The U.S. Small Business Administration (SBA) operates the largest network of small business support programs in the country. Texas businesses benefit from every SBA program, and Texas consistently ranks among the top states for SBA lending volume. In fiscal year 2025, Texas SBA offices approved billions of dollars in small business financing.
This guide covers every major SBA program available to Texas businesses, including loan programs, grant opportunities, certification programs, and free advisory resources. Whether you need financing, government contracting access, or expert mentoring, the SBA ecosystem has a program for your situation.
SBA Overview: What the SBA Does
The SBA does not lend money directly in most cases. Instead, it guarantees loans made by approved lenders (banks, credit unions, and CDFIs), which reduces the lender's risk and makes financing available to businesses that might not qualify for conventional loans. The SBA also administers grant programs, certification programs, and a nationwide network of free advisory services.
Key SBA functions for Texas businesses:
- Loan guarantees: 7(a), 504, Microloans, and Express programs
- Grant programs: SBIR and STTR research grants
- Certifications: 8(a), WOSB, SDVOSB, HUBZone for government contracting
- Advisory services: SBDCs, SCORE, WBCs
- Disaster assistance: Low-interest disaster loans
- Contracting: Set-aside programs for small businesses
SBA Loan Programs
SBA loan programs are the most widely used SBA resources. Each program serves a different purpose, and understanding the differences helps you choose the right one for your situation.
SBA 7(a) Loans
The 7(a) program is the SBA's flagship lending program and the most flexible option for Texas small businesses. It covers virtually any business purpose.
| Feature | Detail |
|---|---|
| Maximum loan amount | $5,000,000 |
| SBA guarantee | Up to 85% (loans up to $150K) or 75% (loans over $150K) |
| Interest rates | Prime + 2.25% to Prime + 4.75% (variable) |
| Term length | Up to 10 years (working capital), 25 years (real estate) |
| Eligible uses | Working capital, equipment, real estate, debt refinancing, acquisition |
| Down payment | Typically 10-20% |
Best for: Established businesses needing flexible general-purpose financing. The 7(a) is the most common SBA loan in Texas.
Full SBA 7(a) guide | For restaurants | For construction | For startups | For franchises
SBA 504 Loans
The 504 program provides long-term, fixed-rate financing for major assets. It is structured as a partnership between a Certified Development Company (CDC), a private lender, and the borrower.
| Feature | Detail |
|---|---|
| Maximum loan amount | $5,500,000 (up to $5.5M for manufacturing/energy) |
| Interest rates | Fixed rate, typically below market rates |
| Term length | 10 or 20 years |
| Eligible uses | Commercial real estate, heavy equipment, building improvements |
| Down payment | Typically 10% (borrower), 40% (bank), 50% (CDC/SBA) |
| Key requirement | Must create or retain jobs (1 job per $65,000 of SBA funds) |
Best for: Businesses purchasing commercial property or heavy equipment. The fixed rate and low down payment make 504 loans particularly attractive for manufacturers and industrial businesses.
Full SBA 504 guide | 504 for manufacturers | 504 for hotels | 7(a) vs 504 comparison
SBA Microloans
The Microloan program provides small loans through SBA-approved intermediary lenders, typically nonprofit organizations and CDFIs.
| Feature | Detail |
|---|---|
| Maximum loan amount | $50,000 (average around $13,000) |
| Interest rates | Typically 8-13% (set by intermediary) |
| Term length | Up to 6 years |
| Eligible uses | Working capital, inventory, supplies, furniture, fixtures, equipment |
| Not eligible | Real estate purchases, debt refinancing |
Best for: Startups and very small businesses that need modest capital and may not qualify for larger SBA loans. Requirements are more flexible than 7(a) or 504.
