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SMALL BUSINESS LOANSYOUR 2019 GUIDE TO LOCAL LENDING1SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
3Introduction4Top Local Lenders for Houston Small Business Loans10Top Traditional Lenders for Your Small Business Loans11Top Government Programs for Houston Small Business Loans12Top Funds and Non-Profit Programs for Houston Small Business Loans14Online Small Business Loan Options15Grants for Houston Small Business Owners16The Bottom LineSMALL BUSINESS LOANSYOUR 2019 GUIDE TO LOCAL LENDING2SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
HAVING ENOUGHCASH FLOW ISCRITICAL TOKEEP YOURBUSINESS UPAND RUNNINGBut it can be a challenge, especially if you're one of the thousands ofnon-tech "mom and pop" style shops that help keep Houston running ona day-to-day basis. Here's the good news there are a ton of lenders whoprovide a variety of small business loans in Houston. All you need is toknow where to look.And, we've done that part for you. In this guide, you'll find a list of the best Houston small businessloan programs, grants, and alternative options for your financial needs.3SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
TOP LOCAL LENDERSFOR HOUSTON SMALLBUSINESS LOANSWhether you're looking to run, grow, or secure your small business, Houstonhas a multitude of options for business funding. Here are a few financialinstitutions, non-profits and government programs for you to look into.Large BankBBVA USAWith over two dozen locations in the greater Houston area, you won't be far from a local office. You'llalso have the option to access funds via check,phone transfer and online accounts too.BBVA USA offers a variety of small business loanoptions, including:Small Business Line of CreditA business line of credit gives the flexibility topurchase equipment, improve short-term cashflow, and cover other needs as they arise. Credit isaccessible when you need it, and you pay intereston the funds you use, similar to a credit card.BBVA offers both secured and unsecured traditionallines of credit. Secured lines start at 10,000 andunsecured at 100,000. They also have an unsecured convenience line of credit available from 10,000 up to 100,000.4SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
Business Term LoansTerm loans tend to be for long-term, predictableneeds. Things like equipment purchases or facility renovations are often choices for term loans.These loans are lump sums that are repaid over apre-determined time frame, plus interest.BBVA offers secured and unsecured business termloans starting at 5,000. Loans are funded at closingand terms run up to five years. For Houston smallbusinesses in the health care industry, interest ratediscounts, and extended loan terms to 10 yearsare available.Commercial Real Estate LoansThese loans are for real estate costs. Projects caninclude everything from expanding a facility tobuying new office space or purchasing equipment.BBVA offers secured installment loans for commercial real estate. Both fixed and variable terms areavailable with terms ranging from 5 to 25 years.There are no balloon payments.For owner-occupied commercial property, BBVA hasa maximum Loan-to-Value (LTV) of 85 percent and70 percent LTV financing on non-owner-occupiedcommercial property.SBA 7(a) Loan: A general purpose loan that's usedfor anything approved by the SBA. BBVA offersloans between 350,000 and 5 million, variableor fixed rate. Terms vary based on the use of theloan, ranging from five years for working capital to25 years for real estate.SBA 504 Loan: This loan is traditionally used forreal estate and equipment purchases. BBVA offers loans from 2 million to 15 million, fixed orvariable rate. The terms range from 10 years forequipment to 20 years for real estate.Conventional Loan: This is another type of generalpurpose loan. Some small business owners turn tothis loan for items that aren't covered by SBA 7(a)loans. The amount available has no limit at fixedor variable rates. The terms vary from one yearfor working capital lines of credit to 20 years forreal estate.Typically there are fees associated with SBA loans,so check on those rates as you investigate youroptions.SBA LoansThe U.S. Small Business Administration (SBA) isa governmental agency that helps small businessowners. One of the ways they do that is throughSBA loan programs.BBVA has three types of SBA loan programs forsmall business owners.5SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
Small Local BankTexas Citizens BankTexas Citizens Bank has six branches operatingin the greater Houston area. This bank is knownfor working closely with Houston small businessowners for business funding and loans.Here's what they offer:Real Estate LoansTCB offers both commercial and investment realestate loans. Examples of uses range from owner-occupied spaces and industrial warehouses toretail shops. TCB has both short term and longterm financing options from the constructionphase onward.Lines of CreditTCB has options for both secured and unsecuredlines of credit.SBA LoansTCB offers both the SBA 7(a) Loan and the 504 loans.For the SBA 7(a) Loan, the credit limit is up to 5million. The terms are up to 25 years for real estateand up to 10 years for other purchases includingequipment or inventory.TCB classifies the SBA 504 as a Fixed Asset Loanfor long-term projects including buildings, renovations, land and equipment. The credit offeredis up to 5 million, and terms are up to 25 yearsfor real estate.Equipment LoansIf you need new equipment to replace outdatedmodels or want to upgrade current machinery, TCBhas equipment loans available.Inventory LoansWant to capitalize on a special bulk wholesale deal?Then an inventory loan might be a solution for you.6SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
