State guide · Business loans
Business Loans in Texas: Small Business Loan Options, Requirements and Where to Apply
Texas has about 3.5 million small businesses, and most of them borrow from one of five places: a bank, an SBA lender, an online term lender, a line-of-credit provider or a revenue-based funder. This guide compares the business loans available to Texas owners in 2026, what each one requires, how fast it funds, the Texas rules that protect borrowers and how to apply once for several options.
How Do You Get a Business Loan in Texas?
Most established Texas businesses qualify for a business loan with 12+ months in business, $20,000+ in monthly revenue deposited to a business bank account and the last 3 months of bank statements. Working capital loans fund in 24 to 48 hours from $20,000 to $500,000+; business term loans run up to $2 million over up to 3 years; lines of credit run $20,000 to $2 million; and SBA loans reach $5 million with 5- to 25-year terms but take weeks. One application through RAN Funding reaches the lenders in our network that fit your file.
Business Loan Options in Texas at a Glance
| Loan type | Amount | Term | Speed | Best for |
|---|---|---|---|---|
| Working capital loan | $20K – $500K+ (up to $2M) | 3 – 18 months | 24 – 48 hours | Payroll, inventory, gaps, growth |
| Business term loan | Up to $2M | Up to 3 years | 2 – 5 days | Expansion, larger projects |
| Business line of credit | $20K – $2M | Revolving | 2 – 3 days | Recurring cash-flow needs |
| SBA 7(a) and 504 loans | Up to $5M | 5 – 25 years | 30 – 90 days | Lowest cost on large, planned needs |
| Equipment financing | Up to $2M (SBA to $5M) | 2 – 7 years | 1 – 3 days | Vehicles, machinery, technology |
| Invoice factoring | $20K – $5M | Per invoice | 3 – 7 days to set up | B2B and government suppliers |
Amounts and timelines available through RAN Funding’s lender network in 2026. The lender sets final terms.
Typical timelines after approval for businesses in Texas; bar length is on a log scale. The lender sets the final timing.
Small Business Loan Requirements in Texas
Lenders in Texas size most small business loans on the revenue you deposit, not only on your credit score. Here is what each product typically looks for:
| Product | Time in business | Credit | Revenue | Main documents |
|---|---|---|---|---|
| Working capital loan | 12 months (sometimes 6) | 500+ | $20,000+ a month | 3 months of bank statements |
| Business line of credit | 1+ year | 650+ | $250,000+ a year | Bank statements; financials for larger lines |
| Business term loan | 12 – 24 months | 600 – 680+ | $20,000+ a month | Bank statements; tax returns for larger amounts |
| SBA loan | 2+ years | Good personal credit | $250,000+ a year | 2 years of business and personal tax returns |
| Equipment financing | 12 months | 600+ | $20,000+ a month | Equipment quote; bank statements |
The full checklist is in business loan requirements and what documents you need for a business loan.
Bank, SBA or Online Lender: Which Fits a Texas Business?
- Banks and credit unions. The lowest rates for owners with 2+ years of profitable tax returns, strong credit and collateral. Expect full financials and several weeks.
- SBA lenders. SBA 7(a) and 504 loans carry government-capped rates and the longest terms. The SBA’s Houston, Dallas/Fort Worth, San Antonio, El Paso, Lower Rio Grande Valley and West Texas district offices support Texas borrowers, but the loan itself comes from an SBA-approved lender. See current SBA loan rates.
- Online and alternative lenders. Underwrite mainly on bank statements and fund in days. They cost more than a bank, so they fit time-sensitive needs and businesses a bank turned down.
- Revenue-based funders. Repaid from a share of deposits or a fixed daily or weekly amount, priced from a 1.08 factor rate. Fast, but best kept short and specific. See merchant cash advances.
Many Texas owners use two of these at once: an SBA or bank loan for the long-term project and a line of credit for timing gaps.
Texas Rules That Protect Business Borrowers
Texas regulates one category of business financing specifically: commercial sales-based financing, such as merchant cash advances and revenue-based financing. Under House Bill 700, now Chapter 398 of the Texas Finance Code, in effect since September 1, 2025:
- Providers must give written disclosures, signed before the deal closes, on sales-based financing offers under $1 million: amount, disbursement, finance charge, total repayment, payments, other fees and collateral.
