Texas

Business Loans in Texas

Business loans in Texas come from banks, credit unions, SBA lenders and non-bank funders, and a 2025 state law, HB 700, requires written cost disclosures on sales-based financing offers under $1 million. Sagamore, a commercial loan broker, matches established Texas businesses with lenders for lines of credit, term loans, SBA loans, equipment financing and factoring.

Written by Jordan Levy, Founder & CEO · Last updated November 4, 2026

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State law

What does Texas HB 700 require from sales-based funders?

HB 700, signed in June 2025, regulates commercial sales-based financing: funding repaid as a share of your sales or revenue, or by fixed payments that are later reconciled to sales, such as a merchant cash advance. Banks, credit unions and financing secured by real estate are exempt, and fixed-payment term loans and lines of credit fall outside it.

What you should get in writing

The total amount of the financing, and the amount actually disbursed to you
The finance charge and the total repayment amount
The estimated time to repay
Payment amounts and frequency, or the method and an average projected monthly payment when payments vary
Other fees, such as draw, late and returned-payment fees
What paying off early or refinancing costs
Any collateral or security interest required
Whether the provider pays the broker, and how much

What else the law does

You sign the disclosure before the application is finalized.
A funder or broker may not set up automatic debits from your bank account unless it holds a first-priority perfected security interest in that account. The OCCC's rules count recurring pre-authorized debits and prewritten checks as automatic debits.
A confession-of-judgment clause in the contract is void.
The OCCC registers providers and brokers and enforces the law. Providers and brokers already operating must register by December 31, 2026.

At a glance

Law: HB 700 (2025), Texas Finance Code chapter 398
In effect: September 1, 2025; OCCC rules July 9, 2026
Covers: Sales-based financing offers under $1 million
Enforced by: Office of Consumer Credit Commissioner

SBA

Where are the SBA offices in Texas?

The SBA doesn't lend directly. Banks, credit unions and other SBA-approved lenders make 7(a) and 504 loans, and the SBA guarantees part of each one. District offices connect businesses with counseling, training and local lenders.

Texas is split across six SBA districts, so the office that serves you depends on your county.

How SBA loans work

6 locations

EulessDallas / Fort Worth District Office72 counties in northeast Texas
HoustonHouston District Office32 counties in southeast Texas
San AntonioSan Antonio District Office55 counties in south central Texas
LubbockWest Texas District Office71 counties in west Texas
El PasoEl Paso District Office9 counties in far west Texas
HarlingenLower Rio Grande Valley District Office14 counties in south Texas

State programs

What state loan programs does Texas offer?

Texas runs its federal State Small Business Credit Initiative money through the Office of the Governor's Economic Development Finance division, as the Texas Small Business Credit Initiative (TSBCI). The state works through participating financial institutions, so a business reaches these programs by asking its lender whether a loan can be enrolled.

These are state programs. Sagamore doesn't run them or decide who qualifies.

TSBCI Capital Access ProgramOffice of the Governor, Economic Development FinanceThe lender, the borrower and the state pay into a loan loss reserve that protects the lender on enrolled loans of $5,000 to $5 million.
TSBCI Loan Guarantee ProgramOffice of the Governor, Economic Development FinanceGuarantees up to 80 percent of a loan's unpaid principal, on loans of $5,000 to $20 million from participating lenders.
TSBCI Loan Participation ProgramOffice of the Governor, Economic Development FinancePuts state funds into loans made through a community development financial institution (CDFI) direct lending program.

Industries

Which Texas industries do we work with?

Texas has 3.5 million small businesses, 99.8% of all businesses in the state, according to the SBA Office of Advocacy's 2025 profile. We work with established businesses in every industry; these are the ones that stand out in Texas.

Eligibility

What do you need to qualify for a business loan in Texas?

The same as in every other state. Sagamore is a broker, not a lender: one application is matched with lenders across all 50 states, and every program starts from the same minimums. We work with established businesses only, so startups are not eligible.

Credit score: 600+
Time in business: 1+ year
Annual revenue: $400K+

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Frequently Asked Questions

Common questions about business loans in Texas

A written disclosure before you sign, for any sales-based financing offer under $1 million. HB 700 requires the total financed, the amount you actually receive, the finance charge, the total you repay, the payment schedule, other fees, payoff costs and what the funder pays your broker. Banks and credit unions are exempt.

Only if it holds a first-priority perfected security interest in that account. Otherwise HB 700 bars sales-based funders and brokers from setting up automatic debits, and the OCCC's rules treat recurring pre-authorized debits and prewritten checks as automatic.

Yes, through the TSBCI Loan Guarantee Program, which guarantees up to 80 percent of a loan's unpaid principal for participating lenders. You don't apply to the state: ask your lender whether your loan can be enrolled.

The SBA Houston District Office, in Houston, which serves 32 counties in southeast Texas. Texas has six SBA district offices in all: Euless for Dallas and Fort Worth, Houston, San Antonio, Lubbock, El Paso and Harlingen.

Sources

Where do these facts come from?

Each fact on this page was checked against the agency or legislature that publishes it. Programs and offices change, so confirm the details with the source before you rely on them.