Credit UnionMembers Choice Credit UnionMembers Choice is a credit union serving thegreater Houston area focusing on West Houston,Katy and Cy-Fair. There are seven locations formembers to visit in the area.Here's what MCCU has on offer for Houston smallbusiness loans:SBA LoansMCCU offers SBA Loans to members. You canuse the loans for owner-occupied real estate andbusiness acquisitions. The loan amount is up to 5 million with monthly repayment options for upto 25 years. For financing for both real estate andbusiness acquisition, MCCU requires a 10 percentminimum down payment.Business LoansA variety of loans fall under this umbrella. MCCUoffers options primarily focused on helping regainshort-term cash flow.These loans and lines of credit include equipment, commercial real estate, capital and companyacquisition loans.7SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
Government Program Credit UnionHouston-Galveston AreaLocal Development CorporationThe H-GALDC is a division of the Houston-Galveston Area Council (H-GAC), an association oflocal governments in the Gulf Coast region. Localelected officials make up the board of H-GAC.Here's what H-GALDC offers:SBA 504 Loan ProgramFor fixed asset projects, H-GALDC offers fixed rate20 year terms. The loans range from 500,000 to 10 million.Within the SBA 504 Loan Program, H-GALDC alsooffers VetLoan Advantage. This loan helps veteransget financing. H-GALDC offers cash rebates up to 5,000 to help offset loan expenses for veterans.Business Loan FundH-GALDC also has a Business Loan Fund as well.This program offers loans for working capital,construction and real estate. The loans range from 100,000 to 300,000 and have 10 year terms.For every 65,000 in loan funds, recipients needto create one job.8SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
Non-Profit ProgramHouston BusinessDevelopment, Inc.Houston Business Development, Inc. (HBDi) is a501(c)(3) non-profit corporation. Its goal is to workclosely with local Houston small business ownersto provide loans and access to capital.HBDi offers the following Houston small businessloans for established business owners:Small Business LoanThe traditional Small Business Loan ranges from 5,000 to 500,000. It can be used for real estate,working capital, furniture & fixtures, and equipment.Rates are fixed and determined on a case by casebasis with terms up to 25 years.9Fast Track LoanThe Fast Track Loan offered by HBDi is for thosewho need access to capital quickly. This loan has athree business day processing period and a sevenyear term with fixed rates on funds ranging from 5,000 to 25,000.SBA 504 LoanThe SBA 504 Loan is available for equipment, commercial real estate and renovations. HBDi requiresa 10 percent down payment on fixed rate loansup to 5 million.SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
TOP TRADITIONALLENDERS FOR HOUSTONSMALL BUSINESS LOANSHere, you'll find a mix of some of the traditional banks, local and community banks, and credit unions in the greater Houston area that offer smallbusiness loans.1Wells FargoWells Fargo offers business term loans (unsecuredbusiness loan, equipment express loan, advancingterm loan), commercial real estate (purchase, refinance, equity, line of credit), secured and unsecuredlines of credit.2JPMorgan ChaseJPMorgan Chase offers include SBA backed loans,equipment loans, trade finance and commercialreal estate loans.3Wallis BankWallis Bank offers business commercial loans,commercial real estate loans, and SBA loans.4Plains State BankPlains State Bank offers options for lines of credit,commercial real estate loans, equipment loans andagricultural loans.105Spirit of Texas BankSpirit of Texas offers commercial lending optionsand SBA loans.6Allegiance BankAllegiance Bank offers working capital revolvinglines of credit, working capital term loans, equipment financing, commercial and owner-occupiedreal estate loans, and SBA guaranteed loans.7Texas Dow Employees Credit UnionTexas Dow Employees Credit Union offers bothcommercial real estate construction and owner-occupied real estate loans. Plus, equipmentloans, revolving or seasonal line of credit and SBAbacked loans.SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
TOP GOVERNMENTPROGRAMS FORHOUSTON SMALLBUSINESS LOANSFor small business owners looking to the state and Federal government,there are options available. Here are some of the programs for Houstonsmall business loans:1Texas Product Development and SmallBusiness Incubator FundTexas offers two loan programs under this umbrella.The Small Business Incubator Fund offers long-termasset-backed loans for new and existing Texas basedsmall businesses. The Development Fund is aimedat businesses creating new products to be usedfor commercial application. To qualify, businessesmust have 3 years of operating history. The assetbacked loans run from 1 million to 5 million with15-20 year terms.112Texas Capital Access ProgramThe Texas Capital Access Program is a joint programbetween the State of Texas and local nonprofits tohelp small businesses that struggle with access tocapital. Small businesses applying must have 51percent of their employees based in Texas. The loansare for working capital, equipment purchases andconstruction, and purchase or lease of buildings.3Economic Development AdministrationRevolving Loan FundThe Economic Development Administration (EDA)offers a Revolving Loan Fund. This fund helpsstimulate both business and job growth for smallbusinesses in communities around the country.SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
