BUSINESS FINANCING · TX

Business Financing Guide for Potter County, Texas

This guide is for small business owners, solo contractors, and real-estate investors in Potter County, Texas — including Amarillo and the surrounding area. It walks you through the types of financing available, who qualifies, what documents you will need, and which local organizations can actually help you. We highlight local credit unions, CDFIs, and ITIN-friendly lenders because they tend to be the most accessible starting point. Federal programs like SBA loans are real options, but a local intermediary is usually the best first call.

§ 01 — What it is

What Is Small Business Financing?

Business financing is money you borrow or receive to start, grow, or stabilize a business. It comes in several forms: • **Term loans** — A lump sum you repay over a set period, usually with fixed monthly payments. Good for buying equipment, covering a renovation, or expanding a space. • **Lines of credit** — A revolving account you draw from as needed and repay over time. Useful for managing cash flow between jobs or invoices. • **Microloans** — Smaller loans, often under $50,000, offered by nonprofit lenders and CDFIs. These are designed for newer or smaller businesses that may not qualify at a traditional bank. • **SBA-guaranteed loans** — Loans made by local banks or credit unions, partially guaranteed by the U.S. Small Business Administration. This guarantee lowers the risk for the lender, which can make it easier for you to qualify. • **CDFI loans** — Community Development Financial Institutions are nonprofit or mission-driven lenders that serve businesses in underserved communities. They often have more flexible requirements than commercial banks. • **Grants** — Money you do not have to repay. Grants are competitive and tied to specific industries, demographics, or locations. They are worth pursuing but should not be your only plan. None of these options is right for every situation. The goal of this guide is to help you figure out which path fits your business and who in Potter County can walk you through it.

§ 02 — Who qualifies

Who Qualifies? Local Context for Potter County

Potter County is anchored by Amarillo, one of the Texas Panhandle's main economic centers. The local economy is driven by agriculture and food processing, health care, transportation and logistics, retail, construction trades, and a growing small-business corridor along key commercial strips. **You may qualify for local financing if you:** • Operate or plan to operate a business within Potter County or the greater Amarillo metro area • Are a sole proprietor, independent contractor, LLC, or incorporated business • Have been in business at least 6–12 months (some microloan programs accept startups) • Can show a way to repay the loan — through revenue, a business plan, or both • Have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) **ITIN borrowers:** You do not need a Social Security Number to access financing. Several CDFIs and community lenders in the Amarillo area work with ITIN holders. This is especially relevant for immigrants and mixed-status families who operate businesses in the construction trades, food service, or retail sectors. **Credit score:** A low credit score does not automatically disqualify you. CDFIs and microlenders often look at your full financial picture — cash flow, character, and community ties — not just a number. **Agriculture-adjacent businesses:** Given the Panhandle's agricultural economy, some borrowers may also qualify for USDA Rural Development business programs if their location or industry qualifies.

§ 03 — What you need

Documents You Will Typically Need

Each lender has its own checklist, but most will ask for some combination of the following. Gathering these early will speed up your process. **For all applicants:** - Government-issued photo ID (driver's license, passport, or consular ID) - ITIN or SSN - Two years of personal tax returns (or as many years as you have) - Two to three months of personal bank statements **For existing businesses:** - Two years of business tax returns - Recent profit-and-loss statement (last 3–6 months) - Business bank statements (last 3–6 months) - Business license or DBA registration from the City of Amarillo or Potter County - Any existing lease agreements or contracts **For startups or newer businesses:** - A written business plan with projected revenue and expenses - Description of the business and the market it serves - Personal financial statement **For real-estate-related financing:** - Property address and current use - Recent appraisal or purchase agreement - Rent rolls (if the property is income-producing) **Tip:** If you are missing some of these documents, talk to your lender first. Many CDFIs and credit unions will help you figure out what substitutions are acceptable before you apply.

