SBA loans in Texas, and what the lending record actually shows
Texas is the second-largest state for SBA 7(a) lending in the country, it is covered by six district offices rather than one, and it has a property law that changes what you can pledge. All three affect how a Texas SBA application goes.
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Texas is a big SBA state, and the loans are bigger too
Between FY2020 and FY2025, SBA approved 22,835 7(a) loans to projects in Texas, worth $16.89 billion. That is second only to California on both counts — how every state compares per 1,000 small businesses is a different ranking again. What is more interesting is the mismatch between those two rankings.
| Texas share of US 7(a), FY2020–FY2025 | Measured |
|---|---|
| Share of loans approved nationally | 7.55% |
| Share of dollars approved nationally | 10.61% |
| Median Texas loan | $340,200 |
| Jobs the approvals reported supporting | 283,857 |
Texas takes 7.6% of the loans but 10.6% of the money. Texas SBA borrowers are, on the whole, borrowing larger amounts than the national average — consistent with a state where a lot of 7(a) lending goes into real estate, acquisitions and capital-heavy businesses rather than small working-capital requests.
| Fiscal year | Texas loans approved | Median size |
|---|---|---|
| FY2020 | 2,675 | $350,000 |
| FY2021 | 3,569 | $500,000 |
| FY2022 | 3,098 | $350,000 |
| FY2023 | 3,721 | $320,000 |
| FY2024 | 4,649 | $250,000 |
| FY2025 | 5,123 | $280,000 |
The direction of travel is more loans, smaller loans. Texas approvals nearly doubled between FY2020 and FY2025 while the median size fell by roughly a fifth from its FY2021 peak. More Texas businesses are being approved, for less money each. For the eligibility rules behind these approvals see SBA loan requirements, and for how the cost is built up see SBA rates and fees.
Six district offices, not one
Most states are served by a single SBA district office. Texas is divided among six, each covering its own set of counties. Which one covers your county affects the local resources available to you — the counselling, the lender events and the local SBA staff you would actually deal with.
| SBA district office | Texas 7(a) loans FY2020–FY2025 | Approved |
|---|---|---|
| Dallas / Fort Worth | 9,373 | $7.19bn |
| Houston | 6,732 | $5.16bn |
| San Antonio | 4,747 | $3.31bn |
| Lubbock | 854 | $653m |
| Lower Rio Grande Valley (Harlingen) | 658 | $325m |
| El Paso | 450 | $235m |
Dallas/Fort Worth and Houston together account for roughly seven in ten Texas 7(a) approvals. The concentration is worth knowing if you are outside those metros: lenders active in your district may be a different and shorter list than the statewide picture suggests. For the Houston market specifically, see business loans in Houston.
Homestead protection, collateral, and a result that surprises people
Texas gives homesteads unusually strong protection from forced sale, under Article XVI of the Texas Constitution and Chapter 41 of the Texas Property Code. A common assumption follows: that Texas borrowers are therefore less likely to have to secure an SBA loan. The lending record says the opposite.
| Share of 7(a) approvals recorded as secured by collateral | FY2020–FY2025 |
|---|---|
| Texas | 86.8% |
| United States | 81.2% |
Texas 7(a) loans are secured more often than the national average, not less. The sensible reading is that homestead protection changes which assets end up pledged rather than whether collateral is taken at all. If a lender cannot look to your residence, it looks harder at business assets, equipment, and real estate that is not your homestead.
Three practical points follow for a Texas applicant:
Do not plan on your home being the collateral. A lien on a Texas homestead is only valid in narrowly defined circumstances, and a general business loan is not normally one of them. Non-homestead property — a rental, land, commercial premises — is a different matter and can be pledged.
Expect spousal signatures to come up. Texas requires both spouses to consent to a valid lien on a homestead, and Texas is a community property state. These are ordinary parts of a Texas closing, not a sign that something is wrong.
Get the homestead question settled early. Whether a specific property is a homestead is a factual question, and it is far cheaper to answer it at the start than to discover it during closing.
This is general information about Texas property law, not legal advice. Homestead status and lien validity depend on specific facts — consult a Texas attorney about your situation. Collateral shares are calculated from the SBA field recording whether an approval was secured; the association described here is not evidence of cause.
The lenders most active in Texas
445 different lenders approved at least one Texas 7(a) loan over the period. Activity is heavily concentrated, and the mix is not what most people expect — national SBA specialists sit alongside the big banks, and both outrank most Texas-headquartered institutions by volume.
| Lender | Texas 7(a) loans approved | Approved |
|---|---|---|
| The Huntington National Bank | 2,054 | $992m |
| Wells Fargo Bank, N.A. | 1,423 | $321m |
| JPMorgan Chase Bank, N.A. | 895 | $273m |
| Live Oak Banking Company | 869 | $1.30bn |
| BayFirst National Bank | 794 | $143m |
| Readycap Lending, LLC | 775 | $443m |
| United Midwest Savings Bank, N.A. | 595 | $162m |
| Newtek Bank, N.A. | 562 | $239m |
| PNC Bank, N.A. | 486 | $240m |
| Frost Bank | 465 | $294m |
Read the two columns together. Huntington approved the most Texas loans by a wide margin but Live Oak approved more dollars from fewer than half as many loans — a different kind of lender doing a different kind of deal. Volume alone tells you who is busy, not who is right for your project.