TOP FUNDS ANDNON-PROFIT PROGRAMSFOR HOUSTON SMALLBUSINESS LOANSBanks and government agencies aren't the only places to turn. When it comesto finding small business loans Houston has plenty. Local and statewidefunds and nonprofit programs are also around to help local small businessowners. Here are a few funds and nonprofit programs.1LiftFundLiftFund is a non-profit that focuses on helpingHouston small business owners who have limitedaccess to loans and capital.Small business owners can apply for Small Business Loans up to 1 million and SBA 504 loansfor commercial real estate and equipment needsor to refinance debt.2PeopleFundPeopleFund provides loans to small businessesand nonprofits. The loans can be used for workingcapital, equipment, real estate or revolving linesof credit.Their customized loan program offers up to 350,000and terms up to seven years. PeopleFund also offers12an SBA 504 Loan program for long-term assets.There is a maximum of 5 million for the SBA 504loan and up to 5.5 million for manufacturing.3BCL of TexasBCL of Texas works with disadvantaged small business owners. They offer a Small & Diverse GrowthFund that helps women- and minority-owned businesses. BCL of Texas also has a Business GrowthFund and SBA 504 Loan Program.The Small & Diverse Growth Fund has loans from 5,000 up to 50,000 with a three day decisionturnaround. The Business Growth Fund offersloans between 50,000 and 300,000 for working capital, refinancing, real estate and machinery.The SBA 504 Loan Program goes up to 5.5 millionon a term of 10 to 20 years.SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
4Capital CDCCapital CDC is a nonprofit that operates throughoutTexas and New Mexico. They focus specifically onsmall business financing options.For Houston based small business owners, CapitalCDC has several options that fall under the SBA504 umbrella. These include the traditional SBA 504Loan and a 504 Refinance for Expansion Program.Capital CDC also offers the SBA VetLoan Programfor veteran-owned small businesses. The CommunityAdvantage Loan Program works with SBA 504 orSBA 7(a) lenders in underserved markets.5Central Texas CDCThe CTCDC is a public nonprofit that providesloans through public sector financing programs.They work with area banks, governmental organizations, and local community organizations tohelp stimulate growth.CTCDC offers an SBA 504 Loan Program. Theyalso administer the Economic Development Administration's Revolving Loan Fund.13SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
ONLINE SMALL BUSINESSLOAN OPTIONSEasy access to the internet means there are plenty of online small businessloan options to explore too. In many smaller local areas, traditional banksaren't offering lending options to some small businesses at the rates theyused to.Online lenders, like Kapitus, have jumped into thatspace. Many online options can offer more personalized loan options with the aid of technologyand algorithms. They can often process loan applications more quickly, giving small business ownersan answer within a few hours versus a few days.14Online small business lenders typically offer a combination of term loans, equipment financing andlines of credit. Your qualifications might dependon your business’s revenue, time in operation andcredit scores.SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
GRANTS FOR HOUSTONSMALL BUSINESS OWNERSTo help stimulate the local economy and boost small businesses, severallocal and state organizations offer grants to Houston small business owners.Here are some of the grant programs available:1City of Houston EconomicDevelopment GrantsHouston provides grants to qualifying businessesand nonprofits. Applicants are encouraged to reachout to the Economic Development Division andexplain their project to get the process started.2TEDC Job Creation/Retention GrantThe greater Houston Tomball Economic Development Corporation offers cash grants for projectsthat create or retain jobs.3State of Texas eGrantsThe State of Texas maintains an online database ofall of the grants available within the state.15SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
THEBOTTOMLINEIf you're looking for small business loans, Houston has a lot of optionsavailable. These loans and grants are one place to start. Kapitus is another.Hundreds of other Houston small business owners just like you have received the funding they need from the Kapitus Houston Small BusinessLoans Program.For Houston small business owners who have been in business for one year,have a minimum annual revenue over 100,000 and credit scores above550, you have good baseline qualifications.Ready to get started? Click here to learn more and begin the process.If you want to get more specific advice on which financing options are right for your business, or howto choose a lender for your business financing, call Kapitus at 800-780-7133 to speak with one of ourfinancing specialists or visit our website16SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
About KapitusFounded in 2006 and headquartered in NYC, Kapitus is one of the most reliableand respected names in small business financing. As both a direct lender and amarketplace built with a trusted network of lending partners, Kapitus is able toprovide small businesses the financing they need, when and how it is needed. Withone application business owners can save time and money, while eliminating thestress that comes with applying to different lenders. At Kapitus, we believe thatbusiness owners should be able to focus on running their business, while we takecare of the financing. To learn more, visit www.kapitus.com.17SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
120 West 45th StreetNew York, NY 10036O. 212-354-1400F. 18SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING
7 SMALL BUSINESS LOANS HOUSTON YOUR 2019 GUIDE TO LOCAL LENDING SBA Loans MCCU offers SBA Loans to members. You can use the loans for owner-occupied real estate and business acquisitions. The loan amount is up to 5 million with monthly repayment options for up to 25 years. For financing for both real estate and
