An SBA Loan Texas Businesses Should Consider for Capital Assets

August 2, 2023

Is your business missing out on great growth opportunities and larger clients because of small-scale machinery or inefficient equipment? Financing solutions can help your company secure the funds for new capital assets needed to elevate your business to the next level.

Small business loans backed by the Small Business Administration (SBA) help companies across Texas gain access to long-term, fixed-rate financing for capital assets and other vital needs. If your company is interested in an SBA loan, Texas Gulf Bank is a preferred lender that is ready to support your business growth.

Discover why your business should consider an SBA loan, the benefits of this lending option, and the available resources for an SBA loan Texas businesses need.

Why Choose SBA Loans?

The SBA is a federal agency dedicated to supporting the growth of small businesses across the country by providing access to loans and financing solutions. Because the federal government guarantees SBA loans, there is less risk for participating lenders in providing funds to growing companies.

Businesses gain access to reliable, strategic funding that allows them to grow their company, while lenders have the opportunity to invest back into their local community by supporting small business owners.

SBA Loans Offer Significant Benefits

Significant benefits that make SBA loans a popular option for new or growing companies include advantages such as longer terms, longer amortization, and lower equity requirements compared to typical conventional commercial loans. These loans can be a vital source of funding for new businesses or those that face seasonal revenue fluctuations.

Secure Capital Assets with SBA 504 Loans

The SBA offers two primary types of loan options for small businesses, the SBA 7(a) loan and SBA 504 loan. Although both loans support small business growth, there are separate guidelines for how these loans may be used.

SBA 7(a) loans are intended to be used for short-term and long-term business needs, including purchasing or expanding a business, buying commercial real estate, inventory purchases, refinancing business debts, or working capital needs.

For small businesses in need of large-scale fixed assets like equipment or machinery, SBA 504 loans are the ideal choice for businesses with long-term financing needs.

The Value of an SBA 504 Loan to Support Capital Assets

SBA 504 loans are a popular choice because of the flexibility they offer in how approved funds can be used. SBA 504 loans can be used for business expenses and purchases, including:

Lot purchase
Building construction
Facility expansion or renovation
Land improvements (roads, drainage)
Heavy machinery
Long-term equipment

Eligibility for SBA 504 loans is not limited to a small group of industries. This type of financing can be used by a wide range of industries, including special-purpose type of properties such as:

Car washes
Preschools
Restaurants
Self-storage facilities
Hotels

With the help of SBA 504 loans, you can transform the future of your small business while also providing needed job opportunities to stakeholders in your local community.

SBA Loans Texas: Partner With Us to Grow Your Business

Supporting Texas small businesses is a priority for Texas Gulf Bank, a leading provider of lending solutions throughout the Southeast Texas Gulf Coast region for over 110 years.

As an SBA lender, we have extensive experience in guiding businesses through the loan process. Specifically, our dedicated SBA loan specialist Dennis David is ready to help you get started.

The SBA loan process begins with an initial assessment to determine if your business is eligible for SBA financing. We will review whether your business meets the three basic SBA loan requirements:

Business Size: SBA loans are only eligible for “small businesses” as defined by the federal government. Requirements vary by industry and/or net worth and net income. For a complete list of size requirements by industry, consult the SBA eligibility requirements on the SBA website.

Business Type: Most business types are eligible, but they must be owner-operated, for-profit entities located in the U.S. Certain types of businesses are not eligible for SBA loans, such as investment, lending, speculative, and gambling-related companies.

Financial and Business History: SBA loan applicants must meet minimum financial and background standards such as equity in the business or project, personal and business credit, criminal history, historical and/or projected revenues, net income, cash flow, and education and/or work experience.

If your business qualifies to apply, Dennis David can assist with the SBA loan application process, guiding you through each application phase. Contact us today to begin your journey towards an SBA loan Texas Gulf Bank can help facilitate.

All Loans Subject to Credit Approval