SBA loans for owner-occupied property across Texas.
When a deal calls for long-term, government-backed financing, we place SBA 7(a) and 504 loans through relationships with more than 20 SBA lenders. We match your scenario to the right program and the best terms. Anywhere in Texas, the use case is the building your business operates out of. Business-purpose only, and every structure is set in underwriting.
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
SBA loans offer low down payments and long amortizations for owner-occupied property and business acquisition. USA Mortgage arranges and places SBA financing through our network of partner lenders; we are not ourselves an SBA lender. We shop your file across that network so you get the strongest approval.
Who actually funds an SBA loan in Texas, and where does USA Mortgage sit?
A partner lender funds it. We arrange and place the file. On a 504 there are two pieces, a bank loan and a debenture through a Certified Development Company, so you deal with a CDC alongside the lender. Several CDCs operate across Texas. Capital CDC reports that it ranks 10th nationally for SBA 504 volume among 183 CDCs and 1st by total number of 504 loans in its five-state region, which includes Texas, over more than 20 years. Those are the CDC's own published figures, not an SBA ranking we pulled. We match the lender and the CDC to your scenario rather than sending every file to the same pair. See the SBA program page for terms.
Does the Texas market favor buying the building over renewing the lease?
It depends on your product type, because Texas asset classes are not moving together. Industrial is the strong side: Dallas-Fort Worth led the entire United States in both industrial supply and demand in the second quarter of 2026, with 17.9 million square feet of year-to-date net absorption at 9.3% vacancy, and Houston added 5.8 million square feet of positive absorption at 7.6% vacancy. Office is still repricing, at 19.9% vacancy in DFW, 20.6% in Austin, and 27.7% in Houston in the same quarter. A tight market is where owning the building tends to beat renewing; a soft one gives a tenant real negotiating room. Run the comparison on your own space with your broker before you assume either.
How do Texas property taxes hit a building my business occupies?
Texas trades income tax for property tax, and none of the homeowner relief reaches your building. There is no state individual income tax, and the effective property tax rate runs roughly 1.2% to 1.4% depending on the county. Property tax is a fixed, non-discretionary line on every month of a 25-year amortization, it is set locally, and it does not fall when part of the building sits empty. The 2025 relief package went to owner-occupants of homes, not to commercial property: SB 4 and Proposition 13 raised the school district homestead exemption to $140,000 for the 2026 tax year, and a homestead exemption does not apply to commercial or investment property. Neither does the homestead appraisal cap, so assessed value on your building can move with the market year over year. Underwrite the tax line at reassessed value, not at the seller's current bill, and talk to your CPA or a property tax consultant about the specific parcel.
There is no state income tax. Does my operating entity still owe Texas anything?
Texas has no individual income tax, but it does impose a franchise tax on entities. That matters on an SBA file because the borrower is usually an operating company, often with a separate entity holding the real estate, and the franchise tax is a gross receipts tax rather than a traditional corporate income tax. There is also equipment relief worth asking about: HB 9, from the 2025 session, exempts up to $125,000 of business personal property from taxation by all taxing entities, which is the tax on the equipment and inventory inside the building rather than on the building itself. Reporting on the 2025 business personal property changes is not fully settled, so confirm the current amount and your filing obligations with your CPA rather than budgeting off this page.
Can I shop title companies to cut closing costs on a Texas SBA purchase?
Not on the premium. Texas is one of the few states where the government sets the title rate. Insurance Code section 2703.151 requires the Insurance Commissioner to fix and promulgate title insurance premium rates, so for a given policy amount the basic premium is identical at every title company in the state. Commissioner's Order No. 2025-9697 cut those basic premium rates 6.2% effective March 1, 2026. The Department's own worked example: a $268,500 policy carries a $1,612 basic premium. What you are choosing between is escrow service, endorsements, closing-fee items, and whether the company can keep pace with SBA documentation, which runs heavier than a conventional purchase. Budget the premium as a fixed number and pick on service.
Why does the appraisal carry more weight on a Texas commercial file?
Because Texas is a non-disclosure state. No statute compels reporting a sale price to the county appraisal district, prices are not recorded on deeds, and you cannot pull them from a county clerk search. Appraisal districts work from voluntary submissions by agents, title companies and owners, plus MLS data obtained by agreement. On owner-occupied commercial property, where a lot of trades happen off market, that makes comps genuinely harder to source than in a disclosure state and pushes more of the value support onto the appraisal. Build the appraisal into your timeline rather than treating it as a formality, and expect the lender to lean on it.
What does 10% down look like on a Texas owner-occupied building?
Financing runs up to 90%. On a $2,000,000 Texas building that is up to $1,800,000 financed and $200,000 from you (2,000,000 x 90% = 1,800,000), before closing costs. The term runs up to 25 years at market SBA rates, which is the trade you make for the paperwork and the longer timeline. Budget the Texas property tax line separately, because a building your business occupies carries no homestead relief. Subject to underwriting.
$350,000 at the bottom, $5,000,000 and up at the top. Both 7(a) and 504 structures are on the table. Below $350,000 the documentation load is hard to justify against the loan, and a smaller Texas purchase is usually better served by a commercial bridge. Subject to underwriting.
Does my business have to occupy the Texas building?
Yes. This program is for owner-occupied commercial real estate. If you are buying a Texas building to lease entirely to third parties, that is an investment deal and a commercial bridge fits instead. Income is fully documented on an SBA file, so expect business returns and financials rather than the asset-only review our bridge and construction programs run. Subject to underwriting.
More SBA Financing questions, answered on the program page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.
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