What Is an SBA Loan?
An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration. Because the government backs a portion of the loan — typically 75 to 85 percent — lenders can offer lower rates, longer terms, and higher loan amounts than conventional business loans. The SBA does not lend money directly; it works through approved banks, credit unions, and non-bank lenders.
For Texas business owners, SBA loans are one of the most powerful financing tools available — whether you’re buying commercial real estate, expanding operations, purchasing equipment, or acquiring another business.
SBA 7(a) Loans: The Most Flexible Option
The SBA 7(a) loan is the most common SBA program and the most flexible. It can be used for almost any legitimate business purpose:
- Commercial real estate purchase or refinance
- Business acquisition
- Equipment and machinery
- Working capital and inventory
- Debt consolidation
- Leasehold improvements
Key terms:
- Loan amounts up to $5,000,000
- Real estate terms up to 25 years
- Equipment terms up to 10 years
- Working capital terms up to 10 years
- Rates: prime + 2.75% to 4.75% (variable)
- Down payment: typically 10 to 20%
SBA 504 Loans: Best for Commercial Real Estate
The SBA 504 loan is specifically designed for owner-occupied commercial real estate and major equipment purchases. It’s structured as two loans: a conventional bank loan covering 50%, an SBA-backed loan covering 40%, and the borrower putting in 10% down.
This structure means you can acquire commercial property in Texas with just 10% down — and lock in a fixed rate on the SBA portion for 10, 20, or 25 years.
- Loan amounts: up to $5,500,000 on the SBA portion
- Fixed rate on SBA debenture
- 10% borrower injection (15% for startups or special-use properties)
- Must be owner-occupied (51% or more)
SBA Loan Requirements for Texas Businesses
To qualify for an SBA loan in Texas, your business generally needs to meet these criteria:
- Size: Must qualify as a small business under SBA size standards (varies by industry)
- For-profit: Non-profits do not qualify
- U.S.-based: Business must operate in the United States
- Credit: Personal credit score typically 650+ (some lenders go lower)
- Time in business: At least 2 years preferred; startups can qualify under certain programs
- Ability to repay: Business must demonstrate cash flow to service the debt
- No delinquencies: Must not be delinquent on any government debt
How Long Does an SBA Loan Take?
SBA loans take longer than hard money or conventional loans. Here’s a realistic timeline:
- SBA Express (up to $500K): 30 to 45 days
- Standard 7(a): 60 to 90 days
- SBA 504: 60 to 90 days
If speed is critical, a hard money bridge loan can hold your deal while your SBA loan processes. Many Texas investors use this strategy to win competitive deals and then refinance into long-term SBA financing.
SBA Loans vs. Conventional Commercial Loans
Not sure which is right for your situation? Here’s a quick comparison:
- SBA 7(a): Lower down payment, longer terms, more flexible use — best for businesses that need maximum leverage
- Conventional commercial mortgage: Faster close, less paperwork, better for strong borrowers with 30%+ down — see our commercial mortgage options
- Stated income commercial loan: No tax returns required — best for self-employed borrowers who can’t document income traditionally — see our stated income program
Apply for an SBA Loan in Texas
We work with Texas business owners to structure and place SBA 7(a) and 504 loans. We know which lenders move fast, which ones are flexible on credit, and how to get your deal to the closing table without months of back-and-forth.
Submit your deal and we’ll tell you within 24 hours which program fits and what you can expect.
Apply Now — SBA Loan Pre-Qualification in 60 Seconds