Business loans in Texas: state programs, SBA lenders and fast funding.

What state-backed loan programs does Texas offer?

Texas operates three small business financing programs: one capital access program (CAP), one loan guarantee program (LGP), and one loan participation program (LPP). The Office of the Governor of Texas (OOG) through its Economic Development and Tourism Office (EDT) is the implementing entity and the Texas Economic Development Bank within OOG/EDT is the administrator for the programs.

SSBCI is a U.S. Treasury program that gives each state capital to reduce lender risk on small-business loans. You do not apply to the state — you apply to a participating bank, credit union or CDFI, and the program sits behind the loan as a guarantee, a loss reserve, a collateral top-up or a co-investment. Program details and the lender list are published by Office of The Governor of Texas.

Texas Small Business Credit Initiative Capital Access Program

The TSBCI CAP provides portfolio insurance for small business loans by providing a reserve account at each participating lender to cover losses on enrolled loans. The lender and borrower together contribute up to 7 percent of a loan to the reserve fund, which is matched dollar-for-dollar using TSBCI CAP funds. Lenders may use the reserve account to cover losses on their enrolled CAP loans. The program enrolls loans as small as $5,000 and as large as $5 million.

Texas Small Business Credit Initiative Loan Guarantee Program

The TSBCI LGP provides up to an 80 percent guarantee, capped at $4 million, on loans offered by approved lenders. The average guarantee is expected to be 50 percent of the initial loan amount. The program guarantees loans as small as $5,000 and as large as $20 million.

Texas Small Business Credit Initiative Loan Participation Program

The TSBCI LPP includes both a Purchase Participation component and a Community Development Financial Institution (CDFI) Direct Lending Program (CDLP) component. The Purchase Participation component purchases up to 50% of eligible small business loans originated by participating lenders, targeting loans between $5,000 and $5,000,000, with a maximum loan amount of $20 million. The CDLP provides loans to CDFIs. Through the CDLP, SSBCI funds, supported with private matching capital, are made available for relending to eligible small businesses.

Source: U.S. Department of the Treasury, SSBCI Capital Program summaries and program contacts (data current as of August 2026). Allocations are federal SSBCI capital, not the amount available to any single borrower.

How big is the small-business lending market in Texas?

In 2023, banks reporting under the Community Reinvestment Act made $24.3 billion in new loans of $1 million or less to Texas businesses. $8.6 billion of that went to businesses with revenues of $1 million or less.

Those figures cover only large banks that report under the CRA, so they understate total lending — credit unions, CDFIs, online funders and merchant cash advance providers are not included. Still, they show where the money is: $9.6 billion went out in loans of $100,000 or less, the size most Texas small businesses actually borrow. Small businesses in Texas contributed a net increase of 148,641 jobs over the same period tracked by the Bureau of Labor Statistics, 84.0% of the state's total.

Which industries drive small business borrowing in Texas?

By count, the largest small business sectors in Texas are professional and technical services (429,794), construction (428,901), transportation and warehousing (415,445), personal and repair services (393,582) and administrative and support services (367,436). By employment, small firms in health care and social assistance, accommodation and food services and construction employ the most people.

Texas small business employment grew by 41.8 percent between 1998 and 2022, which exceeded the national small business employment growth rate. In 2023, 40,415 identified Texas firms exported goods worth $410.2 billion; 92.3% of them were small businesses, which is why SBA Export Express and Export Working Capital loans are worth asking a lender about. The industry mix matters for funding: construction and transportation firms lean on equipment financing, retail and food service on revenue-based advances tied to card sales, and professional services on lines of credit that smooth invoice timing.

Source: SBA Office of Advocacy 2025 profile (Census Nonemployer Statistics and Statistics of U.S. Businesses, 2022; Census import/export profile).

Does Texas require lenders to disclose the cost of financing?

Yes. The Texas commercial sales-based financing law (HB 700, Texas Finance Code Ch. 398) took effect September 2025 and covers sales-based financing such as merchant cash advances.

Covered providers must give Texas businesses standardized disclosures before signing, including the total dollar cost of the financing and the payment schedule. The law also requires providers and brokers with the Office of Consumer Credit Commissioner by December 31, 2026. Banks and credit unions are generally exempt. Questions go to the Texas Office of Consumer Credit Commissioner.

Sources: law-firm summaries of state commercial financing disclosure laws (Alston & Bird, January 2026; Venable, March 2026). Confirm current requirements with the state regulator.

Where do Texas businesses get SBA loans?

SBA 7(a) and 504 loans are made by banks and credit unions, not the SBA itself. In Texas, lenders are supported by the Dallas / Fort Worth District, El Paso District, Houston District, Lower Rio Grande Valley District, San Antonio District and West Texas District, and free help preparing an application comes from the Texas SBDC regional networks.

• SBA Dallas / Fort Worth District Office — lender relations, local SBA events and the lender match program.
• SBA El Paso District Office — lender relations, local SBA events and the lender match program.
• SBA Houston District Office — lender relations, local SBA events and the lender match program.
• SBA Lower Rio Grande Valley District Office — lender relations, local SBA events and the lender match program.
• SBA San Antonio District Office — lender relations, local SBA events and the lender match program.
• SBA West Texas District Office — lender relations, local SBA events and the lender match program.
• Texas SBDC regional networks — no-cost consulting on loan packaging, projections and lender selection (funded in part by the SBA).
• South-West Texas Border SBDC (San Antonio)
• Texas Gulf Coast SBDC (Houston)
• Northwest Texas SBDC (Lubbock)
• USDA Rural Development programs in Texas — Business & Industry loan guarantees and the Intermediary Relending Program for businesses in rural areas.

SBA loans have the lowest rates but the slowest timelines — typically weeks to months. See our SBA loans page for the trade-offs.

What are the fastest business funding options in Texas?

Merchant cash advances, short-term working capital loans and draws on an existing line of credit are the products that realistically fund within one business day. SBA and bank loans take weeks; SSBCI-backed loans move at the lender's pace.

From Houston, San Antonio, Dallas, Austin, Fort Worth and El Paso, Texas owners use fast funding for payroll, inventory, equipment and repairs. Same Day Business Fund refers business owners to ROK Financial, a business-financing marketplace with working capital, lines of credit, equipment financing and merchant cash advances from $10,000 to $5 million. We may be compensated when a referral results in funding; that never changes the price you pay. Same-day products are priced with a factor rate rather than an interest rate — see how same-day funding works and what it costs before you sign anything.

Typical minimums for those programs are about 4 months in business and $10,000 in monthly sales, with the credit bar set by the product — the same-day funding guide has the full requirements table and a factor-rate worked example.

Looking for money you do not repay? See small business grants in Texas. Or browse bad-credit business loans and funding by industry.

Frequently asked questions

Sources

• SBA Office of Advocacy — 2025 Small Business Profile: Texas (Census, BLS and FFIEC CRA data)
• U.S. Department of the Treasury — SSBCI Capital Program summaries and program contacts
• U.S. Small Business Administration — district offices; America's SBDC — state network directory
• USDA Rural Development — Texas state office
• ROK Financial — published qualification guidelines