Texas is one of the best states for entrepreneurs seeking SBA loans thanks to its thriving economy, pro-business policies, and strong network of lenders. With no state income tax, a low cost of living, and access to major markets in Dallas, Houston, Austin, and San Antonio, Texas provides an ideal environment for small business growth. Whether you’re launching a startup or expanding an existing company, Texas SBA loans offer competitive rates, long repayment terms, and lower down payments—making it easier for business owners to access affordable financing and scale faster in today’s competitive market.
Comparing Types of SBA Loans in Texas
The SBA offers three main loan programs to support small businesses in Texas: the SBA 504 Loan, the SBA 7(a) Loan, and the SBA Express Loan. The 504 loan is designed for long-term, fixed-rate financing of major assets like real estate or equipment and involves both a bank and a Certified Development Company (CDC). The 7(a) loan is a more general purpose program covering a wide range of needs such as working capital, business acquisitions, real estate, or equipment, with terms and rates negotiated between the borrower and lender but backed by the SBA. The Express loan, a subset of 7(a), provides faster approvals (often within 36 hours) for smaller amounts—up to $500,000—making it ideal for businesses that need quick access to working capital or short-term financing. Together, these programs give small businesses options tailored to growth, expansion, or immediate funding needs.
Texas Small Business Market for SBA 504 Loans
At Access Private Capital, we specialize in helping Texas small businesses successfully navigate the complex process of securing and closing an SBA 504 loan. Our team of experts understands the unique requirements of SBA 504 financing in Texas, from structuring the deal to coordinating with lenders and Certified Development Companies (CDCs). We guide business owners step by step—ensuring deadlines are met, paperwork is accurate, and the loan is optimized for long-term growth. Whether you’re purchasing commercial real estate, expanding facilities, or investing in major equipment, we make the SBA 504 process smooth, efficient, and tailored to your business goals. If you’re looking for trusted guidance on Texas SBA 504 loans, we’re here to help you close with confidence.
Top States for SBA 504 Loans: Texas ranks 3rd
| States | Gross Third Party Loans |
|---|---|
| CA | $2,075,551,834 |
| FL | $1,013,468,842 |
| TX | $726,682,540 |
| IL | $393,516,434 |
| GA | $388,668,950 |
| NY | $325,736,349 |
| AZ | $266,835,162 |
| WI | $261,047,777 |
| UT | $240,480,881 |
| MA | $238,793,407 |
| CO | $221,167,377 |
| MN | $218,836,503 |
| NJ | $192,167,180 |
| WA | $189,108,840 |
| OH | $180,206,202 |
| MI | $173,976,127 |
| IN | $165,798,588 |
| NC | $161,853,345 |
| NV | $140,535,855 |
| VA | $115,062,057 |
Texas CDCs ranked by loan approvals
In a Texas SBA 504 loan, a Certified Development Company (CDC) partners with the SBA and a private lender to provide affordable, long-term financing for major assets like real estate and equipment. The CDC handles the SBA-backed portion of the loan—typically 40%—while a bank funds about 50% and the borrower contributes 10%. In Texas, CDCs guide small businesses through the application process, secure SBA approval, and ensure the financing structure meets all program requirements.
| Texas CDCs | # of 504 loans |
|---|---|
| Capital Certified Development | 109 |
| LiftFund, Inc. | 54 |
| North Texas Certified Developm | 38 |
| Greater East Texas Certified D | 24 |
| Texas Certified Development Co | 18 |
| Community Certified Developmen | 12 |
| Lone Star State Capital Corpor | 10 |
| Alliance Lending Corporation | 8 |
| Caprock Business Finance Corpo | 8 |
| Brownsville Local Development | 4 |
| PeopleFund | 4 |
| Southeast Texas Economic Devel | 2 |
| Texas Panhandle Regional Devel | 2 |
Top Industries for SBA 504 in Texas
SBA 504 Loans are ideal for owner-occupied commercial real estate. Last year there were almost 300 approved projects in Texas for SBA 504 loans. These loans spanned a wide variety of industries. Below are the top 20 industry categories last year for Texas small business borrowers utilizing SBA 504.
| Top Borrowers by Industry Type | # of 504 loans |
|---|---|
| Hotels (except Casino Hotels) and Motels | 27 |
| Child Day Care Services | 21 |
| Car Washes | 15 |
| Elementary and Secondary Schools | 12 |
| Full-Service Restaurants | 12 |
| Offices of Physicians (except Mental Health Specialists) | 11 |
| Limited-Service Restaurants | 8 |
| Lessors of Miniwarehouses and Self-Storage Units | 7 |
| Fitness and Recreational Sports Centers | 6 |
| Offices of Chiropractors | 5 |
| Child and Youth Services | 5 |
| Snack and Nonalcoholic Beverage Bars | 5 |
| Engineering Services | 5 |
| Sports and Recreation Instruction | 5 |
| Offices of Dentists | 4 |
| Veterinary Services | 4 |
| Plumbing, Heating, and Air-Conditioning Contractors | 4 |
| Automotive Body, Paint, and Interior Repair and Maintenance | 4 |
| All Other Personal Services | 4 |
| Offices of Real Estate Agents and Brokers | 3 |
SBA Loans Texas; current rates and requirements
Current SBA 504 Interest Rates
The best way to evaluate the SBA 504 rate is based on the blended rate between the 1st mortgage rate offered by a private lender/bank and the 2nd mortgage rate offered by the SBA. The blended rate on SBA 504 loans is generally below Wall Street Journal Prime, or WSJ Prime. 7a loans are generally higher than WSJ Prime
1st Lien Loans (generally 50% of project)
SBA 504 rates on 1st Lien loans are generally based off the current 10-year treasury. These loans are funded by a private lender/bank.
