BUSINESS FINANCING · TX

Business Financing Guide for Ellis County, Texas

Ellis County, Texas is one of the fastest-growing counties in the Dallas–Fort Worth metro, and small businesses here — from Waxahachie to Ennis to Midlothian — have real local options for financing. This guide walks you through what business financing looks like, who qualifies, what documents you need, and which local lenders, CDFIs, and credit unions actually serve this area. We also explain what to watch out for so you can make a calm, informed decision on your own timeline.

§ 01 — What it is

What Is Small Business Financing?

Business financing is money you borrow or receive to start, run, or grow a business. It can come in several forms: **Term loans** are lump-sum amounts you pay back over time with interest — useful for equipment, renovations, or working capital. **Lines of credit** let you draw money as you need it, up to a set limit — good for managing cash flow between jobs or invoices. **Microloans** are smaller loans, often under $50,000, designed for newer or smaller businesses that may not qualify at a traditional bank. **SBA-backed loans** are private loans that the U.S. Small Business Administration partially guarantees, which means the lender takes on less risk and may offer you better terms. **CDFI loans** come from Community Development Financial Institutions — nonprofit or mission-driven lenders whose whole purpose is to serve small businesses in underserved communities, including immigrants and solo contractors. You do not need to be a U.S. citizen to access many of these options. Several lenders in and near Ellis County accept an ITIN (Individual Taxpayer Identification Number) instead of a Social Security Number.

§ 02 — Who qualifies

Who Qualifies? Connecting Eligibility to Ellis County's Economy

Ellis County's economy is anchored by construction, agriculture, manufacturing, retail, and a fast-growing service sector tied to the county's suburban expansion. Many borrowers here are: - Solo contractors or small construction crews working residential builds in Midlothian, Waxahachie, and surrounding areas - Agricultural or agri-business operators in the rural southern parts of the county - Retail or food service owners in Ennis, Red Oak, or Italy - Immigrant-owned businesses, including many operated by Spanish-speaking owners who file taxes using an ITIN **General eligibility signals lenders look for:** - You have operated your business for at least 6–24 months (varies by lender) - You can show consistent income or revenue, even if informal - You have a clean or improving credit history (some CDFI lenders work with scores as low as 550) - Your business is legal and registered in Texas - You have not had recent bankruptcies or tax liens left unresolved **ITIN borrowers:** Several CDFIs and credit unions in this region do not require a Social Security Number. If you pay taxes using an ITIN, ask specifically about ITIN lending programs — they exist and they are legitimate. **New businesses:** If you have been operating under 12 months, a microloan or CDFI product is usually more realistic than a bank loan. Focus on lenders listed in Section 4.

§ 03 — What you need

Documents You Will Typically Need

Gathering documents in advance saves time and makes you look prepared to any lender. The exact list varies, but most lenders in Ellis County will ask for some combination of the following: **Personal identification:** - Government-issued photo ID (passport, driver's license, or consular ID) - ITIN or SSN - Proof of address (utility bill, lease, or bank statement) **Business documents:** - Business registration or DBA certificate from the Texas Secretary of State or Ellis County Clerk - Business license, if required for your trade - Employer Identification Number (EIN) from the IRS — free to obtain at irs.gov **Financial documents:** - Last 2 years of personal tax returns (or 1 year if newer) - Last 2 years of business tax returns, if filed separately - 3–6 months of business bank statements - Profit and loss statement (a simple income-and-expense summary works for small operations) - List of any existing debts or loans **For larger loans or SBA-backed products:** - Business plan (a one-page summary is fine for microloans; more detail needed for SBA 7(a)) - Collateral description (property, equipment, vehicles you own) **Tip:** If you do not have a separate business bank account, open one before applying. It is free at most credit unions, and it dramatically strengthens your application.

