SBA Loans
Whether you’re launching a new product, funding new growth, acquiring a company or purchasing your office, warehouse, store or equipment, capital is the key to unleashing the power of your business. Our team of lending experts is here to work by your side to determine the right structure for your organization’s needs.
Helping businesses grow
SBA Loans
We're committed to helping grow small businesses into something great. As a Preferred Small Business Administration (SBA) lender, the dedicated SBA team at Texas Capital Bank will work closely and efficiently with you to complete the loan process. Our seasoned bankers have decades of experience in small business lending and are committed to working with you one-on-one to help you reach your goals, no matter how big they may be.
Benefits of an SBA Loan
An SBA 7(a) or 504 Loan provides businesses with access to capital that might not otherwise be available, with more flexible underwriting than conventional business loans.
With an SBA Loan, businesses can benefit from:
- Lower down payment requirements
- Longer repayment terms — up to 25 years
- Lower cash flow requirements to cover payments
- Ability to conserve cash for operating expenses
SBA 7(A) Loan
A SBA 7(A) Loan is used for a variety of business needs. Texas Capital Bank offers loans from $500,000 to $5,000,000. The interest rates for the SBA 7(a) Loans can be variable or a fixed rate. The Loan terms can be 10 to 25 years, depending on the loan purpose. A few examples of loan purposes are expanding or acquiring a business, purchasing or constructing real estate, refinancing existing business debt, buying equipment, providing working capital, financing building improvement, purchasing inventory, and refinancing owner occupied real estate. The loan structure will be up to 90% bank loan and a borrower down payment as low as 10%. To find out more please read our frequently asked questions below.
SBA 504 Loan
A SBA 504 Loan is used for Real Estate and Equipment. The loan size Texas Capital Bank offers range from $2,000,000 to $15,000,000. The interest rates for a SBA 504 Loan can be a variable or a fixed rate. The terms are up to 10 years for machinery or equipment, and up to 25 years for real estate. The loan purpose for a SBA 504 Loan can be purchasing land or an existing building, expanding or improving an existing building, or purchasing long-lived machinery or equipment. Loan structures that Texas Capital Bank offers are 50% bank loan, up to 40% from a Community Development Corporation (CDC) loan, and the borrower down payment as low as 10%. To find out more please read our frequently asked questions below.
All loans subject to Texas Capital Bank credit approval and SBA eligibility.
Every member of the Texas Capital Bank team has been great to work with — from the underwriters to my banking lender. The entire SBA team is extremely thorough and professional.
Mal Patil
President and CEO | River Oaks Physical Therapy & Wellness
Frequently asked questions about SBA Loans
How do SBA Loans work?
The Small Business Administration (SBA) is a U.S. government agency that approves billions of dollars in loans to small businesses every year. Most SBA Loans are issued through a bank, a credit union or other lending institution, and the SBA guarantees part of the loan. This guarantee allows banks to utilize more flexible underwriting guidelines in evaluating an SBA Loan request, since a portion of the bank’s credit risk is offset by the government’s guarantee. The guarantee amount varies depending on the size and type of loan 50%-100%.
Interest rates on SBA Loans are set by the lender, in keeping with SBA guidelines. The rate is based on the prime rate, plus an additional markup rate called the spread. Interest rates vary slightly depending on the use of funds, collateral and terms of the loan.
What does it mean to be a Preferred SBA Lender?
Texas Capital Bank is a Preferred SBA Lender. SBA Loans require a high level of expertise to ensure a smooth application process, so you’ll want to select a lender who is a Preferred SBA Lender. This means the bank is authorized and approved to underwrite the credit application instead of submitting it to the SBA for approval, which will save time in completing the loan process. Preferred lenders are able to provide an approval 2-6 weeks faster than lenders who are not qualified as Preferred SBA Lenders.
What qualifies my business for an SBA Loan?
Not all business types are eligible for an SBA Loan. Financial institutions, life insurance providers, passive businesses (for example, investment properties) and speculative businesses (such as oil exploration) are among those who cannot secure SBA financing.
In addition, your business must:
- Do business in the U.S.
- Operate for profit
- Meet SBA business size standards
- Have a reasonable amount of invested equity
- Have a demonstrable ability to repay the loan
- Owners with 20% or more ownership must guarantee the loan
How can SBA loan funds be used?
This list is not all-inclusive, but some of the most common approved loan purposes are:
- Business acquisition and partner buyouts
- Purchase of owner-occupied commercial real estate, including special use properties
- Building construction or expansion
- Debt refinancing
- Purchase of machinery or equipment
- Purchase of furniture, fixtures and/or leasehold improvements
- Working capital
What information do I need to provide during this process?
Preliminary Discussion
- Overview of business and loan purpose
- Interim financial statements for the business
- Three years’ business tax returns and three years projected tax returns
- Personal financial statements and tax returns
- Joint returns with spouse
At Application
- Completed loan application
- Business plan with projections and assumptions
- Accounts payables and accounts receivables aging reports
- Affiliate company information
- Copy of purchase agreement (for business purchases, real estate and partner buyout)
- Owner’s and manager’s resume
During Loan Process
- Be ready to provide additional information during the loan process. Sometimes the documentation may not paint a full picture, and the loan officer may ask for your help in filling in any gaps.