Best Small Business Loans in Texas 2023: Finest Selection

by

LLCBase is your go-to place for everything about LLCs, and it's led by Brian Cohan, who's an expert in the field. Brian and our team are here to give you clear and helpful advice on how to set up and manage an LLC. We've been through the process and know the ins and outs. Our articles and guides are based on real experiences, making them practical for you. We're committed to helping you make smart choices for your business. With LLCBase, you're in good hands as you navigate the world of LLCs.

Best Small Business Loans in Texas

In 2023, the landscape for small business loans in Texas is expected to remain competitive and diverse, offering entrepreneurs various financing options to support their ventures. With the continued growth of online and alternative lenders, small businesses will have even more opportunities to access tailored financing solutions that best suit their needs. 

Discover a world of funding solutions for your Texas LLC, from short-term cash boosts and flexible credit lines to tailor-made financing options. Gain access to diverse lenders, loan products, and cutting-edge fintech platforms for speedy, efficient, and accessible small business loans in Texas. Let LLCBase guide you through the exciting journey of setting up your business – we’ve got your back every step of the way.

Small Business Loans

What is a Small Business Loan

A small business loan provider is a financial institution, lender, or service that offers financing solutions specifically designed for small businesses in Texas. These providers facilitate access to capital for small businesses, helping them meet various financial needs such as working capital, equipment purchases, expansion, and other growth-related expenses. Small business loan providers can include Texas banks, credit unions, online lenders, and alternative financing companies. They offer a range of loan products, such as term loans, lines of credit, invoice financing, and merchant cash advances, each tailored to meet small businesses’ unique needs and requirements.

10 Best Small Business Loans in Texas

We will discuss Texas’s ten best small business loans, including eligibility criteria, loan amounts, annual percentage rates (APRs), and required minimum credit scores. Business loans provide financing options for business owners who want to start an LLC in Texas. We’ll also provide the pros and cons of each business loan to help you make the best decision for your Texas LLC.

1. OnDeck – Best for Short-term Loans

OnDeck is a leading online lender specializing in providing small businesses with short-term loans and lines of credit. With a simple application process, fast approval times, and flexible repayment options, OnDeck is an ideal choice for businesses seeking quick access to capital for short-term needs, such as working capital, inventory purchases, or unexpected expenses.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 29.9%

Minimum Credit Score: 625

Pros
  • Fast approval process
  • Flexible repayment options
  • Offers both term loans and lines of credit
Cons
  • High-interest rates for those with lower credit scores
  • Requires a personal guarantee
  • Not ideal for long-term financing
  • Unavailable in Nevada, North Dakota, or South Dakota.
Apply to OnDeck

2. Lendio – Best for Lender Comparison

Lendio is a small business loan marketplace that connects borrowers with a vast network of lenders, allowing business owners to compare loan options from various providers. By offering a wide range of loan products and personalized recommendations, Lendio helps businesses find the best financing solutions tailored to their unique needs and financial situation.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 560 or higher

Loan Amounts: $500 – $5,000,000

APR: starts at 3%

Minimum Credit Score: 560

Pros
  • Access to a vast network of lenders
  • One application for multiple loan options
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees
Apply to Lendio

3. QuickBridge – Best for Fast Funding

QuickBridge is an alternative lender that provides fast and flexible funding solutions to small businesses. With a simple application process, quick approval, and funding often within 24 hours, QuickBridge is an excellent choice for businesses needing immediate capital to address short-term financial needs or seize growth opportunities.

Eligibility Criteria

  1. At least nine months in business
  2. Minimum monthly revenue of $8,000
  3. Personal credit score of 850 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10-factor rates

Minimum Credit Score: 850

Pros
  • Fast funding, often within 24 hours
  • Simple application process
  • Early payoff discounts
Cons
  • Requires daily or weekly repayments
  • Short loan terms (up to 15 months)
  • Not ideal for startups or businesses with low revenue
Apply to QuickBridge

4. American Express Business Blueprint™ – Best for Lines of Credit

American Express Business Blueprint™ offers a range of financial solutions, including term loans and lines of credit, exclusively to American Express cardmembers. With flexible repayment options, competitive rates, and no origination or prepayment fees, this program provides businesses with the financial flexibility and support they need to grow and succeed.

