The U.S. Small Business Administration (SBA) facilitates billions of dollars in lending to Texas businesses each year. SBA loans are not direct government loans. They are bank or CDFI loans backed by a federal guarantee that reduces lender risk and enables better terms for borrowers. This complete guide covers every major SBA program, eligibility criteria, and the application process for Texas businesses.
SBA 7(a) Loan Program
The flagship SBA program. Provides up to $5 million for nearly any legitimate business purpose: working capital, equipment, leasehold improvements, business acquisitions, and debt refinancing. Terms extend up to 10 years for working capital and equipment, and up to 25 years for real estate. The SBA guarantees up to 85% of loans $150,000 and under, and 75% above that threshold.
SBA 504 Loan Program
Designed for long-term, fixed-rate financing of major assets. The typical structure involves a conventional lender providing 50%, a Certified Development Company (CDC) providing 40% backed by the SBA, and the borrower contributing 10% as down payment. Best for commercial real estate purchases and large equipment acquisitions. The fixed rate on the CDC portion provides long-term payment certainty.
SBA Microloan Program
Provides up to $50,000 through community-based nonprofit lenders. Designed for startups and smaller businesses. Texas microlenders include PeopleFund, LiftFund, and BCL of Texas. More flexible qualification requirements than bank loans. Includes mandatory technical assistance from the microlender.
SBA Express Loans
Up to $500,000 with expedited SBA processing (36-hour turnaround). The SBA guarantees 50% of Express loans. Available as term loans or revolving lines of credit. Best for businesses with existing banking relationships that need fast access to capital.
SBA Community Advantage
Allows mission-based lenders (CDFIs) to make SBA 7(a) loans up to $350,000 to businesses in underserved markets. Focuses on low- and moderate-income communities, startups, and businesses owned by veterans, women, and minorities.
SBA Disaster Loans
The SBA provides direct loans to businesses affected by declared disasters. Unlike other SBA programs, disaster loans are made directly by the SBA rather than through participating lenders. Texas businesses affected by hurricanes, floods, tornadoes, and other disasters may be eligible.
General Eligibility Requirements
- The business must operate for profit in the United States
- The owner must have invested personal equity
- The business must have exhausted other financing options
- The business must meet SBA size standards for its industry
- The business must not be delinquent on federal debt
- The owner must have reasonable credit history
Required Documentation
- Business and personal tax returns (2-3 years)
- Year-to-date financial statements
- Personal financial statement for owners with 20%+ ownership
- Business plan or description of operations
- Explanation of how loan proceeds will be used
- Business licenses, leases, and articles of organization
Finding SBA Lenders in Texas
- SBA Lender Match tool at sba.gov
- Texas SBA district offices (Houston, San Antonio, Dallas/Fort Worth, El Paso, Lubbock)
- SCORE mentors for lender referrals
- SBDCs for loan packaging assistance
- Texas CDFIs for Community Advantage and microloan programs
Find Programs That May Fit Your Business
SBA loans are most effective when combined with other programs. Texas businesses may qualify for grants, tax credits, workforce training, and local incentives that complement SBA financing.
Not sure which programs may fit your business? Our free screening report checks your business against 150+ verified programs and shows you which ones may match. Start your free screening →