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Small Business Loans in Texas: Best Bank & SBA Lender for Startups, Women & Minorities

Texas has one of the highest rates of entrepreneurship in the country, since over one and a half million people own their own businesses here. Three-quarters of that amount accounts for companies that run independently with no employees or staff. Because of the high amount of entrepreneurial businesses being started in the state, tens of thousands of people apply for small business loans each year.

When to Take Out a Business LoanSmall Business Loans in Texas

Business loans are often given exclusively to business owners who have an established company that is several years old. Banks and other lenders normally won’t approve loans for brand new companies, as many of these fail within their first year of opening. Lenders will also assess the likelihood of success of companies applying for loans. You’ll need to provide valid documentation pertaining to sales, receipts and contracts that your company has established in its lifetime. Companies that rely on a niche market may have trouble getting the loan they need to expand their business.

The best time to take out a loan is when you need extra funds to establish your company. You might need to put an expansion on your building, create a professional website or require money to create additional services. Before taking out the loan, you should know how much you need and what that money will go towards. Wasting a business loan on frivolous spending that does nothing for raising the capital of your company will be a recipe for disaster.

The Application Process

When applying for a business loan, the lender will discuss terms and interest rate agreements that pertain to the contract. Most business loans are approved for anywhere from five to ten years, with most businesses taking out seven year loans. A credit and financial report will be run for both you and your business, which means that any apparent delinquent payments or collections will be held against you.

Interest Rate Comparison

As with any other type of loan, small business loans are not without interest. Interest rates can vary from 6 to 8.5 percent. The majority of entrepreneurs in Texas get a rate of about 5 percent, which means that one-fifth of their loan amount is solely based on interest. Loans can range from an easy $5,000 to millions of dollars. The amount you’ll be approved for depends on your capital, credit score and financial standing with the bank of your choosing.

Best Lenders in Texas

The best small business loan lenders in Texas are listed below:

First National Bank of Albany

Located in Albany, Texas, this lender has approved business loans for over 100,000 entrepreneurs. Their customer satisfaction rating is an astounding 95 percent.

Community Bank

You’ll find this lender in Fort Worth offering advance loans to people in need of financial security. To date, they’ve approved almost 150,000 loans to small businesses throughout the state.

Horizon Bank

The Horizon Bank and Lending Office can be found in Austin, Texas. They have given out loans to over 100,000 small businesses in Texas. Their satisfaction rating is a steady 87.5 percent.

 

Top Cities in Texas and Their Lenders

Texas is one of the most famous states in the country. It’s a great place to start a business – there’s no state income tax. In addition, it’s an extremely affordable place to live. Many people view Texas a rural area, but the state has plenty of advanced industries present in the region. Oil and gas play a vital role in the economy – there is plenty of space to enter the energy industries in the region. Texas has a number of large cities to start a business in, so it’s important to choose the right one.

This part of our article will take a look at the top cities to start a new business within Texas. We’ll also provide you with suggestions on the top lenders in each city.

Houston, Texas

Houston is by far the largest city in the state of Texas. It’s also one of the fastest growing cities in the country. The city has benefited largely from the energy industry in the area. If you want to move to a city that is large, yet still affordable, this is the best choice in Texas. Below are our favorite lenders in the city of Houston:

Compass Bank

Compass Bank is a local, regional lender that is owned by Spanish bank BBVA. They’re a great choice for people who want a local bank with plenty of lending power. They have branches in most areas of the city, so it won’t be hard to go speak with a commercial lending specialist if you need some help.

Amegy Bank

Amegy Bank is another regional lender with a local presence in Houston. They also have a good reputation in the Houston region – they have branches throughout the city. They can help you get the funding you need to take your business to the next level.

San Antonio, Texas

As its name suggests, San Antonio has a huge Hispanic influence. The city is well-known of its Latin food and culture. If you’re looking to start a business in an affordable city, this is a good option for retail, energy, and hospitality. There is also plenty of nearby nature and wildlife. Below are our favorite lenders in the city:

The Bank of San Antonio

The Bank of San Antonio is a local lender in the San Antonio region that has a business banking and personal banking division. If you want a lender that can provide affordable lending and business banking services, this is the perfect choice in San Antonio. You can get term loans and business lines of credit that suit your business.

Jefferson Bank

Jefferson Bank is another small lender that helps out businesses in the San Antonio area. They also help businesses that lie outside of the city. If you want another lender that also offers business lines of credit and traditional small business loans, Jefferson Bank is a solid choice with a good reputation.

Dallas, Texas

Dallas is the finance capital of the state of Texas – there are plenty of financial services companies operating in the area. It also has a thriving economy that has businesses that operate in a number of different industries. It’s a beautiful city to live in. Below is our favorite lender in Dallas:

North Dallas Bank & Trust

North Dallas Bank & Trust is a small Dallas-based bank to consider if you’re starting a business in the area. They can provide equipment financing, traditional loans, and lines of credit. You can also get business banking services if you’re looking for a one-stop-shop.

Austin, Texas

Austin is the culture capital of the state of Texas. They are hosts some of the best live music venues in the country. It’s also home to the University of Texas – the largest university in the state of Texas. Below is our favorite lender in Austin:

Frost Bank

Frost Bank is a famous bank that is based in Austin, Texas. They have offices throughout Texas, but they prefer to work with business owners in Austin. They have a large office right in the middle of downtown. You can speak with a lending specialist on-site if you need advice.

Fort Worth, Texas

Fort Worth is considered an extension of the city of Dallas. It also benefits from finance and the energy industries. Below is our favorite lender in 

Fort Worth Community Credit Union

If you’re looking for affordable financing for your business, Fort Worth Community Credit Union is the best choice in the Fort Worth region. If you’re a member of the credit union, you can get great rates on term loans and business lines of credit.

El Paso, Texas

El Paso, Texas is a West Texas city that sits on the border of Mexico. It’s a city that also benefits from the oil and gas industries. Given its proximity to the border, El Paso can often be quite dangerous. This being said, it’s an extremely affordable place to live. Below is our top lender in the city:

GECU
GECU is one of the top lenders in the El Paso region. If you’re thinking of starting a business in the area, this is a great locally owned lender. They offer a range of different lending products, as well as traditional business banking services.

 

Remember, some of these companies or banks are very specialized and may only handle SBA loans for women or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don’t worry as there still may be other alternative lenders willing to work with you.


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