SBA Business Loans in Texas
SBA business loans are commercial loans partially guaranteed by the U.S. Small Business Administration, which allows lenders to offer better terms than conventional loans for the same credit profile. The two primary SBA programs are the 7(a) loan (for working capital, equipment, and business acquisitions) and the 504 loan (for major fixed assets). Texas is one of the largest SBA lending markets in the country.
- SBA 7(a) maximum: $5,000,000 (standard); $500,000 (SBA Express, faster approval)
- SBA 504 maximum: $5,500,000 (CDC portion); total project may exceed $10M
- Down payment: 10% typical for most SBA loans; 20–30% for special-purpose properties
- Term: up to 10 years for working capital; 25 years for real estate; 10 years for equipment
- Time to close: 30–90 days for standard 7(a); 60–120 days for 504
Overview
SBA loans are not a single product — they are a guarantee framework applied to commercially underwritten loans. The SBA does not lend directly to businesses; it guarantees a portion (typically 75–85%) of loans made by SBA-approved lenders. This guarantee allows lenders to offer better rates, longer terms, and lower down payments than they could on a conventional loan for the same borrower.
The two programs available to most Texas businesses are:
The SBA 7(a) program: the most flexible SBA loan. Funds can be used for working capital, equipment, real estate, inventory, debt refinancing, and business acquisitions. The maximum is $5,000,000. Approval takes 30–90 days for standard applications. The SBA Express program (up to $500,000) offers faster approval — typically within 36 hours of lender submission — at the cost of a lower guarantee percentage.
The SBA 504 program: designed for major fixed-asset purchases — commercial real estate and heavy equipment. The structure is unique: 50% from a conventional lender, 40% from a Certified Development Company (CDC), and 10% equity from the borrower. Rates on the CDC portion are fixed and tied to Treasury bond rates, making 504 loans one of the most cost-effective financing structures available for real estate purchases.
Texas has consistently ranked among the top five states for SBA loan volume, with high concentrations of SBA lenders in Dallas, Houston, San Antonio, and Austin. SBA preferred lenders — those with delegated authority to approve loans without full SBA review — can close faster than non-preferred lenders.
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Frequently Asked Questions
What credit score do I need for an SBA loan in Texas?
Most SBA lenders require a minimum personal credit score of 650–680 for a 7(a) loan. Some preferred lenders set their minimums higher. The SBA itself sets a minimum SBSS score of 155 for SBA Express loans. Credit score is one factor — revenue, cash flow, time in business, and industry also matter.
How long does an SBA loan take to close in Texas?
Standard SBA 7(a) loans take 30–90 days from application to funding. SBA Express loans can be approved in days and funded in 2–4 weeks. SBA 504 loans take 60–120 days. Timing depends heavily on the lender's processing capacity and the completeness of the application package.
Can I use an SBA loan to buy an existing Texas business?
Yes. SBA 7(a) loans are frequently used for business acquisitions. The buyer must contribute at least 10% equity, and the target business must have documented operating history and cash flow sufficient to service the debt. Business acquisitions are one of the most common uses of SBA 7(a) loans.
What is an SBA Preferred Lender?
SBA Preferred Lenders have delegated authority to approve SBA loans without a full SBA review, which speeds up the process. Not all SBA-approved lenders are preferred lenders. Preferred Lender status requires meeting volume and performance standards set by the SBA.
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Page last updated: August 2026