Microloans for food trucks | Microloans for salons | Microloan vs 7(a) comparison
SBA Express Loans
SBA Express is a streamlined version of the 7(a) program with faster turnaround times. The SBA responds to Express applications within 36 hours.
| Feature | Detail |
|---|---|
| Maximum loan amount | $500,000 |
| SBA guarantee | 50% |
| Decision timeline | 36 hours from SBA |
| Revolving lines of credit | Available (up to 7-year revolving period) |
Best for: Businesses needing faster access to capital. The lower guarantee means lenders may require stronger creditworthiness.
Express vs standard loan comparison
SBA Loan Program Comparison
| Program | Max Amount | Best For | Speed |
|---|---|---|---|
| 7(a) | $5M | General purpose | Weeks to months |
| 504 | $5.5M | Real estate and equipment | Months |
| Microloan | $50K | Startups, small needs | Days to weeks |
| Express | $500K | Fast access | Days |
SBIR/STTR Grant Programs
The SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs are the SBA's primary grant programs. They fund research and development through competitive awards.
How SBIR/STTR Works
Eleven federal agencies set aside a portion of their extramural R&D budgets for small businesses. Companies apply directly to each agency for funding related to that agency's mission. The programs operate in phases:
| Phase | Purpose | Typical Award | Duration |
|---|---|---|---|
| Phase I | Feasibility and proof of concept | $50,000 - $275,000 | 6-12 months |
| Phase II | Full research and development | $500,000 - $1,500,000 | 24 months |
| Phase III | Commercialization (no SBIR funding) | Varies | Varies |
SBIR/STTR by Agency
- NSF SBIR — Technology, engineering, and science innovation
- DOD SBIR — Defense and national security technologies
- NIH SBIR — Biomedical and healthcare research
- DOE SBIR — Energy technology and efficiency
Key requirement: Your business must be a for-profit U.S. small business with 500 or fewer employees. STTR additionally requires a formal partnership with a research institution.
Full SBIR guide for Texas | Phase I vs Phase II comparison | What is an SBIR grant?
SBA Certification Programs
SBA certification programs give qualifying businesses access to government contracting set-asides and sole-source contracts. These certifications can be transformative for businesses seeking federal and state procurement opportunities.
SBA 8(a) Business Development Program
The 8(a) program is a 9-year business development program for socially and economically disadvantaged small businesses. Participants gain access to sole-source contracts up to $4 million (goods) or $7 million (manufacturing), set-aside competitions, mentoring, and business development support.
Full 8(a) certification guide | How to apply for 8(a)
WOSB/EDWOSB
The Women-Owned Small Business (WOSB) and Economically Disadvantaged WOSB (EDWOSB) programs provide access to set-aside and sole-source contracts in industries where women-owned businesses are underrepresented. Self-certification is available through SAM.gov.
WOSB certification guide | How to get WOSB certified | WOSB vs EDWOSB
SDVOSB
Service-Disabled Veteran-Owned Small Business (SDVOSB) certification provides access to 3% of federal contracting dollars set aside for service-disabled veteran-owned businesses. As of 2023, SDVOSB certification is managed by the SBA (previously VA).
HUBZone
Historically Underutilized Business Zones (HUBZone) certification is for small businesses that operate and employ workers in designated HUBZone areas. Certified businesses receive 10% price preference in full-and-open contract competitions and access to HUBZone set-aside contracts. Several areas in Texas qualify as HUBZones.
Certification Comparison
| Certification | Who Qualifies | Key Benefit | Duration |
|---|---|---|---|
| 8(a) | Socially/economically disadvantaged owners | Sole-source contracts, mentoring | 9 years |
| WOSB | 51%+ women-owned | Set-aside contracts in underrepresented industries | Ongoing (annual recertification) |
| SDVOSB | 51%+ service-disabled veteran-owned | 3% federal contracting set-aside | Ongoing |
| HUBZone | Business in designated HUBZone area | 10% price preference, set-asides | Ongoing (recertification every 3 years) |
Full Texas certifications guide | HUB vs 8(a) comparison
Free SBA Resources in Texas
Beyond loans and certifications, the SBA funds a network of free advisory services available to every Texas small business:
Small Business Development Centers (SBDCs)
Texas operates the largest SBDC network in the country, with centers at universities across the state. SBDCs offer free one-on-one advising, business planning assistance, market research, financial analysis, and help identifying grant and loan programs. Four regional networks serve the state: UT San Antonio, University of Houston, UT Dallas, and Texas Tech.
