How To Get Small Business and Startup Loans in Texas

Small Business Loan Request Letter How To Get Small Business and Startup Loans in Texas

Learn Where To Look for Small Business or Startup Loans in Texas

If you realize that you need financial assistance to cover the costs and grow your business, you might first turn to your family and friends. While this might be the best option—as you could avoid unfavorable interest rates and loan terms—it could destroy your relationships.

To avoid this risk, you should explore small business and startup loans in Texas. This article presents some available options that could help you deal with business expenses and implement your planned projects.

Small Business Loans in Texas

Whether you need funds to start or scale your existing business in Texas, you can turn to different institutions that provide grants and loans.

The following list presents some lenders you could take into account when searching for the loan that best suits your needs:

  1. Texas Capital Bank
  2. Texas Trust Credit Union
  3. PeopleFund Small Business Loans
  4. Business and Community Lenders

Small Business Loans at Texas Capital Bank

Texas Capital Bank could be the right choice if you require a larger amount of money. This bank:

Texas Capital Bank also provides financing to businesses in difficult-to-fund areas, including oil and gas, real estate, and brokerage.

Keep in mind that—since this is a bank—they have strict qualification requirements and ask for good credit and business history.

Texas Trust Credit Union

Credit unions typically provide affordable loans for startups and small businesses that—compared to banks—come with more:

  • Favorable interest rates
  • Flexible application processes

To get a loan from Texas Trust Credit Union, you must become a member and reside or have a business located in one of the following counties:

  • Ellis
  • Dallas
  • Denton
  • Tarrant
  • Johnson
  • Henderson
  • Tom Green

This credit union provides the following types of loans:

Texas Trust Credit Union might be suitable for you if you are a property investor and developer since you:

  1. Can get up to 80% of the new construction costs
  2. Make interest-only payments during the building period

Aside from favorable loan terms, this credit union also offers cash-back business credit cards you can use to supplement your capital and credit score.

PeopleFund Texas Small Business Loans

PeopleFund is a nonprofit lender that provides financial assistance to the following groups and under these conditions:

Eligible Business Owners SMB Loan Terms Loan Types
This lender caters to a variety of businesses, including:

  • Startups
  • Small businesses
  • Nonprofit organizations

PeopleFund puts focus on underserved entrepreneurial communities, e.g.:

  • Women
  • Veterans
  • People of color
  • Companies doing business in low-income Texas areas
  • Low down payments
  • No prepayment penalties
  • Flexible application procedures
  • Lenient collateral requirements
Some of the available loans include:

Business and Community Lenders

Business and Community Lenders (BCL) is another nonprofit organization that offers small business and startup loans in Texas.

These loans could be suitable for you if you:

  1. Have had a company for less than two years—While startups can get BCL financial assistance—which can be a problem with other lenders—more seasoned businesses can also apply for these loans
  2. Need business coaching—You can get free business training throughout the loan repayment time, which could be beneficial if you have recently started a business and need guidance

The following table outlines some BCL loan options:

Types of Loans Specifics
New business loans
  • Eligibility—Businesses younger than two years
  • Loan amount—From $20,000 to $50,000
  • Purpose of a loan—Purchase of business basics, such as:
    • Equipment
    • Real estate
    • Inventory
Business growth
  • Eligibility—Businesses operating longer than two years
  • Loan amount—From $50,000 to $300,000
Small and diverse growth
Rural business
  • Eligibility—Companies in Texas rural communities with a population of up to 50,000
  • Loan amount—Up to $250,000

Aside from the above-listed loans, BCL also provides SBA 504 loans you can use to purchase real estate or equipment for your business.

How To Get a Small Business Loan in Texas

Once you understand how business loans function and what types of loans and lenders are available in the Lone Star State, you should be ready to apply for the required funds.

Before approaching the preferred lender, you should prepare the following:

  • Business plan—You should draw up a business plan to explain to lenders your products or services, commercial opportunities, target market, competition, and financial forecast. The plan will enable loan providers to:
    • Assess your business growth potential
    • Determine the amount of money you qualify for
  • Budget—You need to create a precise budget to:
    • Have a clear understanding of expected operating costs and income
    • Keep track of your business results and performance
  • Documentation—Since documentation depends on the loan or lender you apply for, you need to study the requirements carefully to know what documents to gather. Keep in mind that your application can be rejected if you fail to provide the necessary paperwork
  • Loan request letter—To increase your chances of success, you should draft a convincing request letter to enclose with your loan application

Sign up for DoNotPay to get a:

  1. List of lenders most suitable for your business requirements
  2. Compelling loan request letter addressing the specific terms and conditions of the selected type of loan and financial institution

DoNotPay Assists With Small Business and Startup Loan Applications

We understand how challenging and lengthy the search for appropriate financial assistance can be. That is why we have designed two AI-powered products—Find Online Business Loan Lender and Business Loan Request Letter.

Subscribe to DoNotPay and take these steps:

  1. Open the Business Loan Request Letter product
  2. Provide details about your business and loan requirements
  3. Enter the amount you need to borrow
  4. Specify if you would like us to compile a list of the best loan providers for your case
  5. Upload the required documents

When you are done, you will get a custom-made loan request letter that will impress the lenders and help you get the funding you need.

Get the Upper Hand With DoNotPay

The business world is extremely competitive—that is why it is always good to have some extra capital set aside when you need to invest in your company. You can leave the bureaucratic task to us—DoNotPay will draw up business loan request letters in your stead.

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Whatever the task at hand, our AI-powered app will see it through successfully.

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