down what you will sell, what it costs to open, and what you expect to bring in each month. A Texas SBDC advisor can go over that with you for free (see free help below).

An SBA 7(a) loan is possible before you open. The SBA lists starting a business as an allowed use, and in fiscal 2025, 1,187 Texas 7(a) loans went to businesses that had not opened yet (see Texas SBA numbers). A bank or other SBA lender makes the decision.

SBA microlenders that serve Texas

The Texas entries below provide several starting points for a small loan. Use the lender’s own startup instructions alongside the SBA microlender directory.

Confirm service area and startup eligibility with the selected lender before applying.

Texas community lenders (CDFIs)

CDFIs are lenders certified by the U.S. Treasury to serve communities and borrowers that banks often miss. The CDFI Fund’s list dated September 17, 2026 shows 52 certified CDFIs with a Texas address: 25 loan funds, 15 credit unions and 12 banks or bank holding companies. Loan funds on that list include BCL of Texas (Austin), Borderplex Community Capital (El Paso), Greater Texas Capital Community Finance (Tyler), Houston Business Development (Houston) and Rio Grande Valley Multibank (Brownsville). Some CDFIs based in other states also lend here. You can search by ZIP code with the Minneapolis Fed’s CDFI finder.

Other options at this stage, explained on our loan types page: equipment financing for a specific truck, van or machine, and a business credit card for small, regular costs.

Stage 2: Open less than 6 months

A few months of deposits in a business bank account helps, but many faster loans still want 6 months of statements. For now, the microlenders and CDFIs above are still a good fit, and a few months of sales can make your application stronger. A business credit card or equipment financing can cover smaller, specific needs.

Compare Texas proposals for the same job

• Ask LiftFund, PeopleFund or AltCap which startup checklist fits your business before submitting documents.
• For TSBCI, the participating bank or community lender handles your loan request; confirm which program it would use.
• Put the net proceeds, full repayment amount and payment frequency beside each commercial offer.

Stage 3: Compare finance for a Texas business with revenue

Use recent bank statements to compare lines of credit, working-capital finance and SBA-backed loans. Six months of sales is only one possible eligibility condition. Check repayment costs against your actual deposits.

In Texas, also ask your bank or CDFI whether your loan can be enrolled in the Texas Small Business Credit Initiative. It does not lend to you directly, but it can make a lender more willing to say yes.

Texas state programs, and who they are really for

The Texas programs we found do not lend to you directly. They work through banks, CDFIs or colleges, or they are meant for much larger companies. Here is what each one does and who it fits.

Texas Small Business Credit Initiative (TSBCI)

• What it is: A program run by the Office of the Governor with federal funds from the U.S. Treasury. It backs loans that participating banks and CDFIs make. Its Capital Access Program covers loans of $5,000 to $5 million. Its Loan Guarantee Program guarantees up to 80% of the unpaid principal on loans of $5,000 to $20 million. A Loan Participation Program can buy up to half of a loan and also lends to CDFIs at 1%.
• Who qualifies: A for-profit business based in Texas with fewer than 500 employees and at least 51% of its employees in Texas.
• How to use it: You apply at a participating lender, not at a state office. The state’s list dated August 21, 2026 includes banks such as Amarillo National Bank, Texas Capital Bank and Live Oak Bank, and CDFIs such as LiftFund, PeopleFund, BCL of Texas and AltCap. See the full participating lender list (PDF).

Skills for Small Business (Texas Workforce Commission)

• What it is: Not a loan. The Texas Workforce Commission pays a local public community or technical college for training courses for your employees. It covers up to $2,000 for a new employee and up to $1,000 for an employee with you 12 months or more, per 12-month period. The money goes to the college, not to you.
• Who qualifies: Texas businesses with fewer than 100 employees. Training is for full-time W-2 employees paid at least the local prevailing wage. Owners and managers may qualify, depending on their duties.
• Good to know: TWC’s FAQ says the program has no end date and you can apply at any time, but training cannot be paid for after the fact. Apply before the class starts.

After a disaster: Texas Micro-Business Disaster Recovery Loan Program

This state program gives zero-interest money to CDFIs so they can lend to micro-businesses hit by a declared disaster. The borrower pays interest to the CDFI. A micro-business here means a Texas for-profit with no more than 20 employees and at least 95% of them in Texas. Franchises and national chains are not eligible. The state’s page listed funding “through August 31, 2026”, so ask a CDFI whether it is still open before counting on it.

Programs you will see named that are not for small startups

• Texas Enterprise Fund: cash grants for companies choosing between Texas and another state for a big project. It requires more than 75 new full-time jobs in urban areas or 25 in rural areas, and a well-established company.

SBA loans and offices in Texas

SBA loans are made by banks and other lenders, and the SBA guarantees part of each loan. Texas has six SBA district offices. Their advice is free, and they can point you to lenders and partner groups near you.