§ 04 — Where to start in Ellis County

Local Lenders, CDFIs, and Resources That Serve Ellis County

This is the most important section. These organizations actually serve Ellis County — not just the Dallas metro in general. --- **LiftFund (San Antonio / DFW-area CDFI)** LiftFund is one of the largest CDFIs in Texas and actively lends in Ellis County. They offer microloans from $500 to $1 million, work with ITIN borrowers, provide bilingual (Spanish/English) support, and serve businesses that traditional banks turn away. They also offer free business coaching. 📍 liftfund.com | Serving Ellis County remotely and through DFW offices --- **PeopleFund (Austin-based CDFI, serves all of Texas)** PeopleFund offers small business loans from $1,000 to $350,000, with a focus on underserved entrepreneurs. They are SBA-affiliated and ITIN-friendly. Their loan officers work with you to build the application — they are not just a portal. 📍 peoplefund.org | Statewide including Ellis County --- **BCL of Texas (Business & Community Lenders)** BCL of Texas is a Dallas-area CDFI that offers SBA Community Advantage loans and small business term loans. They specifically serve North Texas small businesses and sole proprietors, including construction contractors. 📍 bcloftexas.org | North Texas including Ellis County --- **SBA Dallas/Fort Worth District Office** The SBA DFW District Office is the federal intermediary that connects Ellis County businesses to SBA 7(a) loans, 504 loans (for real estate or heavy equipment), and the Microloan Program. They do not lend directly — instead they refer you to approved local lenders and CDFIs. Their free SCORE mentorship program is also based out of this district. 📍 sba.gov/offices/district/tx/dallas | (214) 777-5600 --- **SCORE DFW Chapter** Free mentorship from retired business professionals. They help you build your business plan and loan application at no cost. Available via video or in-person in the Dallas area. 📍 dfwscore.org --- **Texell Credit Union (Temple/Central Texas, serves Ellis County members)** Texell is a Texas-based credit union that offers small business loans and lines of credit with competitive rates and a community-focused approach. Credit unions are member-owned, which often means more flexibility than a large bank. 📍 texell.org --- **Waxahachie Community Development / Ellis County Appraisal District Economic Resources** The City of Waxahachie Economic Development Corporation (EDC) and the Ellis County EDC occasionally offer loan guarantees, grants, or incentive programs for businesses locating or expanding in the county. These programs change year to year — worth a direct call. 📍 waxahachietx.com/economic-development | (972) 937-7580 --- **Ennis Economic Development Corporation** The Ennis EDC supports small business growth in that area of the county, particularly retail and manufacturing. Ask about grant programs or low-interest revolving loan funds. 📍 ennistx.gov/economic-development --- **Texas Capital Bank and Prosperity Bank (local branches in Waxahachie/Ennis)** For businesses with established credit (680+), these regional banks have Ellis County branches and offer SBA-referred loan products. Less flexible than CDFIs but competitive on rate for stronger applicants.

§ 05 — What to avoid

Texas-Specific Regulatory Notes

Doing business in Texas comes with some specific rules worth knowing before you borrow: **Business Registration:** If you operate under a name other than your own legal name, you must file a DBA ("Doing Business As") with the Ellis County Clerk's office. The fee is modest and the process is straightforward. Many lenders will not approve your loan without this. **Texas Homestead Protection:** Texas has one of the strongest homestead protection laws in the country. Your primary residence generally cannot be seized to satisfy a business debt — with some exceptions for liens you voluntarily grant. This does not mean you should take on debt carelessly, but it is a meaningful protection for homeowners. **No State Income Tax:** Texas does not have a personal income tax, but businesses may owe the Texas Franchise Tax (also called the "margin tax") if annual revenue exceeds $2.47 million (2024 threshold). Most small businesses in Ellis County fall below this threshold. Still, file the No Tax Due report each year to stay compliant. **Texas Finance Commission Oversight:** Lenders operating in Texas — including alternative lenders and finance companies — are regulated by the Texas Office of Consumer Credit Commissioner (OCCC). If a lender claims to be Texas-licensed, you can verify this at occc.texas.gov. **SBA 504 Loans for Real Estate:** If you are a contractor or investor looking to purchase commercial property in Ellis County, the SBA 504 loan (offered through Certified Development Companies, or CDCs) is worth exploring. It typically requires only 10% down and offers long-term fixed rates. BCL of Texas and other CDCs serve this region. **Texas Veterans Commission:** If you are a veteran-owned business, the Texas Veterans Commission has a Fund for Veterans' Assistance that includes small business support. This is separate from the federal VA system.

§ 06 — Ask a question

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§ 07 — Part of The Legacy Bridge Network

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