BUSINESS FINANCING · TX

Business Financing Guide for Montgomery County, Texas

This guide helps solo contractors and small business owners in Montgomery County, Texas understand their financing options, from local credit unions and CDFIs to SBA-backed loans and ITIN-friendly lenders. We focus on the local intermediaries who actually serve The Woodlands, Conroe, and surrounding communities — not just national programs. Whether you're just starting out or looking to grow, the right local partner makes all the difference. Origen Capital is a directory, not a lender — we connect you to the right resources, never collect your information.

§ 01 — What it is

What Is Business Financing?

Business financing is money you borrow or receive to start, run, or grow a business. It can come as a loan you repay over time, a line of credit you draw from as needed, a microloan for smaller amounts, or even a grant you never have to pay back. For solo contractors — plumbers, electricians, landscapers, cleaners, builders — financing often means covering equipment, a work vehicle, tools, insurance, or a gap between when you finish a job and when the client pays. For small real-estate investors, it might mean a bridge loan, a rehab loan, or working capital between deals. There is no single 'best' product. The right financing depends on how long you've been in business, your credit history, your revenue, and what you need the money for. This guide helps you understand your choices so you can walk into any lender conversation with confidence.

§ 02 — Who qualifies

Who Qualifies? Montgomery County's Local Economy

Montgomery County is one of the fastest-growing counties in Texas and in the entire United States. Cities like Conroe, The Woodlands, Magnolia, Spring, Willis, and Splendora are home to tens of thousands of small businesses — many of them one- or two-person operations in construction trades, home services, landscaping, food service, and real estate. This growth creates real financing opportunities, but it also means lenders vary widely in who they serve. You may qualify for local business financing if: - You have been operating your business for at least 6–12 months (some lenders require 2 years). - You have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) — ITIN-friendly lenders do exist and are listed below. - You have some documented income, even if informal — bank statements, invoices, or tax returns all help. - Your personal credit score is at least 580–620 for many community lenders (some CDFIs go lower). - You are registered with the State of Texas, even as a sole proprietor with a DBA (Doing Business As). Don't assume you won't qualify. Many Montgomery County residents are first-generation business owners who have been turned down by large banks but approved by community lenders. Start local.

§ 03 — What you need

Documents You Will Typically Need

Gathering your paperwork before you apply saves time and shows lenders you are prepared. Here is a practical checklist for most business loan applications in Montgomery County: **Identity & Registration** - Government-issued photo ID (driver's license, passport, or consular ID / matrícula consular) - SSN or ITIN - Business registration or DBA certificate from Montgomery County Clerk or Texas Secretary of State - EIN (Employer Identification Number) from the IRS — free to obtain at irs.gov **Financial Records** - Last 2 years of personal tax returns (or 1 year if you are newer) - Last 2 years of business tax returns, if you have them - Last 3–6 months of business bank statements - Profit and loss statement (a simple spreadsheet is fine for microloans) - List of outstanding debts or loans **Business Plan or Use of Funds** - A short description of what you will use the money for and how you will repay it (one page is enough for most community lenders) **For Real-Estate Investors** - Property address and purchase contract or appraisal - Rent rolls if the property is already producing income - Scope of work and contractor bids if it is a rehab If you are missing something, ask the lender before walking away. Many community lenders in Montgomery County will work with you to fill gaps.

§ 04 — Where to start in Montgomery County

Local Lenders, CDFIs, Credit Unions, and SBA Resources That Serve Montgomery County

