Small Business Loans Texas Companies Can Use to Grow

March 27, 2024

When you launched your small business, success may have come in small steps as you promoted your products or services to build your customer base. Now, your business may be maturing. You’re on the cusp of winning exciting new projects or larger clients. However, working capital constraints may keep you from taking the leaps that your business deserves.Small business loans can be a vital lifeline to help you realize the growth opportunities ahead. Explore what may be some of the most effective small business loans Texas companies can choose from to fuel long-term growth. Also, learn why Texas Gulf Bank is the partner your business needs.

Spark Growth with These Small Business Loan Options

Your small business may offer innovative products and outstanding services, but are you struggling to market your business to your target audience or keep up with growing customer demands?

Each of the following small business loans may be able to provide the funding you need to invest back into your business on the path to long-term growth.

SBA Loans

The Small Business Administration (SBA) is a federal agency that supports small business growth by guaranteeing a certain percentage of the business loan amount to qualifying businesses.

Businesses interested in SBA loans can choose from two loan options: the SBA 7(a) loan and the SBA 504 loan.

SBA 7(a) loan

The SBA 7(a) loan is a popular loan choice because it may be used for a wide variety of business expenses. Businesses can use SBA 7(a) funds for many day-to-day operating costs and purchases, such as:

Purchase a building for your business
Purchasing tools, equipment, and machinery
Inventory purchases
Buying furniture, fixtures, and appliances
Recruiting and hiring additional staff
Renovating existing commercial property
Refinancing current business debts

SBA 504 loans

For companies pursuing more significant projects or real estate purchases, the SBA 504 loan may be the better financing option. SBA 504 loans provide financing solutions for small businesses needing major fixed assets such as commercial real estate or heavy equipment.

SBA 504 loans are designed to spur business growth and job creation by providing access to typically low-rate government-backed loans in conjunction with CDCs, which are Community Development Corporations. Small businesses can use SBA 504 funds for major investments and purchases, including:

Commercial land and building (owner-occupied) purchases
Facility construction
Building upgrades or renovation
Heavy equipment or machinery purchases
Debt refinancing

Commercial Real Estate Loans

Small business owners who want to expand their business and grow into new markets can also benefit from a commercial real estate loan – either owner-occupied or non-owner-occupied properties.

Commercial real estate loans may provide your business the required funding to secure land, cover construction costs, or acquire an established business property.

With commercial real estate loans, your business can have the financial resources needed to open a new location while potentially freeing up working capital for your daily operating expenses.

Working Capital Loans or Lines of Credit

Your business may already have the land and facilities needed for growth. Now, you may need a commercial loan to improve your overall cash flow during seasonal gaps in revenue or to hire extra staff during busy seasons.

A working capital loan or line of credit can be beneficial in helping bridge the gap while your business waits for Accounts Receivable payments to be remitted and processed. This financing option may be used to cover key expenses such as:

Rent
Employee payroll
Business taxes
Inventory costs
Utility and debt payments

For small businesses that need help covering costs and expenses on an as-needed basis, a working capital line of credit may be a great option.

Let’s Discuss Small Business Loans Texas Companies Should Consider

Small businesses are the heart of our thriving Texas economy, and there are times when small business owners need a financial boost to support growth initiatives.

Texas Gulf Bank has over 110 years of experience providing strategic banking services and financing options to businesses throughout the Southeast Texas Gulf Coast Region. We understand the unique aspects of SBA loans, commercial real estate loans, and working capital loans to provide a custom lending solution for your business.If your business is ready for growth, get in touch with us today to talk about the small business loans Texas companies should consider. Schedule a consultation with a commercial loan officer by visiting our Texas Gulf Bank locations or contacting us via e-mail or telephone.

All loans subject to credit approval.