- Providers and brokers of sales-based financing must register with the Texas Office of Consumer Credit Commissioner; those already operating have until December 31, 2026.
- Automatic debits from your bank account are limited unless the provider holds a first-priority security interest in that account.
- Confession-of-judgment clauses are void.
Traditional term loans, lines of credit and SBA loans fall outside HB 700. If you take a revenue-based offer, ask the funder how it collects payments in Texas and compare the disclosed total repayment against a term loan for the same amount.
Where Texas Businesses Use Business Loans
Small businesses make up 99.8% of Texas firms and employ about 5.1 million people, roughly 44% of the state’s workforce, according to the SBA Office of Advocacy. The industries with the most small business employment drive most Texas loan requests:
Contractors use loans to cover crews and materials before the next draw comes in.
- Health care practices. Equipment, new locations and working capital while claims pay.
- Restaurants and food service. Build-outs, kitchen equipment and opening a second location.
- Construction and contractors. Materials, crews and bonding capacity for new contracts.
- Professional services. Hiring ahead of new client work billed on 30- to 60-day terms.
- Retail. Inventory and store improvements in fast-growing metros.
Recently Funded in Texas
- $100,000 for a Dallas restaurant, funded in 24 hours
- $32,500 for a window tint and auto accessories shop, funded in 3 days
- How a Texas contractor financed the start-up costs of a new contract
Real funded deals, with business names withheld.
Business Loans by Texas City
Business loans in Houston · Business loans in Dallas
For seasonal timing, regional industries and every product beyond loans, see our full guide to business funding in Texas.
En español: Fondos para negocios en Texas · Préstamos para negocios en Houston
How to Apply for a Business Loan in Texas
- Gather your documents. The last 3 months of business bank statements, a government ID and your business’s EIN; tax returns only for SBA and larger term loans.
- Apply once. About five minutes, with a soft credit check only.
- A specialist reviews your file the same day and matches it to the lenders in our network whose criteria fit.
- Compare offers on total cost, payment and term, not just the headline rate.
- Sign and fund. Working capital funds in 24 to 48 hours; other products follow the timelines above.
Common Questions
What do I need to qualify for a business loan in Texas?
Most Texas businesses we fund have 12+ months in business, $20,000 or more in monthly revenue deposited to a business bank account and the last 3 months of business bank statements. Lines of credit and term loans usually also look for a 600 to 650+ credit score; working capital loans can work from about 500 when deposits are strong.
How fast can I get a business loan in Texas?
Working capital loans fund in 24 to 48 hours after approval, lines of credit open in 2 to 3 days and term loans in 2 to 5 days. SBA loans take 30 to 90 days because of the documentation and the SBA review.
How much can a Texas small business borrow?
Working capital and revenue-based loans typically run $20,000 to $500,000+, term loans and lines of credit up to $2 million, and SBA loans up to $5 million. The amount is sized mainly on your monthly deposits and, for SBA and bank loans, your tax returns.
Can I get an SBA loan in Texas?
Yes. SBA 7(a) and 504 loans are made by SBA-approved lenders across Texas, with support from the SBA’s six Texas district offices. Most SBA lenders look for 2 years of business tax returns, $250,000+ in annual revenue and good personal credit.
How does Texas regulate business funding?
Texas House Bill 700, in effect since September 1, 2025, covers commercial sales-based financing such as merchant cash advances. It requires signed pre-closing disclosures on offers under $1 million, registration of providers and brokers with the Office of Consumer Credit Commissioner, limits on automatic debits and voids confession-of-judgment clauses. Term loans, lines of credit and SBA loans are outside it.
Is RAN Funding a lender?
No. RAN Funding is a business financing broker. One application reaches the lenders in our network that fit your file, a specialist compares the offers with you, and the lender you choose sets the final terms.
Sources
- Texas 2025 Small Business Profile — U.S. Small Business Administration, Office of Advocacy
- SBA District Offices — U.S. Small Business Administration
- HB 700 bill analysis (89th Legislature) — Texas Legislature Online
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist reads your statements the same day and tells you which products fit, what each costs and how fast it funds.
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