A Texas borrower's guide to SBA loans.
The SBA is one of the most powerful tools available to Texas SMEs. Here is what you need to know about the two most-used programs.
The flexible workhorse
The SBA 7(a) is the most-used SBA program. It funds working capital, equipment, real estate, business acquisitions, partner buy-outs, and debt refinance in a single loan, up to $5 million.
- Loan size: up to $5M
- Term: up to 10 years for working capital, 25 for real estate
- Rate: variable, typically Prime + 2.25% to 4.75%
- Down payment: as low as 10% on acquisitions and CRE
- Guaranty: personal from all 20%+ owners
For real estate and heavy equipment
The 504 program is structured for owner-occupied commercial real estate and large equipment. It combines a bank loan and a Certified Development Company (CDC) loan to deliver long-term, fixed-rate financing with low down payments.
- Project size: typically $250K to $20M+
- Structure: 50% bank, 40% CDC, 10% borrower equity
- CDC portion: fully amortized, fixed rate, 10 to 25 years
- Use: owner-occupied real estate, major equipment, expansion
- Required: business must occupy 51%+ of the property
What to expect on a Texas SBA loan.
- 01
Pre-qualification
We review the deal informally with two or three best-fit SBA lenders, usually within 48 hours.
- 02
Full package
You assemble the SBA application package (tax returns, financials, SBA forms 1919 and 413, business plan if applicable).
- 03
Underwriting
The lender underwrites, orders appraisal and environmental on real estate, and issues a term sheet.
- 04
Close and fund
Loan documents are signed, conditions cleared, and funds disbursed. Total timeline: 45 to 90 days typical.
Thinking about an SBA loan?
We will tell you up front whether your deal is a strong SBA candidate, and what to expect on rate, terms, and timing.
Talk to a TCS advisor