How many SBA loans Texas businesses get

We counted SBA’s own loan records (7(a) and 504 FOIA data, updated through June 30, 2026) for the federal fiscal year 2025, which ran from October 1, 2024 to September 30, 2025. We left out loans that were later cancelled.

• 5,123 SBA 7(a) loans went to Texas businesses, worth about $3.49 billion. Only California had more.
• The median loan was $280,000, so half were smaller. 1,985 were $150,000 or less, and 692 were $50,000 or less.
• 1,187 loans (23%) were for a business that had not opened yet. Half of those were $350,000 or more. Another 730 went to businesses 2 years old or younger.
• For loans of $150,000 or less, The Huntington National Bank (218 loans) and BayFirst National Bank (174) made the most in Texas. That is a count, not a recommendation.
• 338 SBA 504 loans for buildings and long-life equipment were made in Texas. Capital Certified Development Corporation handled 135 of them and LiftFund 51.

To reach SBA lenders, use the SBA’s free Lender Match tool. For how 7(a) and 504 loans work, see SBA 7(a) and SBA 504 on our loan types page. State-by-state comparisons are on our SBA loan statistics page.

Free help in Texas before you apply

Small Business Development Centers (SBDCs) give free, private one-on-one advice on business plans and financing. The Texas SBDC network says it has more than 40 centers, with lead offices in Houston, Dallas, San Antonio and Lubbock:

• University of Houston Texas Gulf Coast SBDC Network: 14 locations serving 32 counties in Southeast Texas.
• North Texas SBDC Network, funded in part through Dallas College.
• Texas South-West SBDC Network, hosted by UTSA: 79 counties of south, central and west Texas, including Austin.
• The network led from Lubbock. Find your nearest center through the Texas SBDC directory.

Many of the microlenders and CDFIs above also offer free coaching to borrowers.

Get your loan paperwork ready

Prepare for the lender you choose

LiftFund, PeopleFund and AltCap describe different startup application routes in the table above. Request the checklist for the lender you choose and explain whether your business has begun trading. Our loan application preparation guide covers the general financial records.

Texas records to keep current

Lenders may also check that your business is registered and current with the state:

• Your formation papers. An LLC is formed by filing a Certificate of Formation (Form 205) with the Texas Secretary of State. The filing fee is $300. Our Texas LLC guide walks through it.
• A current franchise tax account. The Texas Comptroller distinguishes tax reports from information reports. Businesses at or below the no-tax-due threshold generally do not file a No Tax Due Report for report years 2024 onward, but must file the applicable Public Information or Ownership Information Report. Check current reporting requirements for your entity.
• A sales tax permit, if you sell taxable goods or services. The Comptroller says to apply if you sell or lease goods or sell taxable services in Texas, and to allow 2 to 3 weeks to get the permit.
• Licenses for your trade. Some work needs a state license first. See our Texas guides for food trucks, daycares, HVAC, plumbing, electrical, landscaping, cleaning and salons.

Optional business credit record

Common questions

Do I need a D-U-N-S Number before applying for a Texas business loan?

It is not a universal prerequisite for a business loan. Follow the selected lender’s document checklist. A D-U-N-S Number is free; optional paid monitoring is a separate purchase and does not establish eligibility or approval.

Does Texas give loans directly to new small businesses?

The main state loan program we found, the Texas Small Business Credit Initiative, works through participating banks and CDFIs, so you apply at the lender. For a small first loan, start with an SBA microlender such as LiftFund or PeopleFund, or a Texas CDFI.

Can a Texas business that has not opened yet get an SBA loan?

Yes, it happens. In federal fiscal year 2025, 1,187 SBA 7(a) loans in Texas, about 23%, were marked as funding a business that had not opened yet. Each lender sets its own bar. The SBA says a new business is typically judged on the owner’s personal credit score.

Where is the SBA office for my part of Texas?

Texas has six SBA district offices: Dallas / Fort Worth (in Euless), Houston, San Antonio, West Texas (in Lubbock), Lower Rio Grande Valley (in Harlingen) and El Paso. Each office’s page on SBA.gov lists the counties it serves.

Are there Texas grants to start a business?

Rarely. The SBA says it does not give grants to start or expand a business, and the Texas Enterprise Fund is for large projects that create more than 25 new jobs in rural areas or more than 75 in urban areas. Texas does offer training help through the Texas Workforce Commission’s Skills for Small Business program, which pays a college for employee courses.

New to loans? Our business loan types guide explains how each kind of loan works. If you already know what the money is for, like a truck, payroll or a second location, our small business funding guide helps you work out how much you need.

Where to go next on this site

Reviewed October 4, 2026 · Sources: SBA, Texas Office of the Governor, Texas Workforce Commission, Texas Comptroller, Texas Secretary of State, U.S. Treasury CDFI Fund and lender websites. General information, not financial advice. Program rules, lender lists and minimums change, so confirm current terms with the program or lender before you apply. StartBusinessByState.com does not make loans or credit decisions.