Counts are approvals recorded in the SBA 7(a) FOIA file for projects in Texas, FY2020–FY2025, excluding cancelled approvals and exact duplicate records. Lender names appear as recorded, and institutions merge and rebrand over time. This is a record of past activity, not a ranking, a recommendation, or a comparison of rates or terms — and it does not indicate who would approve your application today. Fundur has no affiliation with any lender named.
Texas runs its own credit programmes too
SBA lending is federal, but Texas operates state-level credit support through the Texas Small Business Credit Initiative, funded under the US Treasury’s State Small Business Credit Initiative and administered by the Office of the Governor’s Economic Development and Tourism office. It works alongside SBA lending rather than replacing it.
| TSBCI programme | How it works | Loan size |
|---|---|---|
| Capital Access Program (CAP) | Matching contributions build a loan loss reserve for the participating lender, so the lender can recover charged-off principal and is more able to lend to businesses that struggle to access capital | $5,000 – $5 million |
| Loan Guarantee Program (LGP) | Guarantees up to 80% of unpaid principal on enrolled loans, reducing the lender’s risk on businesses that might not qualify conventionally | $5,000 – $20 million |
| Loan Participation Program (LPP) | The state participates in enrolled loans alongside the lender | Varies by lender |
The important mechanic: you do not apply to the state. These programmes work through participating financial institutions, so the route in is a lender that has enrolled. It is worth asking any Texas lender whether they participate — it can change the answer on a marginal file. TSBCI is not limited to SBA borrowers; it also sits behind conventional Texas business loans.
Source: Office of the Texas Governor, Texas Economic Development, Texas Small Business Credit Initiative programme pages, accessed 2 September 2026. Programme terms and participating institutions change; confirm current details with the programme or a participating lender. Fundur does not administer these programmes.
Texas SBA loan FAQs
Are SBA loan rules different in Texas?
The SBA programme itself is federal and its eligibility rules, size standards and loan structures are the same nationwide. What differs in Texas is the surrounding context: state property law affects what can be pledged as collateral, Texas has its own state credit programmes, and the state is served by six SBA district offices rather than one.
Can the SBA take my house in Texas?
Texas homestead protection means your primary residence generally cannot be pledged as collateral for an ordinary business loan, and a lien on a homestead is only valid in narrowly defined circumstances. That does not make Texas SBA loans unsecured — in fact Texas approvals are secured slightly more often than the national average. Lenders look to business assets and non-homestead property instead. Whether a particular property is a homestead is a legal question for a Texas attorney.
Which SBA district office covers me?
Texas is divided among six: Dallas/Fort Worth, Houston, San Antonio, Lubbock, Lower Rio Grande Valley (based in Harlingen) and El Paso. Each covers a defined group of counties. Your district determines the local SBA resources and counselling available to you, not your eligibility.
Does my spouse have to sign?
Frequently, yes. Texas is a community property state and both spouses must consent to a valid lien on a homestead. Spousal signatures are a routine part of Texas closings and are not a reflection on the application.
How long does an SBA loan take in Texas?
The same as anywhere else — SBA loans are the slowest of the mainstream financing options, typically taking considerably longer than working capital products. Texas adds no extra federal step, though a collateral position involving property can add time. If the need is urgent, look at faster products alongside the SBA route.
What is TSBCI and can I apply directly?
The Texas Small Business Credit Initiative is the state’s credit support programme, funded through the US Treasury. You cannot apply to the state directly — it operates through participating financial institutions, so you apply to an enrolled lender. Ask whether a lender participates before assuming it is unavailable.
Is Fundur an SBA lender?
No. Fundur is a financing marketplace, not a lender, and has no affiliation with the U.S. Small Business Administration or any government agency. The SBA does not lend directly to small businesses either — it guarantees loans made by participating lenders.
Where do the figures on this page come from?
From the SBA’s own published 7(a) FOIA data file, as-of 30 June 2026, covering approvals in fiscal years 2020 to 2025 for projects located in Texas. Cancelled approvals and exact duplicate records are excluded. These are historical approvals and describe what has happened, not what any particular business will be offered.
Tell us about the Texas business. We will find the financing that fits.
SBA is one route and it is not always the fastest. One application compares it against the alternatives so you can see the trade-off before you commit to a long process.
Fundur is a financing marketplace, not a lender. Fundur does not make credit decisions or guarantee approval, rates, terms, or funding times. A dedicated funding advisor can walk you through any option you receive. Final terms depend on lender approval.