Texas Small Business Grants & Loans 2025: Best Funding Programs
Texas Small Business Grants & Loans 2025: Best Funding Programs
Texas has one of the most business-friendly environments in the country — low taxes, minimal regulation, and a growing economy. It also has a robust network of small business funding programs, from federal SBA loans to state economic development grants and local programs run by cities like Houston, Dallas, and Austin.
Here's your complete guide to small business funding in Texas for 2025.
Federal SBA Loans for Texas Businesses
Every Texas small business owner should be familiar with the SBA loan programs. These federally backed loans offer better terms than conventional financing and are available through hundreds of approved lenders across the state.
SBA 7(a) Loans in Texas
The SBA 7(a) is the most popular business loan in the U.S. Texas businesses can borrow up to $5 million for working capital, equipment, commercial real estate, business acquisition, or debt refinancing. Most lenders require a minimum credit score of 640 and at least two years in business.
Texas has a large network of SBA-preferred lenders, including Frost Bank, Broadway Bank, and Comerica, which can process loans faster using their preferred lender status.
SBA Microloans
Texas entrepreneurs who need $50,000 or less should look at SBA Microloans. These are issued through nonprofit intermediaries with more flexible requirements than bank loans. Texas intermediaries include PeopleFund, LiftFund, and BCL of Texas — organizations specifically focused on underserved and low-income Texas business owners.
USDA Business & Industry Loans
For businesses in rural Texas, the USDA Business & Industry (B&I) Loan Guarantee program can fund up to $25 million for eligible rural businesses. Texas has substantial rural territory, and many counties qualify for USDA rural programs. Contact the Texas USDA Rural Development office for eligibility maps and lender information.
Texas State Programs
Texas Enterprise Fund (TEF)
The Texas Enterprise Fund is a deal-closing incentive tool used by the Governor's Office to attract businesses to Texas and help existing Texas businesses expand. Grants are performance-based — tied to job creation and capital investment — and are typically available to larger companies. However, it's worth knowing if you plan to expand significantly.
Texas Small Business Credit Initiative (TSBCI)
Texas received federal funds through the State Small Business Credit Initiative to support small business lending. These funds are channeled through community lenders and help businesses that might not qualify for conventional bank loans. Contact the Texas Economic Development & Tourism Office for current participating lenders.
Texas SBDC Network
The Texas SBDC Network includes over 60 centers statewide, offering free advising, workshops, and help accessing capital. They can review your loan application, help you develop financial projections, and connect you with the right funding programs. Find your center at sbdctexas.org.
City-Level Programs in Texas
Houston
Houston has several small business support programs through the Mayor's Office of Business Opportunity, including the Hire Houston First program for minority and women-owned businesses. The Houston Small Business Development Center also offers capital access programs.
Dallas
Dallas has the Business Incentive Programs through the Dallas Office of Economic Development, and the Dallas SBDC (part of the University of Texas at Dallas) provides extensive business advising services. The Greater Dallas Chamber also connects businesses with local funding resources.
Austin
Austin's Small Business Program (through the Austin Economic Development Department) offers support for businesses in key corridors. Austin has also had specific COVID recovery grants and neighborhood economic development funds — check with Austin Business for current active programs.
Private and Nonprofit Grants in Texas
LiftFund
LiftFund is one of the largest microlenders in Texas, providing loans from $500 to $1 million for businesses that can't access traditional financing. They focus on underserved communities and offer free business training alongside their lending.
PeopleFund
PeopleFund provides loans and business support to Texas small businesses and entrepreneurs, with a focus on women, minorities, and low-income entrepreneurs. Loans range from $1,000 to $350,000.
Texas Women's University Center for Women Entrepreneurs
This center offers resources, mentorship, and grant connections specifically for women-owned businesses in Texas.
Industry-Specific Programs
- Agriculture: Texas Farm Bureau resources, USDA FSA loans, Texas Department of Agriculture grants
- Energy: Texas Renewable Energy Industry grants and incentives for businesses in the energy sector
- Technology: SBIR/STTR grants for Texas tech companies doing R&D
- Construction: SBA 7(a) and 504 loans are commonly used for Texas construction businesses
How to Check Your Eligibility
Before applying to multiple programs, use our free eligibility checker to get a personalized match of loans and grants based on your Texas business profile. It takes under 2 minutes.
Key Takeaways
- Texas has a wide network of SBA-approved lenders for 7(a), Microloan, and 504 programs
- LiftFund and PeopleFund are major Texas-specific lenders focused on underserved businesses
- Rural Texas businesses have strong USDA loan guarantee options
- The Texas SBDC Network (60+ centers) provides free advising statewide
- Houston, Dallas, and Austin all have city-level business incentive programs
Frequently Asked Questions
Does Texas have small business grants (not loans)?
Texas has limited direct grant programs for small businesses compared to some states. Most "grant" programs are performance-based economic development incentives for larger expansions. However, federal grants (SBIR/STTR, USDA), private foundation grants, and city-level economic development grants are available to qualifying businesses.
Can a startup get a business loan in Texas?
Yes. SBA Microloans, LiftFund, and PeopleFund all work with startups and businesses with less than 2 years of history. Kiva zero-interest loans are also available to Texas entrepreneurs. Use our eligibility checker to find startup-friendly programs.
What is the easiest small business loan to get in Texas?
Generally, microloans from community lenders like LiftFund and PeopleFund have more flexible requirements than bank loans. Kiva loans have no credit check. For slightly more established businesses, SBA Express loans provide faster decisions (within 36 hours).
Check Your Eligibility
Use our free eligibility checker to find which Texas-accessible loans and grants match your business profile right now.
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