BUSINESS FINANCING · TX

Business Financing Guide for Deaf Smith County, Texas

This guide helps small business owners and solo contractors in Deaf Smith County, Texas understand their financing options — from local credit unions and CDFIs to SBA-backed loans. Whether you use a Social Security Number or an ITIN, there are real local resources ready to work with you. Take your time, compare your options, and lean on community lenders who know the West Texas economy. Origen Capital is a directory, not a lender, and this guide does not collect your information.

§ 01 — What it is

What Is Small Business Financing?

Small business financing is money you borrow — or receive — to start, run, or grow a business. It can come as a traditional bank loan, a microloan, a line of credit, or a grant. Some financing is designed for specific purposes: buying equipment, covering payroll during a slow season, purchasing commercial property, or simply having cash on hand when a big job comes in. For contractors and small real-estate investors in Deaf Smith County, financing usually falls into a few categories: • **Term loans** — A lump sum you repay over a fixed period, usually with monthly payments. • **Lines of credit** — A revolving pool of funds you draw from as needed and repay as you go. • **Microloans** — Smaller loans (typically under $50,000) offered through CDFIs and nonprofit lenders, often with flexible qualification standards. • **Equipment financing** — Loans specifically tied to the purchase of tools, vehicles, or machinery. The equipment itself usually serves as collateral. • **SBA-guaranteed loans** — Loans made by local banks or CDFIs that are partially backed by the U.S. Small Business Administration, which lowers the lender's risk and can mean better terms for you. Knowing the difference helps you ask the right questions when you sit down with a lender.

§ 02 — Who qualifies

Who Qualifies in Deaf Smith County?

Deaf Smith County's economy centers on agriculture — feedlots, grain farming, and food processing are major employers and business drivers. The county seat, Hereford, is known as the 'Beef Capital of the World,' and that shapes what local lenders understand and prioritize. Here is the practical reality for local borrowers: • **Sole proprietors and LLCs** both qualify for most loan types. You do not need to be incorporated. • **Farmers and ranchers** may also qualify for USDA Farm Service Agency loans alongside traditional business loans — these are worth exploring separately. • **ITIN holders** (people without a Social Security Number who file taxes using an Individual Taxpayer Identification Number) can qualify for loans at many CDFIs and ITIN-friendly credit unions. Your immigration status does not disqualify you from building business credit. • **New businesses** (under two years old) often struggle with traditional banks but have better options through CDFIs and microloans. • **Contractors and tradespeople** — plumbers, electricians, HVAC technicians, construction workers — are well-served by equipment loans and microloans sized to fit a one- or two-person operation. • **Real-estate investors** buying rental property or fix-and-flip homes in Hereford or the surrounding county may qualify for small commercial or residential investment loans. The rural nature of Deaf Smith County actually works in your favor with some programs — rural enterprise lenders specifically target communities like Hereford.

§ 03 — What you need

Documents You Will Typically Need

Being organized before you walk into a lender's office saves time and builds trust. Every lender is a little different, but here is what most will ask for: **For all applicants:** • Government-issued photo ID (driver's license, passport, or consular ID card — a matrícula consular is accepted at many ITIN-friendly institutions) • ITIN or Social Security Number • Two years of personal tax returns (or business tax returns if your business is separate) • Three to six months of bank statements • Proof of business address (a utility bill or lease agreement works) **For established businesses:** • Profit-and-loss statement (your accountant or bookkeeper can prepare this) • Business license or DBA registration from Deaf Smith County or the State of Texas • List of existing debts and monthly payments **For new businesses or startups:** • A written business plan — even a simple one-page version showing your projected income and expenses • Any contracts or signed agreements that show incoming work **For equipment loans:** • A quote or invoice from the vendor for the equipment you want to buy If you file taxes with an ITIN, bring two years of ITIN tax returns. CDFIs and community lenders that work with ITIN borrowers are experienced in reading these returns — do not be discouraged.

§ 04 — Where to start in Deaf Smith County

Local Lenders, CDFIs, and Resources That Serve Deaf Smith County

These are the institutions most likely to work with small business owners in Deaf Smith County. This is not an endorsement — always compare terms before signing anything. **Local and Regional Banks** • **Plains Land Bank (Farm Credit)** — Based in the Texas Panhandle, Plains Land Bank serves agricultural and rural businesses throughout the region, including Deaf Smith County. Strong option for agricultural contractors and rural real-estate investors. • **First Bank & Trust — Hereford Branch** — A community bank with a presence in Hereford. Community banks like this one often have more flexibility than large national banks for local borrowers. • **Citizens Bank of Clovis (serving the TX-NM border region)** — Serves rural communities in the area and may work with sole proprietors and small LLCs. **CDFIs and Nonprofit Lenders** • **LiftFund** — One of the largest CDFIs in Texas, LiftFund offers microloans from $500 to $1 million and specifically serves ITIN holders, immigrants, women, and rural entrepreneurs. They have Spanish-speaking staff and work throughout the Texas Panhandle. Website: liftfund.com • **PeopleFund** — Another major Texas CDFI, PeopleFund provides small business loans, coaching, and technical assistance. They serve underserved borrowers statewide and can work with Deaf Smith County applicants remotely. Website: peoplefund.org • **Texas ACES (Agricultural and Community Enterprises)** — Targets rural Texas businesses, including those in agricultural supply chains common to Deaf Smith County. **SBA District Office** • The **SBA Lubbock District Office** is the primary SBA contact serving Deaf Smith County. They oversee SBA 7(a) and 504 loan programs in the region and can connect you with SBA-approved lenders near you. Phone: (806) 472-7462. Address: 1205 Texas Ave., Lubbock, TX 79401. • SBA loans are made through approved local lenders — the SBA does not lend directly. The Lubbock office can refer you to approved lenders who understand the Panhandle market. **Credit Unions** • **Caprock Federal Credit Union** — Serves the Texas Panhandle region and may offer small business or personal loans useful for sole proprietors. • **Xcel Federal Credit Union and Plains FCU** — Regional credit unions worth calling to ask about small business products. **ITIN-Friendly Lenders** • LiftFund and PeopleFund (listed above) are the strongest ITIN-friendly options in this region. • Some local credit unions accept ITINs for membership — call ahead and ask specifically about ITIN accounts and business loans. **Rural and State Programs** • **Texas Department of Agriculture — Rural Economic Development** — Offers programs supporting rural Texas businesses. Visit: texasagriculture.gov • **USDA Rural Development Texas** — Offers the Business & Industry (B&I) loan guarantee program for rural businesses. The Lubbock USDA Rural Development office serves Deaf Smith County. Phone: (806) 744-5407.

§ 05 — What to avoid

Texas-Specific Regulatory Notes

Texas has its own rules that affect small business financing. Here are the most important ones for Deaf Smith County borrowers: • **Texas does not have a personal income tax**, which means your business income is taxed differently than in other states. Make sure your tax preparer understands sole proprietor reporting under Texas law. • **Texas Franchise Tax** applies to most LLCs and corporations doing business in Texas once revenues exceed a threshold (currently $2.47 million per year for most businesses). Most small solo contractors fall below this — but register with the Texas Comptroller to confirm your status. • **DBA Registration** — If you operate under a name other than your own legal name, you must file a DBA ('doing business as') with the Deaf Smith County Clerk's office in Hereford. This is a simple, low-cost filing and many lenders require it. • **Texas Home Equity Lending Rules** — Texas has some of the strictest home equity rules in the country. If you plan to use your home as collateral, know that Texas limits home equity loans to 80% of the home's value and requires specific waiting periods. Consult a local attorney before pledging your home. • **Sales Tax Permits** — If your business sells taxable goods or services, you need a Texas Sales and Use Tax permit from the Texas Comptroller. This is free to obtain. • **Contractor Licensing** — Texas does not have a single statewide general contractor license, but many trades (electricians, plumbers, HVAC) require state licensure. Keep your licenses current — lenders and clients will ask. • **Agriculture Exemptions** — Businesses with qualifying agricultural activity may be exempt from certain Texas sales taxes on inputs like feed, equipment, and chemicals. Check with the Texas Comptroller or a local CPA.

§ 06 — Ask a question

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