Eligibility Criteria

  1. Must be an American Express cardmember
  2. Good credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $250,000

APR: Varies by loan term

Minimum Credit Score: 640; good credit history is required

Pros
  • Flexible repayment options
  • No origination or prepayment fees
  • Offers both term loans and lines of credit
Cons
  • Only available to American Express cardholders
  • Limited to businesses with strong financial performance
  • Requires a personal guarantee
Apply to Amex

5. BlueVine – Best for Flexible Lines of Credit

BlueVine is an online lender that offers flexible lines of credit and invoice factoring solutions to small and medium-sized businesses. With fast approvals, competitive rates, and the ability to draw funds only when needed, BlueVine’s lines of credit provide businesses with the financial flexibility they need to manage cash flow and seize growth opportunities.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 6.2%

Minimum Credit Score: 625

Pros
  • Fast approval and funding
  • No prepayment penalties
  • Only pay interest on the funds you use
Cons
  • Not available for some industries
  • Requires a lien on business assets
  • Higher APRs for those with lower credit scores
  • Unavailable to businesses in North and South Dakota, Puerto Rico, and other U.S. territories
Apply to BlueVine

6. National Funding – Best for Small to Mid-Sized Businesses

National Funding is a trusted alternative lender that offers a variety of loan products, including working capital loans, equipment financing, and merchant cash advances, designed to meet the unique needs of small to mid-sized businesses. With flexible terms, high approval rates, and a quick application process, National Funding is a reliable financing partner for businesses seeking tailored funding solutions.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 600 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10%-buy rates

Minimum Credit Score: 600

Pros
  • Flexible loan terms and repayment options
  • High approval rates
  • Quick application process
Cons
  • Not transparent about APRs
  • Requires a personal guarantee
  • Not ideal for startups or businesses with low revenue
Apply to National Funding

7. Fundbox – Best for Small to Mid-Sized Businesses

Fundbox is an innovative financial technology company that provides lines of credit and invoice financing solutions to small and medium-sized businesses. With a fast and straightforward application process, transparent pricing, and flexible repayment options, Fundbox helps businesses manage cash flow challenges and unlock growth opportunities.

Eligibility Criteria

  1. At least two months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 600 or higher

Loan Amounts: $1,000 – $150,000

APR: Start at 4.66%

Minimum Credit Score: 600

Pros
  • Fast funding, often within 24 hours
  • No prepayment penalties
  • Transparent pricing and fees
Cons
  • Short loan terms (up to 12 months)
  • Requires weekly repayments
  • Not suitable for startups or businesses with low revenue
Apply to Fund Box

8. TD Bank – Best for Healthcare Professionals

TD Bank offers specialized financing solutions designed exclusively for licensed healthcare professionals, including dentists, veterinarians, and physicians. With flexible repayment terms, relationship-based pricing, and a deep understanding of the healthcare industry, TD Bank is a trusted financing partner for healthcare practices seeking to grow, expand, or modernize their operations.

Eligibility Criteria

  1. Licensed healthcare professionals
  2. Good personal credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $5,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 660; good credit history is required

Pros
  • Specialized financing options for healthcare professionals
  • Flexible repayment terms
  • Relationship-based pricing for existing customers
Cons
  • Limited to healthcare professionals
  • Requires a personal guarantee
  • Not transparent about APRs and fees
  • Only located in 16 states
Apply to TD Bank

9. Funding Circle – Best for Established Business

Funding Circle is a leading online lender that offers affordable and transparent term loans to established small businesses. With competitive interest rates, longer loan terms, and no prepayment penalties, Funding Circle provides businesses the capital they need to invest in long-term growth opportunities and strengthen their financial position.