Texas SBDC locations and services | SCORE vs SBDC comparison
SCORE Mentoring
SCORE provides free one-on-one mentoring through volunteer business professionals. Texas has SCORE chapters in every major metro area. Mentors provide ongoing relationships (not just one-time sessions) and can help with business planning, marketing, financial management, and grant strategy.
How SCORE mentoring works in Texas
Women's Business Centers (WBCs)
WBCs provide specialized support for women entrepreneurs, including business training, counseling, and access to credit and capital. Texas has several WBCs across the state.
PTAC (Procurement Technical Assistance Centers)
PTACs help businesses navigate government contracting — from registration to proposal writing to contract administration. Essential for businesses pursuing 8(a), WOSB, SDVOSB, or HUBZone contracts.
Texas SBA District Offices
Texas has five SBA district offices, more than most states. Each office serves a designated geographic region:
| Office | Region Served |
|---|---|
| Houston District Office | Greater Houston, Southeast Texas |
| Dallas/Fort Worth District Office | North Texas, Northeast Texas |
| San Antonio District Office | Central Texas, South Texas |
| El Paso District Office | West Texas |
| Lower Rio Grande Valley District Office | Rio Grande Valley, Deep South Texas |
How to Apply for SBA Programs
For SBA Loans
- Determine which program fits. Use the comparison table above to identify the best loan program for your needs.
- Find an SBA-approved lender. Use SBA Lender Match (lendermatch.sba.gov) to connect with lenders in Texas. Your local SBDC can also recommend lenders.
- Prepare your application. Gather financial statements, tax returns, business plan, and personal financial statement. Your SBDC advisor can help package the application.
- Apply through the lender. The lender processes the application and submits it to the SBA for guarantee approval.
Step-by-step guide to getting an SBA loan in Texas
For SBIR/STTR Grants
- Register on SAM.gov and get a UEI number. SAM.gov guide
- Search SBIR.gov for open solicitations matching your technology area.
- Write a Phase I proposal describing your innovation, technical approach, and commercialization potential.
- Submit through the agency's submission portal.
For Certifications
- Determine eligibility. Each certification has specific ownership, size, and operational requirements.
- Apply through SAM.gov (for WOSB, SDVOSB) or certify.sba.gov (for 8(a), HUBZone).
- Prepare supporting documentation including ownership records, tax returns, organizational documents, and personal financial statements.
Frequently Asked Questions
Do SBA loans require collateral?
For loans over $25,000, lenders must follow their existing collateral policies. The SBA does not decline loans solely for lack of collateral, but lenders must take available collateral. Personal guarantees are required from owners with 20%+ ownership.
What credit score do I need for an SBA loan?
The SBA does not set a minimum credit score. Individual lenders set their own credit requirements, but most SBA lenders want to see a credit score of 650 or higher. Some microloan and CDFI lenders work with lower scores.
Can startups get SBA loans?
Yes, but options are more limited. Microloans and SBA Express are the most startup-friendly. For 7(a) and 504, lenders typically want to see some operating history or strong industry experience. SBA 7(a) for startups
How long does SBA loan approval take?
Express loans: 36 hours for SBA decision. Standard 7(a): 5-10 business days for SBA decision, but total process is 30-90 days. 504 loans: 60- 90 days typically. Microloans: varies by intermediary, often 2-4 weeks.
Can I have multiple SBA loans?
Yes. There is no limit on the number of SBA loans you can have, but total SBA exposure cannot exceed program maximums. Many Texas businesses combine a 504 loan for real estate with a 7(a) for working capital.
Next Steps
Use our free screening tool to match your business against SBA programs and 150+ other Texas programs, or explore our related guides: