SBA Loans for Real Estate in Texas: Complete 2025 Guide for Owner-Occupied Properties
Texas business owners are seizing historic commercial property opportunities thanks to favorable SBA loan programs. In 2025, with SBA 504 rates hovering near 6.20% and record-low down payments, more Texas firms are buying their own offices, warehouses, and retail locations—locking in equity-building facilities and stable occupancy costs that fuel long-term growth.
- SBA Loans for Real Estate in Texas: Complete 2025 Guide for Owner-Occupied Properties
- Texas Commercial Real Estate Market: 2025 Outlook
- SBA Real Estate Loan Deep Dive: 504 vs. 7(a)
- Texas Commercial Property Types & SBA Loan Examples
- Where Are the Best Opportunities? Texas Local Market Intelligence
- Top SBA Preferred Lenders in Texas
- Step-by-Step: Getting an SBA Real Estate Loan in Texas
- SBA Loan Success: A Hypothetical Deal in Dallas
- Your Next Steps: Secure Your Texas SBA Real Estate Loan
Texas Commercial Real Estate Market: 2025 Outlook
- Market Momentum: Texas is leading the country in commercial real estate transactions, with $59B in CRE sales statewide in 2024—and Dallas-Fort Worth, Houston, and Austin in the national top 10 for owner-occupied purchases.*
- Acquisition Costs: Median price per SF is $230 for office, $180 for industrial, $265 for retail. Owner-occupied flex spaces in central Dallas average $980,000 (3,500 SF). Houston warehouses (7,000 SF) fetch $1.19M. (CoStar Data, Q1 2025)
- Vacancy Rates: Office: 15.1%, Retail: 6.8%, Industrial: 4.7% (Dallas). Lower than national averages (office: 16.6%, retail: 8.2%).
- Occupier Demand: In 2025, demand for owner-occupied buildings is being driven by retail service expansions, medical/dental clinics, light manufacturing, and logistics firms seeking control over occupancy and cost stability.
SBA Real Estate Loan Deep Dive: 504 vs. 7(a)
How Texas Businesses Use SBA Loans for Real Estate
- SBA 504 Loans: Designed for commercial real estate & fixed equipment. Structure: 50% from bank, 40% SBA (CDC), 10% borrower down (15% for special purpose properties).
- SBA 7(a) Loans: Versatile; can fund real estate plus working capital, inventory, or renovations. Up to 90% financing for owner-occupied properties, with slightly higher typical rates.
Owner-Occupancy Requirement: 51% for existing buildings (504/7a); 60% for new construction. Allows for partial leasing of excess space.
- Loan-to-Value: Up to 90% LTV for both programs; cash outlays as low as 10%.
- Interest Rates (May 2025): 504 Loans: 6.18%–6.40% fixed 25 yrs. 7(a): 7.75%-9% variable (WSJ Prime + 2.25%-2.75%).
- Terms: 10, 20, or 25 years. Pre-payment penalties in first 10 years for 504s (declining scale).
- Fees: 504: ~2.5% CDC/SBA fees; 7(a): up to 3.5% guaranteed fee, both may be financed.
See an example: A Houston healthcare firm buys a ,000,000 medical office, putting down 0,000 (10%)—securing a 25-year, fixed 6.25% SBA 504 rate for 0,000. Their P&I payment is ~$5,925/month—often less than class A rent in Katy, TX.
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
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For details on GHC Funding's specific products and to start an application, please visit our homepage:
Texas Commercial Property Types & SBA Loan Examples
Owner-Occupied Commercial Buildings
- Dallas Professional Services Office (Richardson): Buy 4,200 SF at $241/SF ($1,013,000). Down payment: $101,300. 504 loan at 6.20%, 25 years: $5940/mo P&I. Lease out 1,500 SF at $27/SF NNN yields $40,500/year offsetting total payments.
- San Antonio Medical Practice: 6,800 SF at $220/SF ($1.50M). Upfront: $150,000. Monthly P&I: $8,789. Tax/insurance: $2,100/mo. Practices project $1,450,000 revenue, cost savings vs. lease $1,250/mo, plus long-term appreciation.
Mixed-Use Properties (Retail/Office with Residential)
- Austin Mixed-Use (East Austin): 3,500 SF (ground floor coffee/office, 2 apartments up). Cost: $925,000. SBA down: $92,500. Rent from apartments ($2,400/mo x2) subsidizes business mortgage: P&I $5,415/month.
- Galveston Retail/Resi: Purchase historic storefront + upstairs living for $667,000. SBA 504: $66,700 down, est. $3,865/mo P&I over 25 yrs. Airbnb income and business operations supported.
Industrial and Warehouse Opportunities
- Houston Distribution/Last Mile Center (Northwest corridor): 8,100 SF @ $165/SF ($1.34M). SBA 504: $134,000 down, $8,003/mo P&I. Logistics/wholesale firms protect supply chain and manage costs.
- Fort Worth Light Manufacturing: 6,400 SF industrial flex @ $150/SF ($960,000). Down: $96,000. Payment: $5,736/mo. Leasing rear 1,200 SF at $12/SF yields $14,400/year.
Where Are the Best Opportunities? Texas Local Market Intelligence
- Dallas-Fort Worth (Uptown, Richardson, Frisco): Professional/medical owner-users targeting 3,000–8,000 SF at $210-$265/SF. High demand, strong refinance/resale values.
- Houston (Energy Corridor, Sugar Land): Warehouses, clinics, retail; 5%-7% vacancy. Healthcare, dental, child care businesses growing rapidly.
- Austin (East, South Lamar, Tech Ridge): Tech/creative mixed-use, adaptive reuse. Median $265/SF. Multifamily rentals boost income.
- San Antonio (Medical Center, Northwest Loop): Med/dental, legal/accounting, logistics. Values $190–$240/SF.
- Plano & The Woodlands: Suburban office, flex; diversified growth, strong school districts attract professional services.
- El Paso (Westside, Airport): Import/export warehousing, distribution. Values $120-$160/SF; cross-border trade expansion.
Economic Growth: The Texas Economic Development Act has driven over $10B in corporate relocations since 2020, spurring new business formation and CRE demand, especially from service, health, manufacturing, and IT operations.
Zoning/Development: Ensure zoning matches your use and owner-occupancy requirements; Texas cities have varying requirements (e.g., Dallas commercial code vs. Houston’s more flexible zoning).
Top SBA Preferred Lenders in Texas
- Live Oak Bank (nationwide SBA leader; deep CRE experience, competitive pricing)
- Frost Bank (TX-based; SBA Preferred Lender; strong in owner-occupied facilities statewide)
- Comerica Bank (large Texas presence, rapid approvals for professional/medical borrowers)
- Independent Bank (regional TX, relationship-driven, local focus lending teams)
- PeopleFund CDC (leading 504 CDC; specializes in SBA 504 owner-occupied transactions)
2024-2025: Approval rates for SBA 504 real estate loans in TX are above national average (59% vs. 54%); COVID-impacted businesses must show 2-3 years of profitability, but flexible underwriting remains.
Community Banks offer personalized service/local market insight, while national SBA lenders may expedite processes and offer larger loan capacities. Compare prepayment penalties, underwriting requirements, and customer service.
Step-by-Step: Getting an SBA Real Estate Loan in Texas
- Initial Consult: Meet with SBA specialist; prequalify business and property fit.
- Business Plan & Projections: Document strategy, 3-year projections, owner resumes.
- LOI/Contract: Secure purchase agreement or letter of intent for target property.
- Loan Application & Personal Financials: Submit SBA form 1919, personal financial statements, tax returns (3 years).
- Third-Party Reports: Order appraisal, phase I environmental, property condition report.
- Lender Underwriting: Bank reviews credit, project cash flow, global debt service analysis.
- CDC/SBA Approval: For 504, CDC and SBA authorize debenture financing.
- Commitment & Closing: Quasi-escrow closing, with title, insurance, and entity docs finalized.
- Funding: SBA disburses loan, property transfer completes.
- Key Timeline: 45–90 days from signed contract to funding (average: 65 days for simple transactions).
- Common Hurdles: Appraisal value shortfalls, weak business cash flow (mitigated by projections, personal guarantees), environmental issues.
SBA Loan Success: A Hypothetical Deal in Dallas
- Business: Growing CPA firm in Richardson, TX
- Property: 3,800 SF Class B office ($240/SF = $912,000)
- SBA 504 Structure: 50% bank ($456,000, 6.75%), 40% CDC/SBA ($364,800, 6.18%), 10% down ($91,200)
- Monthly P&I: $5,199 (combined)
- Tax/Insurance: $720/month
- Annual Business Revenue: $950,000 (post-move; projected increase 11% from extra meeting/collab space)
- Lease Savings: Old lease: $7,100/mo; new ownership effective cost: $5,919/mo. Immediate cash flow gain: $1,180/mo, plus equity build-up.
- After 5 Years: Property appreciation = $1.09M (+20%). Borrower can refinance out, sell, or expand within existing location.
Market Timing: With rates stabilized and strong long-term Texas growth, business owners locking in assets today benefit from both cost predictability and future appreciation upside.
Your Next Steps: Secure Your Texas SBA Real Estate Loan
- Get prequalified with a Texas SBA lender before property shopping.
- Organize financials; highlight any COVID/economic recovery story.
- Consider professional SBA loan brokers for complex or competitive situations.
Start building your business equity with a 2025 Texas SBA 504 or 7(a) commercial property loan—lock in long-term rates, low down payments, and secure your company’s future today.
Request Free SBA Loan Pre-Approval Now
*Sources: CoStar, SBA.gov, Texas Economic Development, lender data, 2024-2025.
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