- General Purpose Property and/or Strong Credit: 10-year treasury plus 3.75%
- Special Use Property or weaker Credit: 10-year treasury plus 4.50%
2nd Lien Loans (generally 40% of project)
SBA 504 rates on 2nd lien loans are generally based off the current 10-year treasury. These loans are funded by the SBA through the sale of a debenture. These rates are published every month by the SBA and are the same for all borrowers.
- Effective Rates All property types: 10 year treasury plus 2.00%
Blended Rate for SBA 504 (both loans combined)
Calculating the blended rate for the two loans in an SBA 504 transaction allows small business borrowers to better evaluate the attractiveness of an SBA 504 loan compared to other convention and SBA loans. Our SBA 504 calculator will show you your blended rate and payment breakdown for both loans based on the most recently published SBA rates.
- General Purpose Property and/or Strong Credit: 10-year treasury plus 2.75%-3.00%
- Special Use Property or weaker Credit: 10-year treasury plus 3.25%-3.50%
Current SBA 7(a) Interest Rates
SBA 7(a) interest rates vary based on the Wall Street Journal Prime, or WSJ Prime. The typical interest rates for specific loans can be calculated using the interest rate spreads below.
Real Estate Loans (25-Year Terms)
- Special Use Property: WSJ Prime plus 2.75%
- Mixed-Use Property: WSJ Prime plus 2.00%
- Refinance (with no cash out): WSJ Prime plus 1.75%
Non-Real Estate Loans (10-Year Terms)
- Loans under $350,000: WSJ Prime plus 3.50%
- Loans between $350,001 and $5 million: WSJ Prime plus 2.75%
Payment Calculator for Texas SBA Loans
How much will this cost my business?
SBA Loan Requirements for Texas SBA Loans
Check out our guide on the differences between SBA 504 vs 7a
Business Size: Must qualify as a “small business” under SBA size standards (based on revenue or employee count by industry).
For-Profit Business: Nonprofits are not eligible; the company must operate for profit.
U.S. Based: The business must operate in the United States or its territories.
US Citizenship: all beneficial owners of the borrowing entity must be US citizens.
Owner Occupancy: for real estate financing under SBA the business must occupy at least 51% of the square footage of the property being financed.
Public Policy Mandate: 504 projects must either create/retain jobs OR meet another community development goal.
Meet credit elsewhere standard: The SBA requires that the borrower demonstrate that they would not be able to get credit on reasonable terms elsewhere.
Funds must be used for eligible purposes:
504: Eligible use of funds include real estate, equipment, leasehold improvements and some of the costs associated with closing the transaction.
7a: The 7a allows for more flexibility than 504 in eligible uses of funds but often at the cost of higher rates. 7a uses can include real estate, equipment, working capital and business acquisition.
SBA Loans Texas: Where to Start
1. Make sure you are eligible
- Operate a for-profit small business in the U.S. (must meet SBA size standards).
- Have good personal/business credit (typically 650+).
- Owners must be US Citizens
- If financing real estate, the business must occupy at least 51% of the property. Residential, multi-family and/or investment properties do not qualify.
- Make sure you can demonstrate proof of liquidity to meet equity injection (down-payment) requirements
2. Identify Your Loan Type
- SBA 7(a): Best for working capital, business acquisition, or real estate with flexible use.
- SBA 504: Best for commercial real estate and large equipment with fixed rates and longer terms.
- SBA Express: Smaller, faster approvals, but usually higher rates.
3. Get Your Financials in Order
- 2–3 years of business tax returns
- 2-3 years of personal tax returns
- Interim financial statements (P&L, balance sheet).
- Business debt schedule.
- Personal financial statement for all owners with 20%+ ownership.
- Business plan with projections if you are a start-up
- Bank statements or other supporting documents showing proof of liquidity for down payment
4. Find the Right SBA Lender in Texas
- Connect with one of our SBA Loans Texas experts and we can connect you with the right lender and/or CDC to meet you needs and credit situation.
5. Match with a Lender
- For 504 loans, you’ll work with both a private lender/bank (50%) and a CDC (40%).
- For 7(a), the private lender/bank is your direct lender.
6. Provide additional information as needed for underwriting
- Lenders and CDCs will usually send a checklist of information required to underwrite the loan for SBA approval. Keep the process moving by providing information promptly.
- Lenders will order 3rd party reports such as appraisals, environmental reports and surveys as needed
8. Close and Fund
- Work with your lender, CDC, sellers and attorney (if you have one representing you) to complete loan closing checklist(s)
- Understand your covenants (reporting, insurance, collateral requirements).
- Review closing documents and schedule closing
