Texas small business lenders provide the capital companies need to thrive and expand.
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Biglaw Investor connects you with small business lenders who can help you expand your business, whether through working capital or via acquisition. A small business loan loan is a great way to grow your business—but it can be hard to know where to start. Our small business lenders offer an experience specially tailored to your goals.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your business needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
There’s no doubt The Lone Star State is one of the most impressive in the country, both in size and culture. The state, located in the South Central portion of the country, is expansive, making up over 268,000 square miles. It is also home to over 29 million people, making it the second largest state by land size and the second largest in population. Texas sits on the Gulf of Mexico, but due to its size, it has a wide range of geographical features ranging from open fields to dense forests. There’s also about 10 percent of the area that’s mostly desert. Texas is a thriving, strong economic state with much to offer, not just the people that call it home but also the many businesses present here.
When it comes to the economic sectors present here, there are numerous that have helped to grow this state, including strong energy, agricultural, aerospace, and biomedical sectors. It is recognized as a state that has a very high export revenue and the second largest gross state product. While it is a huge state for large industry, it also is home to 3.1 million people, according to the U.S. Small Business Administration. These small businesses offer 4.9 million jobs for residents here, with a payroll of $233,329,255. There are many households in the state that are dependent on those funds, and these jobs make up a large portion of the state’s workforce.
For companies like this in Texas, having access to affordable funding is critical and readily available. Numerous small business lenders exist in Texas, many of them offering competitive interest rates and flexible loan terms. The U.S. Small Business Administration’s data shows that there are 10,577 active small business loans in Texas as of the most recent three years of data. These loans have a total value of $9,748,056,074. The average loan size in Texas is much larger than in other states at $921,628. Borrowers can use these funds for many things ranging from the purchase of equipment to expansion.
A small business loan is a type of funding tool used by smaller companies to help with expansion and other needs. This is a typical loan structure in which the borrower requests funds, the lender agrees to terms, and then the borrower repays the amount borrowed along with interest payments. Yet, there are many factors that help to make these loans not just accessible but also unique from other types of loans. As a small company, your business may qualify for these loans for many needs.
There are a wide range of types of small business loans available. One of the most common is SBA-guaranteed loans. These loans typically have lower fees and interest rates that are comparable to non-guaranteed loans. They also come with support to help companies run their business, lower down payment requirements, and often have flexible overhead requirements.
This is not the only option for small business loans in Texas, though. There are many banks and credit unions that offer flexible term loans as well. These may be in place for 5 to 10 years or longer, offering capital infusions for many needs. Another option is an equipment loan, which can help to purchase a computer, industrial, or other types of equipment at an inexpensive price point. Small business owners may also wish to apply for a business line of credit if they hope to borrow and repay their debt numerous times.
Small business lenders in Texas take on risk to provide these loans. The interest they charge helps to offset that. Yet, to obtain these loans, nearly all lenders will require documentation of the business, its products and services, and its overall revenue generation. These loans may be based on the amount of available revenue the company generates. Lenders may need to see balance sheets, profit and loss statements, bank statements, and other data, including the business or owner’s credit history, to determine if they can lend.
For a small business in Texas looking for a loan, there are numerous types available, including:
All borrowers should take the time to compare several loan options to find the one that is right for their needs and keeps costs as low as possible. Business lending is hard if you don’t have a track record of accounts receivable, which is why you shouldn’t start the application process until you’ve verified that you meet eligibility requirements. Your business needs should also be laid out in your business plan before you talk to any financial institutions, especially why you need the funds, such as cash flow.
Whether you’re starting up in Austin, Dallas, Houston, or somewhere else in Texas, you need some time in the market to prove that you have revenue to pay back any loan options. You can explore other options like small business grants, business credit lines, microloans, non-profit lenders (if applicable), and other business financing to see what best fits your needs.
If you’re new to running your business in the startup phase, you most likely are not able to get business loans. That’s because eligibility requirements typically include tax returns or other evidence of income from your company. Simply put, lenders want to see that you have a means of paying the loan back. There are other options beyond business loans, and you might want to see if local resources like such community development offices, economic development agencies, grants for entrepreneurs, a small business development center, the Texas Workforce Commission, or area nonprofit organizations can point you in the right direction for your new business.
Each lender has their own repayment terms, loan application, credit score rules, interest rates, and loan options. Some offer general small business loans whereas others do equipment financial, commercial real estate loans, disaster loans, or other loan options.
| Rank | Bank Name | # of Texas Loans | Avergage Interest Rate | Average Loan Size |
|---|---|---|---|---|
| 1 | Wells Fargo Bank | 241 | 7.46% | $254,206 |
| 2 | PNC Bank | 231 | 7.67% | $504,926 |
| 3 | United Midwest Savings Bank | 172 | 5.94% | $307,848 |
| 4 | Live Oak Bank | 169 | 5.35% | $1,546,075 |
| 5 | Wallis Bank | 120 | 5.00% | $1,948,892 |
| 6 | Frost Bank | 113 | 5.34% | $743,142 |
| 7 | Cadence Bank | 106 | 5.53% | $602,542 |
| 8 | Newtek Small Business Finance | 105 | 6.11% | $666,968 |
| 9 | Comerica Bank | 95 | 4.85% | $566,609 |
| 10 | First National Bank Texas | 84 | 5.24% | $528,230 |
Wells Fargo Bank was started in 1852 by Henry Wells and William G. Fargo as a bank to help customers build business and manage money. Wells Fargo Bank offers many products through its many branches to meet customers’ needs, including mortgages, wealth management, and personal and small business banking.
We reached out to Wells Fargo Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
PNC Bank, headquartered in Pittsburgh, Pennsylvania, was founded in 1845 and now operates in 27 states as well as the District of Columbia. With a number of personal, business, and institutional banking products available, PNC Bank is able to meet the needs of all of its customers.
We reached out to PNC Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Founded in 1889 as a community bank to provide for local individuals and businesses, United Midwest Savings Bank has over 130 years of experience in meeting customers’ needs. With 5 branches and 1 administrative office in the Columbus, Ohio area, United Midwest Savings banks can help all of its customers.
We reached out to United Midwest Savings Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Live Oak Bank is based in North Carolina but serves all 50 states as a cloud based digital bank. Offering a number of products and services to its customers, from personal to small business loans, as well as options for personal and business banking like checking and savings accounts.
We reached out to Live Oak Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Founded in 1906, Wallis Bank has been providing banking services for over 110 years to its customers in Texas, California, and Georgia. Wallis Bank offers a number of products for business, personal, and loans to meet all types of needs, including small business loans and checking and savings accounts.
We reached out to Wallis Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Building a strong business not only requires the focus on having available capital but also ensuring that the business owner and management have the necessary information and guidance to make wise decisions. There are some great resources in Texas that can help.
SCORE is one of those resources. This is an organization that offers exceptional resources such as webinars, workshops, training programs, and mentorships with successful business owners. There is no cost to a small business that uses these services, but it can provide some of the best hands-on help for growing companies.
The Small Business Administration in Texas is another valuable resource. It offers a range of tools online and in local offices to support company growth. This includes information to help companies make decisions about credit use and lending, but also business formation, certifications, compliance requirements, and much more. There’s no cost to using the bank of online resources available to Texas small businesses either.
If you want to find the best small business loans in other states, click on your state below.
Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.
One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.
Biglaw Investor is helping thousands of lawyers manage and eliminate student loans and make great investment decisions. We’re on a mission to help every lawyer achieve financial independence.