Burning Questions, Answered: Texas Small Business Loans
Financial planning is a personal process. Origin Bank is committed to providing resources that address all your concerns–that's why we’ve launched this market-specific series to answer your burning questions.
Throughout this series, we’ll dive into your most-searched financial questions by state. From retirement planning to auto loans, we’ll discuss top-of-mind topics across our markets.
Highly requested by Texas residents, we’re here to demystify microlending, clear-up misconceptions about community banking, and identify ways to secure funding for your small business.
Small business loans for every business
Whether you’re looking for Houston equipment financing for small businesses or an Austin small business line of credit, we’re breaking down small business hacks and giving you the inside scoop on identifying the right loan for you.
- Understand your loan options. From business lines of credit to equipment loans, there are a few key types of small business loans available. Loan terms and qualifications vary, and the “right” loan for you is the one that you qualify for and fits your needs. Term loans, for example, are best for established businesses looking to expand, while business lines of credit are better for short-term financing needs. Equipment loans cover expenses like commercial vehicles and office equipment and are often easier to secure because the equipment serves as collateral. Microloans are best for startups that need funds in small amounts, usually ranging from $500 to $50,000.
- Find grant programs in your area. Operating a small business is hard work, and it can be hard to find the financing you need. In addition to nationally available Small Business Administration resources, you can also explore funding from non-profit lenders. Non-profit lenders offer favorable terms and lower interest rates in addition to mentorships and community workshops. These are a few major non-profit lenders in the state of Texas:
- Explore community bank services. Instead of leaning solely on computer algorithms for decision-making on loans, which can prevent small businesses from being able to secure one, community banks are better able to evaluate soft factors that algorithmic analysis might miss. At community banks, bankers take the time to get to know you and your business, because algorithms alone can’t predict contextual information like how much your business will benefit the community.
- Talk to a lender about your needs. Lending provisions like the Small Business Jobs Act can be tough to unpack, so it helps to connect with a lender to interpret what's available and guide you to the resources best suited to you. Community banks account for over half of small business lending, so when it comes to the success of your business, seeking out these experts can help determine what type of loan best fits your needs.
- Apply for a loan. Of the small business owners who apply for a loan, 76% are approved at community banks. It’s not because community banks have lax standards – it’s because they specialize in building relationships and provide personal service to help walk you through the process. Community banks continue to cultivate each relationship beyond the loan application, meaning you have a helpful, knowledgeable advocate to turn to as your small business grows.
Origin Bank’s business banking team is dedicated to serving the community. No matter how large or small your local business, you can contact our team to learn more about how we can support your business and community.