Eligibility Criteria

  1. At least two years in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 660 or higher

Loan Amounts: $25,000 – $500,000

APR: 7.49% to 24.99%

Minimum Credit Score: 660

Pros
  • Competitive interest rates
  • Longer loan terms (up to 5 years)
  • No prepayment penalties
Cons
  • Requires a lien on business assets
  • Not ideal for businesses with low revenue or credit scores
  • Longer application process compared to other lenders
Apply to Funding Circle

10. Biz2Credit – Best for Loan Options

Biz2Credit is a small business financing platform that connects borrowers with a wide range of loan options from an extensive network of lenders. With a personalized approach to loan recommendations and various loan products, Biz2Credit helps businesses find the right financing solution to meet their unique needs and financial goals.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 575 or higher

Loan Amounts: $25,000 – $6,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 575

Pros
  • Wide range of loan options
  • Access to a network of lenders
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees
Apply to Biz2Credit

FAQs

What are the best small business banks in Texas?
Some of the best small business banks in Texas include Wells Fargo, Chase Bank, Bank of America, and MariCorp US.
Does Texas have any specific small business banking services?
Yes, Texas has several state-level small business banking initiatives. These include the Texas Enterprise Fund, the Texas Workforce Commission, and the Texas Economic Development Corporation.
Can small businesses get loans more easily in Texas?
Texas has a strong economy and several programs designed to help small businesses grow, which can make it easier for them to access loans.
Are small business loans different in Texas than other states?
Small business loans in Texas can be different from those in other states due to differences in state-level regulations and incentives.
What kind of incentive programs does Texas offer for small businesses?
Texas offers several programs to incentivize small business growth, including the Texas Bootstrap Loan Program, Texas Business Incentive Programs, and the Economic Development Bank for small businesses.
Are credit unions an option for small businesses in Texas?
Yes, credit unions may be a good option for small businesses in Texas. Some of the best credit unions for small businesses in Texas include A+ Federal Credit Union and Amplify Credit Union.
Are there any small business banks in Texas that don’t require a personal guarantee?
It’s difficult to find a small business bank in Texas that doesn’t require a personal guarantee, as most banks see this as a safeguard against default. However, some local credit unions may be more lenient in this regard.
Is it difficult for small businesses based in rural areas of Texas to access financing?
Access to financing for small businesses in rural areas of Texas may be more difficult due to the limited number of banks and financial institutions operating in those areas.
Are there any specialized banks in Texas that cater to certain industries or business types?
Yes, some of the best small business banks in Texas are specialized and cater to particular industries or niches. For example, THMED Group Bank specializes in healthcare financing and Bank of San Antonio primarily serves the real estate industry.
What should small businesses in Texas consider when choosing a bank?
Small businesses in Texas should consider the bank’s reputation, interest rates, fees, accessibility, and any specialized services or programs they may offer.
What kind of fees do banks in Texas charge for small businesses?
Fees vary by bank, but small businesses in Texas may face fees for transactions, wire transfers, overdrafts, and monthly maintenance fees.
What is the Texas Economic Development Corporation?
The Texas Economic Development Corporation is a public-private partnership that offers business incentives, expansion assistance, and marketing services to help businesses create jobs and generate economic growth in Texas.
Can sole proprietors in Texas apply for small business loans?
Yes, sole proprietors in Texas can apply for small business loans. However, they may have a more difficult time accessing financing due to the lack of separation between personal and business finances.
How do I open a small business bank account in Texas?
To open a small business bank account in Texas, you’ll typically need to provide your business’s legal name, employer identification number, personal identification, and proof of banking history if applicable.
Are there any startup assistance programs for small businesses in Texas?
Yes, there are several startup assistance programs available for small businesses in Texas. These include the Texas Entrepreneurship Network, the Small Business Development Center, and the Texas Innovation Center.
Can small businesses in Texas use online banking services?
Yes, many small business banks in Texas offer online banking services that allow businesses to manage their accounts from anywhere with an internet connection.
