Working capital is the cash available to fund daily business operations — payroll, inventory, rent, and other recurring expenses. Many Texas small businesses struggle with cash flow gaps, especially during growth periods or seasonal fluctuations. Government-backed programs can help bridge these gaps.
SBA Working Capital Options
- SBA 7(a) loans: Up to $5 million for general working capital needs
- SBA CAPLines: Revolving lines of credit for seasonal or contract-based needs
- SBA Microloans: Up to $50,000 through nonprofit lenders for early-stage businesses
- SBA Express loans: Faster approval for loans up to $500,000
CDFI Lending
CDFIs often have more flexible qualification requirements for working capital loans, particularly for businesses in underserved communities or businesses that do not meet conventional bank standards. CDFI guide.
Programs That Reduce Working Capital Needs
Some government programs effectively improve your working capital position by reducing costs or providing reimbursements:
- Skills Development Fund: Training grants that offset hiring and training costs
- WOTC tax credits: Tax credits that reduce your tax liability when hiring from targeted populations
- Property tax abatements: Reduced property taxes improve cash flow
- Franchise tax exemption: Businesses under $2.47 million revenue owe no franchise tax
When to Seek Working Capital
- Before cash flow problems become critical — plan ahead
- When preparing for seasonal demand increases
- When taking on large contracts that require upfront costs
- When growth is outpacing cash collections
Find Working Capital Solutions
Our free screening report identifies grants, tax credits, and government-backed lending programs that may improve your cash flow position. Start your free screening →