Best Business Loans in Texas

Loans for Texas small businesses are available from nonprofit CDFIs, local Texas banks and national online lenders.
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With 3.2 million small businesses in Texas, accounting for 99.8% of the state’s businesses and nearly 45% of all the state’s employees, there’s no shortage of business owners looking for financing in Texas

U.S. Small Business Administration. 2023 Small Business Profile - Texas.
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Here we’ll cover the best small-business loans in Texas offered from local and community banks, as well as nonprofit and online lenders.

250+ small-business products reviewed and rated by our team of experts.

95+ years of combined experience covering small business and personal finance.

50+ categories of best business loan selections.

Objective and comprehensive business loans ratings rubric. (Learn more about our star ratings.)

NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.

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.

LiftFund

Best for: Veteran small-business owners in Texas
LiftFund - Small Business Loans
LiftFund

LiftFund - Small Business Loans

Max Loan Amount 

$5,500,000

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. 

LiftFund is a large CDFI with offices in Texas and several other states. In 2023, it issued over $30 million in small-business loans across all locations. It offers Texas city-specific programs in Laredo, San Antonio, Corpus Christi and El Paso.

Qualification requirements vary based on specific loan programs; however, LiftFund says it works with small businesses with limited credit, collateral or experience.

Business and Community Lenders (BCL) of Texas

Best for: Startups and rural businesses
Business and Community Lenders (BCL) of Texas
Business and Community Lenders (BCL) of Texas

Business and Community Lenders (BCL) of Texas

Max Loan Amount 

$300,000

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.

Business and Community Lenders (BCL) of Texas is a nonprofit CDFI that provides lending, homeownership, entrepreneurship and community development assistance across the state, with offices in Austin, Dallas and San Marcos.

Eligibility requirements vary by loan type, and BCL recommends applicants start by filling out their online questionnaire.

PeopleFund

Best for: Minority small-business owners in Texas
PeopleFund
PeopleFund

PeopleFund

Min Credit 

600

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.

PeopleFund is a nonprofit lender in Texas with a focus on providing financing to underserved entrepreneur communities, including women, people of color, veterans and businesses located in low-income areas.

PeopleFund’s requirements vary by loan and program, but both the Flash Funds and BIPOC Business Accelerator Program are open to startup and existing businesses. It also offers SBA 504 loans.

Business Investment Growth Austin (BiGAustin) microloans

Best for: Businesses that need small funding amounts
Business Investment Growth Austin (BiGAustin)
Business Investment Growth Austin (BiGAustin)

Business Investment Growth Austin (BiGAustin)

Max Loan Amount 

$35,000

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

Business Investment Growth Austin (BiGAustin) is a nonprofit CDFI that offers consulting and education, as well as microloans up to $35,000 in several Texas communities. Its hands-on application process can take between two and four weeks to complete; however, it is upfront and transparent about its qualification requirements.

Among other factors, Texas businesses eligible for BiGAustin loans must operate in a qualifying county, be for-profit and be able to offer collateral. It only works with businesses that aren’t able to qualify for conventional business bank loans, and startup applicants must have a secondary source of income outside the business.

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.

Texas First Bank

Best for: SBA loans and commercial real estate purchases

Key facts:

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

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

Texas First Bank is a Texas-based community bank that’s been open since the 1960s and several physical locations around the Houston metro area. It offers business banking, a credit card and several specialized small-business loan products.

Texas First Bank’s website is not transparent about qualification requirements; however, when you request information on a loan, you are assigned a local rep to help walk you through the whole process.

Texas Capital Bank

Best for: Texas businesses with specific industry needs

Key facts:

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

  • Asset-based financing offered.

Texas Capital Bank offers SBA 504 and 7(a) loans, term loans, lines of credit, trade finance for import-export businesses and equipment financing. It even offers loans for companies in hard-to-fund industries such as oil and gas, real estate and brokering. Texas Capital Bank also provides asset-based financing. Asset-based loans are collateralized by inventory, accounts receivable or equipment and are a good option for businesses with cash flow troubles or seasonal sales cycles.This bank has branches in every major Texas city and offers up to $750,000 in business capital.

Texas Capital Bank is a traditional bank lender, meaning it has stricter credit and qualification requirements than the nonprofits we mentioned above. Generally, banks require businesses to have excellent credit and a couple years of operating history in order to qualify for financing.

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.

Fora Financial

Best for: Texas business owners with bad credit
Fora Financial - Online term loan
Fora Financial

Fora Financial - Online term loan

Max Loan Amount 

$1,500,000

Key facts:

  • Loans up to $1.5 million. 

  • Borrowing costs can be high. 

  • Prepayment discounts.

Fora Financial is an online lender that offers up to $1.5 million in financing. Like most online lenders, it offers more lenient requirements than traditional lenders; however, interest rates can be high and terms are short.

Fora Financial has some of the most flexible qualifications among online lenders, requiring just 6 months in business and a 570 personal credit score.

Fundbox

Best for: Lines of credit for startups
Fundbox - Line of credit
Fundbox

Fundbox - Line of credit

Max Loan Amount 

$150,000

Key facts:

  • Lines of credit up to $150,000. 

  • Repayment terms of 12 or 24 months. 

  • Funding available as quickly as the next day.

Fundbox is an online financial company that provides flexible, short-term lines of credit for small businesses. With its streamlined online application process you may be approved in as little as three minutes, with access to funding as early as the following day.

Fundbox requires a minimum of just 6 months in business to qualify, and a 600 minimum credit score, which is significantly lower than most banks. You will need at least $100,000 in annual revenue to qualify.

Funding Circle

Best for: Long-term business purchases
Funding Circle - Online term loan
Funding Circle

Funding Circle - Online term loan

Max Loan Amount 

$500,000

Key facts:

  • Terms up to seven years. 

  • Fast financing compared to traditional lenders. 

  • Loans between $25,000 and $500,000.

Funding Circle is an online lender that more closely mimics the rates and requirements of a traditional lender; however, its process can be much faster. It offers rates starting at 15.22% with terms up to 84 months. Approval decisions can come within 24 hours, and you may get funded in one business day.

To qualify for a loan with Funding Circle, you’ll need at least 24 months in business and a credit score of 660 or higher. There are no minimum annual revenue requirements. 

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. 

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:

  • Local Texas Chamber of Commerce. Every major city in Texas has a local chamber of commerce. These chambers often hold networking events, conferences and training workshops for local businesses. Some chambers of commerce also have connections with local universities which you can utilize for your hiring efforts.

  • Local Texas SCORE chapter. The Service Corps of Retired Executives (SCORE) helps small businesses get off the ground through education and mentorship. SCORE will match you to a business mentor in your industry who is located near you. These mentors can help you form a business plan, connect you with accounting or legal help, assist with supply chain management and much more. 

  • Local Texas Small-Business Development Center. Another great resource is your local Small-Business Development Center (SBDC). SBDCs provide free, one-on-one business consulting services with industry experts that can help you make better business decisions. In-person and online seminars are also available for an additional cost.

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.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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