Small Business Loans In Texas

Small Business Loans TexasTexas is the most small business-friendly state in the nation. Its regulatory regime is light, and taxes are low (business earning $10 million or less only pay a rate of 0.575%.) Texans also have a fierce sense of individualism that leads them to empathize with and cheer on entrepreneurs.

Despite this, however, most small business owners eventually get to a place where they can’t do it on their own. They need small business funding in Texas so they turn to lenders that offer small business loans in Texas.

In this guide, we will reveal the best business lenders in Texas. They are qualified by state authorities to offer business loans to Texans. They have a fast turnaround, have transparent processes, and approve loans at a higher rate than traditional financial institutions. No matter whether you are looking for small business loans in Dallas Texas or Houston, these firms have you covered.

Best 3 Lenders in Texas


#1 Straightforward Application Process
  • Great Customer Support
  • Suited for Small Businesses
  • Easy Application Process
  • Helpful Customer Service
  • 92% Application Approval Rate
  • No tax Return or Financials Required
#2 Best for Invoice Financing
  • Loan Amount: $1,000 to $100,000
  • Fully Online and Automated Funding
  • No Early Repayment Fees
  • Easy to Understand Payment Plans
  • Easy to Qualify
  • A+ BBB rating
#3 Excellent Customer Experience
  • Streamlined Application Process
  • Variety of Financing Options
  • High Approval Rates
  • Funding in 24 Hours
  • Fixed Fee Factor Rates
  • A+ Rating on BBB

Texas Small Business At A Glance

Cowboy hats aren’t the only thing that’s big in Texas. This state possesses the second-largest economy in the United States. In 2018, they had a GDP of more than $1.8 trillion. To put that number in perspective, this state has a bigger economy than South Korea or Canada. If Texas were a country, it would be the 10th largest in terms of economic output.

In Texas, agriculture, energy, defense contracting, technology, and tourism are its leading industries. In addition to being home to many energy company HQs, Dallas is also a major telecommunications hub. Thanks to its wealth of high-paying corporate jobs, its retail and professional services sector also thrive.

On the Gulf Coast, Houston is also an energy powerhouse. However, while oil & gas firms predominate, the city also has a growing renewables sector. Houston also has healthy aeronautics and biotech industries.

There is more to Texas than Dallas and Houston. San Antonio is a popular tourist destination. Austin also does well with tourists, but their booming tech sector stands out. And in countless smaller cities across the Lone Star State, agribusiness dominates.

While Texas is home to many Fortune 500 companies, small businesses are its backbone. SMEs, defined as firms with fewer than 500 employees, comprise a mind-boggling 99.8% of all Texan businesses. These businesses employ 4.7 million workers or 45.1% of all working-age Texans.

For this state to thrive, these firms must have ready access to Texas guaranteed loans. As such, it comes as no surprise that business loan broker Texas has plenty of clients.

Why Do Entrepreneurs Need Small Business Loans In Texas?

The vast majority of businesses in Texas are small. However, they face challenges that deep-pocketed corporations don’t. Small business taxes are indeed low, and income taxes are non-existent, However, this means that municipalities have to make up the revenue shortfall by imposing high property taxes. This burden is felt directly by owners, and landlords pass along this cost to tenants in the form of higher rents.

As such, it’s easy for small businesses to fall on hard times, especially when they’re in startup mode. If small companies lose revenue suddenly during a downturn, they may miss payments, which can tank their credit score. In these instances, circumstances may force them to get small business loans in Texas for bad credit. These come with higher interest, which can further stress a small firm.

However, in recent years, businesses have thrived under Texas’ small-business friendly regulations. As a firm grows explosively, it may outgrow its infrastructure quickly. This situation means they may have to get business grants in Texas to fund upgrades to their production capacity.

Whenever a Texan SME needs funds, they can count on online business lenders in Texas. These brokers are quick and reliable – invaluable qualities for small businesses that need to make payroll. Often, these firms can get an answer in less than 24 hours from business loan broker California rather than waiting weeks.

Grants & SBA Lenders Available To Texas Small Businesses

Without Texan small businesses, the state’s economy wouldn’t function. For this reason, the state government has made a variety of grants available to business owners. The boost they provide can help startups achieve the momentum needed to become sustainable, growing enterprises.

These initiatives include the following:

  • The Young Farmer Grant offers support to farmers between the ages of 18 and 45. It provides funds, matched dollar-for-dollar, to help younger owners of agribusiness in financial need. Owners of corporations and LLCs (limited liability corporations) are not permitted to apply. Cash awards of between $5,000-$20,000 are available, but applicants must document that they possess the necessary matching funds.
  • The Texas Enterprise Fund provides “deal-closing” grants to businesses considering expansion in Texas. To qualify, firms must prove they will employ an additional 75 workers in urban areas, or 25 employees in rural areas. They must also plan to pay a wage higher than the county average and provide documentation of planned capital investment.
  • The Product Development and Small Business Incubator Fund issues asset-backed loans to majority Texas-based businesses to foster the development of companies and new products. To qualify, the applicant must provide details on the proposed new product. They must also show that they have fewer than 100 employees and that 51% work in Texas-based operations. Loans range between $1 to $5 million and have terms of 15-20 years.
  • The Capital Access Program provides financing to SMEs that face barriers to small business funding Texas. In addition to documenting the barriers preventing access to capital, these firms must employ 499 employees or less to qualify. 51% of these employees must be based in Texas. Applicants can use these loans to fund working capital or to pay for infrastructure improvements. However, real estate investing is excluded from this definition.

Businesses that decide to take on a small business loan in Texas should do so through a lender approved by the SBA. The Small Business Administration backs these loans, which encourage lenders to offer more forgiving terms. They are also more readily available, thanks to the backing of the feds.

Notable business lenders in Texas that issue SBA loans include institutions like:

  • Wells Fargo
  • JP Morgan Chase Bank
  • United Midwest Savings Bank
  • Frost Bank
  • Comerica Bank


Texas doesn’t just have the second-largest economy in America – it is also well-balanced. While the price of oil has languished since 2015, the state’s other industries have, thanks to business financing Texas, propped things up. Diversification efforts led by Texas’ 2.6 million small businesses have also helped. However, to weather economic downturns and other surprises, easy access to small business loans Texas is crucial. In this vein, we hope our Texas lending reviews will aid you in finding the help you need quickly.

Nearby States

Business Loans in Georgia

Business Loans in Colorado