Best Business Loans in Texas

Best Texas small-business loans from nonprofit lenders

There are several community development financial institutions (CDFIs) that offer loans and resources to Texas businesses. CDFI lenders can be credit unions or nonprofit organizations that target underserved communities. These lenders may be a good option for businesses that are just starting out, those that are having trouble qualifying with traditional lenders or business owners who want extra support.

Key facts:

• LiftFund’s Heroes Program offers small-business loans up to $100,000 at a fixed rate of 5% for veterans, their spouses and spouses of active duty members. 

• Loans available for commercial real estate, equipment, vehicles, inventory, working capital and more. 

• 0% interest loan programs in Laredo, San Antonio and Corpus Christi. 

» MORE: Best business loans for veterans

Key facts:

• Startup funding, microloans, rural business funding and SBA loans available. 

• Loans come with free access to BCL’s business coaching. 

• Depending on the loan type, loan amounts between $5,000 and $300,000.

» MORE: Best small-business CDFI loans

Key facts:

• BIPOC Small Business Accelerator Program offers business planning support and coaching, a business grant of $3,000 to $5,000 and a PeopleFund loan upon completion of a six-month curriculum. 

• Flash funds program offers a streamlined application process for loans up to $25,000. 

• Transparent website and loan requirements.

» MORE: Best minority small-business loans

Key facts:

• Loans offered to businesses in Texas counties: Bastrop, Bell, Blanco, Burnet, Gillespie, Hays, Lampasas, Lee, Llano, Mason, McCulloch, Milam, San Saba, Travis or Williamson.

• All loans require collateral. 

• Startups with at least three months of operating history can access funding up to $15,000; businesses with at least a year of operating history qualify for loan amounts up to $35,000

Best Texas business loans from local banks

Local and community banks in Texas may combine the favorable rates and terms of big bank options with the smaller, hands-on feel of a nonprofit lender. Some local banks also offer specialized knowledge in common Texas industries, like speculative real estate, energy or natural gas.

Key facts:

• Offer SBA loans, term loans, commercial real estate loans and more. 

• Commercial real estate loans include owner-occupied and investment properties.

Key facts:

• Lending professionals specialized in industries such as energy, nonprofit and government, transportation and more. 

• Asset-based financing offered.

Best Texas business loans from online lenders

Beyond Texas-based providers, there are several nationwide lenders that lend to businesses in Texas. Online lenders are typically more expensive than banks and nonprofit lenders, but they are a good option if you need capital fast or if you’ve been rejected by other lenders.

Key facts:

• Loans up to $1.5 million. 

• Borrowing costs can be high. 

• Prepayment discounts.

Key facts:

• Lines of credit up to $150,000. 

• Repayment terms of 12 or 24 months. 

• Funding available as quickly as the next day.

Key facts:

• Terms up to seven years. 

• Fast financing compared to traditional lenders. 

• Loans between $25,000 and $500,000.

How to get a small-business loan in Texas

When you’re ready to apply for a business loan, you’ll need to have a few items ready to go in your business loan application. Documentation requirements vary significantly according to which loan you apply for, but here are a few things you should pay attention to:

1. Determine what type of loan is best for you. Understand the stage that your business is in, the amount you need to borrow and which type of financing works best for you. If you need a fast loan, for example, you may opt for an online lender. If you are building credit and want a personalized experience, you may be better off reaching out to a CDFI. 

2. Research your options. Once you have an idea of what you need, you can start researching lenders. Make sure you look for transparency around rates and terms, and keep a sharp eye for predatory lenders that guarantee approval or come with a lot of high fees. 

3. Compare rates and terms. Once you’ve narrowed down some choices, you can compare rates and terms between lenders to make the best decision for your business. Make sure you compare APRs, which incorporate interest and factor rates, and any fees associated with the loan. 

4. Gather documentation. Generally, you’ll need to provide a business plan, personal and business financial documents and business legal documents to complete your loan application. 

» MORE: How to start a business in Texas

Other resources for Texas small businesses

Financial assistance is vital for new businesses, but entrepreneurs also benefit from access to coaching, mentorship and networking with other business owners. Texas small businesses can access needed resources through the following organizations:

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer small-business friendly features, including:

• Transparency of rates and terms.

• Flexible payment options.

• Fast funding times.

• Accessible customer service.

• Reporting of payments to business credit bureaus.

• Responsible lending practices.

We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.