This is some text inside of a div block.

Texas Small Business Loans - How to Get a Small Business Loan in Texas

This is some text inside of a div block.


Texas Small Business Loans - How to Get a Small Business Loan in Texas

This is some text inside of a div block.

Can you get a loan to start a small business in Texas?

If you’re looking to start a business in the Lone Star State, you might be wondering what options you’ll have for small business loans in Texas. Things can get overwhelmingly expensive when you consider common start-up costs such as rent, insurance, web design, payroll, office furniture, advertising, and licensing. Once you’re up and running the expenses don’t fade either.  Luckily, Texan entrepreneurs do have financing options for new small businesses to help get things going or keep them afloat. While traditional business loans may be difficult to acquire as a start-up, founders may consider personal loans, collateral loans, U.S. Small Business Administration microloans, or credit cards as a source of funding. Business owners looking for the starting point should visit mySMBscore. At mySMBscore you can access valuable insights that can help you view your business through the eyes of a lender. Plus, we can even connect you with our lending partners that can offer small business loans. 

How much does it cost to start a business in Texas?

Along with common tangible start-up costs, there should be a fee of $300 just for registering your corporation. An LLC typically costs $200 per partner to register. You may also have to account for permit fees which are subject to local regulations. This might include fees for:

  • Building Permit
  • Zoning Permit
  • Tax Permit
  • Health Permit
  • Occupational Permit
  • Alarm Permit
  • Signage Permit

In addition to permits and licensing, there are plenty of other costs associated with starting a business. These costs can vary significantly depending on the venture. Connect with alike entrepreneurs and do your research to understand what costs you might knowingly or unknowingly encounter. 

How can a loan help your Texas small business?

After six months to a year in operation, your business should have its own credit score, which can make it easier to apply for a traditional small business loan in Texas. A small business loan can help your Texas business in a multitude of ways, giving you the funding you need for common business expenses such as:

  • Day to day business operations - This might include payroll, inventory, utility, rent, and marketing.
  • Expanding your business - Whether hiring additional staff or opening a new location, small business loans are frequently utilized for expansion. 
  • Invest in growth opportunities - This might include buying inventory at a discount or launching a new marketing campaign.

Whatever your business needs, a Texas small business loan can provide funding so that you can make it happen. Additionally, by repaying a small business loan on time and in full, a Texas small business can further establish a positive credit history, which can help to secure future financing. 

What amount is considered a small business loan in Texas?

When we say small business loan can consider the size of the business, as well as the size of the loan. According to the U.S. Small Business Administration a small business is defined as a firm with revenue ranging from $1 million to over $40 million with as little as 100 and up to 1,500 employees. In terms of loan size, generally any amount under $100,000 can be considered small. 

What local funding for small businesses is available in Texas?

There are various funding options available for small businesses in Texas at a local level, including: 

  • Small business loans and other financial products are offered by community banks and credit unions in the area to support small businesses in their communities.
  • Economic Development Corporations (EDCs) are nonprofit organizations that aim to promote economic development within their local communities. EDCs can provide funding or other incentives to help small businesses start or expand their operations in the area.
  • The Texas Product Development and  Small Business Incubator Fund offers loans and grants to small businesses that are engaged in product development and research in the state of Texas.
  • The Texas Capital Fund provides funding to help communities in Texas attract and grow businesses. This program offers grants, loans, and other financial incentives to support economic development initiatives within the state.

What Texas small business grants are available?

Entrepreneurs and small business owners in Texas not only have access to a plethora of small business loan options, but access to state-exclusive financial assistance in the form of grants. 

  • Texas Workforce Commission Skills for Small Business Grants: Small businesses in Texas with less than 100 employees can receive grants from the Texas Workforce Commission Skills for Small Business program to train and improve their workforce. These grants can be utilized to cover training costs for various areas and provide up to 75% of the training costs, with a maximum funding of $100,000 per year per business.
  • Texas Enterprise Fund Grant: The aim of the Texas Enterprise Fund (TEF) is to promote economic development and job creation in Texas by providing grants to businesses that are planning to expand or relocate to the state. The program is intended to encourage the growth and development of businesses in Texas.
  • Texas Department of Agriculture Grant: The TDA provides various grant programs that aid in the advancement and progress of rural areas and agriculture in Texas.

What small business loans are available in Texas?

Small business owners in Texas have a range of loan options to choose from, including SBA loans, traditional bank loans, online loans, and alternative loans such as those provided by community development financial institutions or microlenders.

MySMBscore partners with reputable online lenders such as Credibly, Fora Financial, Fundation, Kapitus, Kickfurther, On Deck and Rapid Finance to present you with loan offers that are tailored to you and your Texas based business’s financial circumstances. Plus, we can help you access insights that can empower you to apply for loans with an understanding of what you can qualify for. 

Is it hard to get approved for a small business loan in Texas?

While traditional banks or SBA loans may have more stringent requirements for approval, online lenders can typically work with lower credit scores and have overall more lenient requirements. The ease of obtaining approval for a small business loan in Texas depends on individual financial circumstances and the lender's criteria. To view your business credit score from the eyes of a lender, visit MySMBscore. 

How to get a small business loan in Texas

Before applying for your Texas small business loan, it is essential to determine your funding needs. Once you have an idea of how much funding you’re looking for, it’s time to research lenders. MySMBscore can connect you with various lenders quickly and easily, so you can choose the loan terms that work best for you. 

How to apply for a small business loan in Texas

While you may be excited to apply for a loan, there are some steps you should take prior. First, define your needs. Next, check your business credit score. Lastly, gather documentation such as tax returns, licenses, identification, business plan, and so forth. To get your business on the path to a competitive business loan, get started at mySMBscore today!

How to qualify for a small business loan in Texas

When assessing your eligibility for a small business loan in Texas, lenders can take into account both your personal and business credit scores. While online lenders generally prefer credit scores of 620 or higher, some may consider lending to borrowers with lower scores if their business finances are strong. Collateral-backed loans may also be an option for borrowers with lower credit scores. Lenders will also evaluate your business's financial health, including revenue, cash flow, and other metrics, to determine your ability to repay the loan. Some lenders may have additional requirements such as time in business and industry type. 

What other resources are available for Texas small businesses?

In addition to financing, Texas entrepreneurs can benefit from local resources such as:

  • Local Texas SCORE Chapter: Texas SCORE chapters are nonprofit organizations that offer free business education and mentoring services to entrepreneurs and small business owners in Texas. Experienced business professionals volunteer their time to provide one-on-one mentoring, workshops, and online resources to help small businesses start, grow, and succeed.
  • Local Texas Chamber of Commerce. Texas Chambers of Commerce promotes and advocates for businesses in their communities. They provide resources such as networking events, training programs, and access to government officials. Additionally, they advocate for policies that support economic development and business growth.
  • Local Texas Small Business Development Center. Local Texas Small Business Development Centers (SBDCs) provide free or low-cost consulting and training services to small business owners and entrepreneurs in Texas. SBDCs are funded by the federal government, state government, and local partners, and staffed by business professionals who provide guidance on topics such as business planning, marketing, financing, and operations.

Where can you get a small business loan in Texas? 

MySMBscore can connect you with various lenders specializing in small business loans in Texas. Additionally, utilizing MySMBscore can help you qualify for a small business loan in Texas by providing valuable information regarding your business credit data. By accessing your SMB credit score, understanding its components, and knowing what lenders prioritize, you can improve your financial position and increase your chances of approval. Beyond the internet, local banks and credit unions can offer business loans and there are plenty of alternative funding options. Hence why we encourage business owners to understand their needs before diving in. This should help you gravitate toward the right option. 

Top Loans