This is the most important section of this guide. These are the institutions that actually serve Montgomery County residents — not just national programs. **Community Development Financial Institutions (CDFIs)** - **LiftFund** — One of the largest CDFIs in Texas, LiftFund provides microloans ($500–$1 million) to small businesses across Texas, with deep experience serving ITIN borrowers and first-time business owners. They have worked extensively with Spanish-speaking entrepreneurs in the Houston–Conroe corridor. Visit liftfund.com or call their Texas line. - **PeopleFund** — Another major Texas CDFI offering small business loans, technical assistance, and financial coaching. PeopleFund serves Montgomery County and often pairs loans with free one-on-one advising. Visit peoplefund.org. - **BCL of Texas (Business & Community Lenders)** — Offers SBA Community Advantage loans and microloans to underserved small business owners in Texas. They can work with borrowers who lack traditional credit history. **SBA District Office** - **SBA Houston District Office** — Montgomery County falls under the Houston District. The Houston District Office connects borrowers to SBA 7(a) loans, SBA 504 loans (for equipment and real estate), and SBA Microloans (up to $50,000). The SBA itself does not lend directly — it guarantees loans made by approved lenders. The Houston office can refer you to approved lenders who serve Montgomery County. Address: 8701 S. Gessner Dr., Suite 1200, Houston, TX 77074. Phone: (713) 773-6500. **Local and Regional Credit Unions** - **Lone Star National Credit Union** — Serves residents throughout the greater Houston–Montgomery County area, with business accounts and small business lending options. - **TDECU (Texas Dow Employees Credit Union)** — Headquartered in Lake Jackson, TDECU has branches serving the greater Houston area including Montgomery County. Offers business checking, savings, and small business loans with competitive rates. - **Woodforest National Bank** — While not a credit union, Woodforest has a strong community banking presence in Montgomery County and offers small business checking and loan products. - **Amegy Bank** — A Texas-based regional bank with a presence in The Woodlands and Conroe areas; known for working with growing small businesses in the region. **ITIN-Friendly Lenders** - **LiftFund** (listed above) explicitly welcomes ITIN borrowers. - **PeopleFund** also accepts ITIN for most loan products. - **Self-Help Federal Credit Union** — Operates in Texas and is known nationally for ITIN-friendly lending and financial products for immigrants and underserved communities. - Some local branches of **Frost Bank** and **Woodforest National Bank** in Montgomery County will open business accounts with an ITIN + EIN combination — call the specific branch to confirm. **Free Business Advising (Before You Borrow)** - **SCORE Houston Chapter** — Free, confidential mentoring from retired business professionals. They serve Montgomery County and can help you prepare a loan application or business plan. score.org/houston - **Houston SBDC (Small Business Development Center) at San Jacinto College** — Free and low-cost advising for small businesses in the greater Houston and Montgomery County region. They can help you get loan-ready at no charge. sbdchouston.com - **Montgomery County Economic Development Council (MCEDC)** — Local resource that connects businesses to county-level programs, incentives, and referrals. mcedc.com

§ 05 — What to avoid

Texas-Specific Regulatory Notes

Texas has its own rules that affect small business borrowing. Here are the most important ones to know before you sign anything: **Texas Homestead Laws** Texas has very strong homestead protections. Your primary residence generally cannot be seized to satisfy most business debts. However, if you personally guarantee a business loan and pledge your home as collateral, you can waive some of these protections. Read any personal guarantee carefully — and ask a local attorney or your SBDC advisor if you are unsure. **No State Income Tax** Texas has no personal income tax, which can make cash flow easier for sole proprietors. But you are still responsible for federal self-employment taxes and Texas franchise tax (if your business grosses above the threshold, currently around $2.47 million for 2024). Keep this in mind when calculating how much debt you can afford. **Texas Finance Commission Oversight** The Texas Office of Consumer Credit Commissioner (OCCC) regulates many types of business lenders in the state. If a lender is not registered with the OCCC or cannot tell you who regulates them, that is a red flag. **Commercial Loan Disclosure (SB 1286 / Texas Commercial Finance Disclosure Law)** Texas passed a commercial finance disclosure law (effective 2024) requiring many alternative lenders to disclose key loan terms — including the total cost of financing and the annual percentage rate (APR) — before you sign. If a lender refuses to show you these numbers upfront, walk away. **EIN Registration** Every business borrower in Texas should have an EIN. It is free from the IRS (irs.gov) and separates your business identity from your personal Social Security Number, which reduces your risk of identity theft and makes you look more credible to lenders. **DBA / Assumed Name Filing** If you operate under a business name that is not your personal legal name, you must file a DBA (Assumed Name Certificate) with the Montgomery County Clerk's office. This is required before most lenders will open a business account or process a loan.

§ 06 — Ask a question

IRIS AI

Still don't see your situation?

Ask Iris. She'll explain it the way it should have been explained the first time.

ACROSS THE NETWORK

ReadyDocs

Starting a business in Montgomery County? ReadyDocs has the compliance guide.

The Board

Need a licensed contractor in Montgomery County?

§ 07 — Part of The Legacy Bridge Network

Four products. One purpose.