§ 04 — Where to start in Potter County

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

These are organizations with a real presence in or near Potter County. They are your most practical first contacts. --- **LiftFund (San Antonio-based CDFI, serves Amarillo)** LiftFund is one of the most active CDFIs in Texas and regularly works with small businesses in the Panhandle. They offer microloans and small business loans up to $1 million, with flexible underwriting that accommodates ITIN borrowers and newer businesses. They have Spanish-speaking staff and can guide you through the application. 🌐 liftfund.com | 📞 (888) 215-2373 --- **PeopleFund (Austin-based CDFI, statewide Texas coverage including Amarillo)** PeopleFund provides loans from $1,000 to $350,000 for small businesses and startups across Texas. They emphasize businesses owned by women, people of color, veterans, and low-to-moderate income entrepreneurs. ITIN-friendly. Free business coaching is included. 🌐 peoplefund.org | 📞 (512) 836-2111 --- **Amarillo National Bank** A locally rooted commercial bank headquartered in Amarillo with deep ties to the Potter County economy. Offers business checking, term loans, lines of credit, and SBA loan products. A good option for established businesses with documented revenue. 🌐 amarillonational.com --- **Happy State Bank (Amarillo branches)** A Texas-based community bank with branches in Amarillo. Offers SBA 7(a) and SBA 504 loan products alongside conventional business loans. Known for relationship banking. 🌐 happystatebank.com --- **Amarillo Community Federal Credit Union** A member-owned credit union serving the Amarillo area. Credit unions typically offer lower interest rates and more flexible terms than commercial banks, and they are more likely to work with members who have limited credit history. 🌐 acfcu.com --- **Educators Credit Union (Amarillo)** Serves employees in education and the broader community. Offers personal and small-business loan products. Membership criteria are broader than the name implies — worth a call to confirm eligibility. --- **SBA Lubbock District Office (serves the Texas Panhandle)** The SBA does not lend directly, but its Lubbock District Office oversees SBA programs for the Panhandle region, including Potter County. They can connect you with approved local lenders for SBA 7(a) loans (up to $5 million, general business use), SBA 504 loans (for real estate and heavy equipment), and SBA Microloans (up to $50,000, through nonprofit intermediaries). 📍 1205 Texas Ave, Lubbock, TX 79401 | 📞 (806) 472-7462 🌐 sba.gov/offices/district/tx/lubbock --- **SCORE Amarillo (Mentoring Chapter)** SCORE is a free mentoring organization affiliated with the SBA. The Amarillo chapter connects you with retired business executives who can help you prepare a business plan, understand your financing options, and get ready to apply. Free and confidential. 🌐 score.org/amarillo --- **Amarillo SBDC (Small Business Development Center)** Hosted at West Texas A&M University, the Amarillo SBDC provides free and low-cost consulting for businesses across the Panhandle. They can help you understand your financing options, prepare financial statements, and connect you with lenders. Bilingual assistance may be available. 📍 West Texas A&M University, Canyon, TX | 📞 (806) 651-5151 🌐 wtamu.edu/sbdc --- **USDA Rural Development – Texas** If your business or property is outside the Amarillo city limits, USDA Rural Development may have additional programs available, including Business & Industry (B&I) guaranteed loans and rural energy grants. 🌐 rd.usda.gov/tx

§ 05 — What to avoid

Texas-Specific Rules and Programs to Know

Texas has a business-friendly regulatory environment, but there are a few state-level details that are important for Potter County borrowers. **Texas Secretary of State — Business Registration** Before you apply for most business loans, you need to be registered as a legal business entity in Texas. You can register a sole proprietorship (DBA) at the county level through the Potter County Clerk's office, or form an LLC or corporation through the Texas Secretary of State. 🌐 sos.state.tx.us | 📞 (512) 463-5555 **Texas Governor's Office — Texas Economic Development programs** The Texas Governor's Office of Economic Development and Tourism administers several programs for small businesses, including the Texas Small Business Credit Initiative (TXSBI), which was re-funded under the American Rescue Plan. Under this program, Texas has deployed funds to CDFIs and state-certified lenders to expand access to capital — particularly for businesses in underserved communities. 🌐 gov.texas.gov/business **Texas Workforce Commission — Small Business Resources** If you employ or plan to employ workers, the TWC offers wage subsidy programs, skills training grants, and employer tax credits that can improve your business's cash flow position. 🌐 twc.texas.gov **No State Income Tax** Texas has no personal state income tax. This can simplify your tax picture as a sole proprietor, but you are still responsible for federal self-employment taxes and any applicable Texas franchise tax (for LLCs and corporations with revenue above the threshold). **Texas Homestead Exemption** Texas has strong homestead protections. Your primary residence generally cannot be seized by a business creditor in a lawsuit. However, this does not protect you from a lender who has a lien on your home — for example, if you used your home as collateral. Never pledge your home as collateral without fully understanding the terms. **Contractor Licensing** If you are a solo contractor in construction, electrical, plumbing, or HVAC, Texas requires state-level licensing for certain trades. Make sure your licenses are current before applying for a business loan — lenders will verify this.

§ 06 — Ask a question

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