What kind of security measures do small business banks in Texas use?
Small business banks in Texas use various security measures to protect their clients’ financial information, including encryption, firewalls, and multi-factor authentication.
Are there any federal-level programs available for small businesses in Texas?
Yes, the Small Business Administration (SBA) offers a wide range of programs and services to help small businesses in Texas access capital, federal contracts, counseling, and more.
What is the Texas Bootstrap Loan Program?
The Texas Bootstrap Loan program is a financing program aimed at helping small businesses located in rural communities in Texas. This program focuses on small business startups or expansions.
Are there any grants available for small businesses in Texas?
Yes, there are several grants available for small businesses in Texas. These grants include the Texas Workforce Commission Innovation Grant, Texas Young Entrepreneur Grant and the Texas Rural Communities Grant.
What is the Texas Business Incentive Programs?
Texas Business Incentive Programs are created and supported by the Texas Economic Development Corporation. It offers various programs and incentives like infrastructure development grants, R&D tax incentives for targeted industries, and sales tax refunds for renewable developers.
What is the Economic Development Bank?
the Economic Development Bank offers loans to eligible small businesses in Texas. The team helps borrowers access capital, provide financing directly, and also underwrites or guarantees bank loans for entrepreneurs.
How quick can small business loans be dispersed in Texas?
The time it takes to disburse small business loans can vary by lender and type of loan, but it can take between one to three weeks and could take longer for bigger loans.
What is the importance of personal relationships when selecting a small business bank in Texas?
Personal relationships can be valuable in the selection process for small business banking in Texas because small banks run more regionally, it might be easier to develop relationships with individual bank personnel for future needs that may arise.
How can I make sure my banking info/transactions are secure when I use online banking?
You can safeguard your bank account from fraudulent activities by using strong passwords, anti-virus software, avoiding public Wi-Fi networks, and monitoring your account regularly.
What advantages can home-grown banks in Texas offer small businesses?
Home-grown banks in Texas have a more definitive understanding of Texas’ economy, customization products which they might sell to businesses at a small startup loan that can kick-start the growth of these small businesses.
What is the Texas Corporate Bank Program?
The Texas Corporate Bank Account program recognized locally, regionally, nationally and internationally entities for their business operations and notable financial policies.
Can international small businesses also take advantage of Texas’s small business loan program?
Yes, it’s available for all legally authorized businesses that meet the federal legal criterias, not necessarily restricted to Texas residents only.
What is the minimum deposit required to open a business account in banks in Texas?
The minimum deposit requirements for business accounts in banks in Texas may vary. However, it is generally recommended to have at least $1000 to open a business account.
Which banks offer free business checking accounts in Texas?
Some banks that offer free business checking accounts in Texas include Capital One, Chase, and BBVA.
What are the fees associated with starting a small business bank account in Texas?
Fees for starting a small business bank account in Texas may vary depending on the bank. However, there are generally fees associated with ATM withdrawals, wire transfers, and other transactions.
Can non-US residents start a business account in Texas-based banks?
Yes, non-US residents can start a business account in Texas-based banks, but they need to provide valid identification, such as a passport and proof of legal residency or citizenship.
What are the online banking options offered by Texas-based banks?
Texas-based banks offer online banking options that include online account management, bill payments, balance transfers, and other financial services.
Which Texas-based bank offers the best interest rates on business savings accounts?
Frost Bank and Texas Capital Bank offer some of the highest interest rates on business savings accounts in Texas.
What is the process of opening a business account with a Texas-based bank?
The process of opening a business account with a Texas-based bank typically involves providing documents such as business registration papers, identification documents, and forms of payment.
Are there any incentives provided by Texas-based banks for small businesses?
Some Texas-based banks offer incentives such as low-interest loans, fee waivers, and lower interest rates on credit lines for small businesses.
