Texas SBA loans for 2021 offer capital funding for a variety of commercial uses, including startup money, working capital, inventory, and equipment purchasing, property acquisition, as well as for disaster relief, and even other applications. These loans come with varying amounts and terms, along with interest rates and other factors, so read on to learn more about Texas SBA loans for this year.

Texas SBA loans in 2021 come in different structures, with four being the most common types of packages. Although these are guaranteed by the federal government, the government itself does not lend money to businesses. Rather, the loans are made through banks, credit unions, and other private lenders. Here are the four most common types of SBA loans:

1.  7(a) loan. This loan can be as much as $5 million and can be used for things like expanding an existing business, purchasing equipment, or working capital.
2. 504 loan. This type of SBA loan also goes up to $5 million and can be used to acquire vacant property, unimproved land, machinery, or facility acquisition.
3. Microloans. These are relatively small loans, which range up to $50,000 and the funds may be used for inventory purchases, buying commercial equipment, startup funds, or working capital.
4.  Disaster loans. Established businesses impacted by a natural disaster can apply for this type of loan, which goes up to $2 million and the money obviously must be used in the restoration of the business.

As you can clearly see, these loans are intended for specific purposes. So, it’s best to speak with an experienced lender who can explain all available options.