Business financing in Stephens County.

Business financing is money you borrow — or receive as a grant — to start, run, or grow a business. It is different from a personal loan: the money is meant for business purposes like buying equipment, covering payroll, purchasing inventory, or investing in a rental property.

The most common types you will encounter in Stephens County include:

• **Term loans** — A lump sum you repay in fixed monthly payments over a set period. Good for buying equipment or making a one-time investment.

• **Lines of credit** — A revolving pool of money you draw from and repay as needed. Useful for covering slow months or seasonal gaps.

• **SBA-backed loans** — Loans made by a local bank or credit union, but partially guaranteed by the U.S. Small Business Administration. Because the government reduces the lender's risk, you may qualify with less collateral or a shorter credit history.

• **Microloans** — Small loans, often $5,000–$50,000, offered by nonprofit lenders called CDFIs (Community Development Financial Institutions). These are especially useful for newer businesses or borrowers without a perfect credit score.

• **Equipment financing** — A loan or lease tied specifically to a piece of equipment; the equipment itself serves as collateral.

• **Commercial real estate loans** — Used to purchase or renovate a building you plan to operate from or rent out.

All of these options are available to qualifying business owners in Stephens County. You do not need to be a large company to apply.

Stephens County's economy centers on oil and gas services, ranching and agriculture, trucking, construction trades, and local retail. Lenders who work in this region understand these industries and will recognize your business model.

**General eligibility factors lenders consider:**

• Time in business (many lenders prefer at least 1–2 years, but CDFIs and microlenders work with startups)

• Personal and business credit scores (scores in the 580–640+ range can still qualify with the right lender)

• Annual revenue or projected revenue

• Whether you have collateral (equipment, land, a vehicle, or real estate)

• Your ability to repay — shown through bank statements, tax returns, or a solid business plan

**If you are an immigrant entrepreneur or do not have a Social Security number:** Several lenders in the broader West Texas region accept an ITIN (Individual Taxpayer Identification Number) instead of an SSN. Having an ITIN, filing your taxes, and maintaining a business bank account are the three most important steps you can take before applying.

**Solo contractors and self-employed workers:** You qualify as a business owner. An oil-field contractor, a cleaning service operator, a cattle rancher, or a part-time landlord can all apply for business financing. Schedule C filers and sole proprietors are welcome at most community lenders.

**Rural bonus:** Because Stephens County is a rural area, you may be eligible for USDA Business & Industry (B&I) loan guarantees and rural-focused grant programs that are not available in urban counties.

Every lender has its own checklist, but gathering these items before you apply will save you time at any institution:

**Personal documents:**

• Government-issued photo ID (passport, state ID, driver's license, or consular ID)

• ITIN or SSN

• Two years of personal federal tax returns (or one year if you are a startup)

• Proof of address (a utility bill or bank statement works)

**Business documents:**

• Business bank account statements — at least 3 months, ideally 12

• Two years of business tax returns (if you have been operating that long)

• Current profit-and-loss statement and balance sheet

• Business license or DBA registration (filed with Stephens County Clerk or the Texas Secretary of State)

• A brief business plan or written description of how you will use the loan and how you will repay it

• Any existing business debt schedules (what you already owe and to whom)

**For equipment or real estate loans:**

• Quote or invoice for the equipment, or a purchase contract for the property

• Appraisal (the lender will usually order this)

**Tip:** The Stephens County Clerk's office in Breckenridge can help you verify or register a DBA. The Texas Secretary of State website (sos.texas.gov) handles LLC and corporation filings online for a modest fee.