Can I apply for a loan for my small business with Texas-based banks?
Yes, most Texas-based banks offer small business loans and credit lines to help businesses get started or expand their operations.
How long does it take to process a small business loan application with a Texas-based bank?
The time it takes to process a small business loan application with a Texas-based bank can vary, but generally takes anywhere from a few days to several weeks.
What is the typical collateral requirement for applying for a small business loan with Texas-based banks?
The collateral requirement can vary depending on the size of the loan and the bank’s lending policy, but registered security such as property and land are some of the most frequently requested collateral requirements.
Which Texas-based bank best serves sole proprietors?
Consider Wells Fargo as one of the best banks in Texas to serve sole proprietors.
What are the online features available in small business banking with wells fargo?
Wells Fargo provides online banking, mobile banking, and business banking service.
How can my small business access financing from BB&T bank?
You can access financing from BB&T Bank by reviewing their small business options currently available on their website.
Can you apply and be approved for an SBA loan from a Texas-based bank?
Yes, Texas-based banks can act as intermediaries for Small Business Association(SBA) loans and some banks specialize in this type of loan and have special rates.
Which bank offers the most business services in Texas?
It varies but Texas Capital Bank, Wells Fargo, and Capital One offer comprehensive financial services to businesses in Texas.
Are loan applications handled quickly with Texas Capital Bank?
Yes, most loan applications, particularly for small-business customers, can be conducted in under an hour.
Are there minimum balance requirements for small business bank accounts at Frost Bank?
Yes, there are because they focus more on Business Savers who want to start with a small amount.
Can I use my personal bank account as a business account for my small business in Texas?
Yes, you can use a personal bank account as a makeshift business bank account if you do not have a commercial account.
Where can I easily find current and relevant information about feasible payment processing services for my small business if I am in Texas?
Ripoffreport.com, bestcompaniesinknow.com provides the most current information and information on any neighboring cities and states toward.
Where does Texas’s oldest bank, Frost Bank operate?
Sites like Frost Bank have expanded and are now larger than their earlier counterpart on East Commerce Street in San Antonio.
Which Texas-based bank imposes strict internet use policies for employees in small-business accounts?
Different banks have their policies, but the more popular Wilson Bank and MidFirst Bank have strict internet use policies.
What are the legal documents and tax IDs necessary to open a bank account for my small business in Texas?
Basic requirements when opening a bank account for Texas-based businesses include your personal identification, such as driver’s license or passport, and any state licenses and tax documents.
Which bank provides credit approvals immediately for business owners in Texas?
Bank of America results in immediate/small business credit information approvals in most paperwork necessary for applications done using texas-based providers.
What is the support network to help small businesses with banking in texas?
LocalIncentives by DTM.com, provides legal services and consulting, credit repair, PPP support, and 24/7 advice for a Texas-based small enterprise bank account providers.
Is there mobile banking available for businesses?
Mobile banking support is available for small-business account owners by all Texas-based banks. Necessary credit and account balances would need a login.
Can I get a business loan/Business Working Capital using BBVA’s Express Loan?
Yes, they provide small You can receive up to $100,000 of small dollar Business Working Capital products, similar to their Express Loan. The Cadi program also accepts input loans if there’s good credit.

Also Read

Conclusion

As Texas, also known as The Lone Star State continues to foster a vibrant entrepreneurial ecosystem, having access to the right financial partners and resources will be crucial in navigating this thrilling ride. By exploring various small business loan options and staying attuned to the ever-evolving financing landscape, entrepreneurs can achieve their dreams and contribute to the ongoing prosperity of the Texas economy.

When looking for the best small business loans in Texas, it’s essential to consider your unique needs and financial situation. Whether you’re forming a Texas LLC or growing your existing LLC in Texas, each of these lenders offers something different to help you achieve your goals. Be sure to compare loan options, eligibility criteria, APRs, and repayment terms to find the right fit for your business. Visit LLCBase for more information about starting an LLC in Texas.

Leave a Comment