Business financing in Young County.

Small business financing is money you borrow — or sometimes receive as a grant — to start, run, or grow a business. It covers a wide range of needs: buying tools or equipment, covering payroll during a slow season, purchasing a commercial property, or bridging a gap between a job's completion and the client's payment.

The most common types of financing available to small businesses and solo contractors in Young County include:

• **Term loans** — A lump sum you repay over a set period with regular payments.

• **Lines of credit** — A revolving pool of funds you draw from and repay as needed, similar to a credit card but usually at much lower rates.

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

• **Microloans** — Smaller loans, often $500–$50,000, offered by CDFIs and nonprofits to borrowers who may not qualify at a traditional bank.

• **SBA-guaranteed loans** — Loans made by local lenders and backed by the U.S. Small Business Administration, which reduces risk for the lender and often means better terms for you.

• **Grants** — Free money from government agencies or nonprofits, usually tied to specific purposes like rural development, minority business growth, or disaster recovery.

Understanding which type fits your situation is the first step. There is no single right answer — the best financing is the one you can comfortably repay while still running your business.

Young County is a rural, agriculture-driven community in North Central Texas, anchored by the city of Graham. The local economy includes oil and gas services, ranching, agriculture, construction trades, and small retail and service businesses. Financing options here are shaped by that reality.

**General eligibility considerations:**

• **Business size** — Most local and SBA-backed programs target businesses with fewer than 500 employees, though many local lenders focus on sole proprietors and businesses with under 20 employees.

• **Time in business** — Traditional banks often want 2+ years of operating history. CDFIs and microloan programs may work with businesses that are 6–12 months old, or even startups with a solid plan.

• **Credit score** — Banks typically look for scores of 650 or higher. Community lenders and CDFIs often have more flexible standards and will look at the whole picture — character, cash flow, community ties — not just a number.

• **ITIN holders** — If you do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN), you are not excluded. Several CDFIs and credit unions in the broader region work specifically with ITIN-holding borrowers. See Section 4 for specifics.

• **Rural status** — Young County's rural designation opens doors to USDA Business & Industry loan programs and rural development grants that urban businesses cannot access.

• **Agricultural connections** — Ranchers, farm-equipment repair shops, and ag-supply businesses may qualify for specialized USDA Farm Service Agency (FSA) operating loans or beginning farmer programs.

If you are unsure whether you qualify, that uncertainty itself is a reason to reach out to a local CDFI or the SBA district office before assuming the answer is no.

Every lender has its own checklist, but the following documents come up repeatedly. Gathering them early will make the process smoother and show lenders you are organized.

**For most loan applications:**

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

• ITIN or SSN documentation

• Business license or DBA registration from Young County or the State of Texas

• Last 2–3 years of personal tax returns (or business tax returns if you have them)

• Last 3–6 months of bank statements (personal and/or business)

• A simple profit-and-loss statement or a record of income and expenses

• List of existing debts (credit cards, loans, equipment payments)

**For larger or SBA-backed loans, you may also need:**

• A written business plan with financial projections

• Business tax returns for 2–3 years

• Accounts receivable and payable aging reports

• Collateral documentation (deed, vehicle title, equipment appraisal)

• Articles of incorporation or LLC operating agreement, if applicable

**For ITIN borrowers:**

• ITIN letter from the IRS

• Proof of residency (utility bill, lease agreement)

• Additional months of bank statements may be requested

**Tip:** Keep digital copies of everything in a folder on your phone or computer. Lenders often ask for documents more than once during processing, and having them ready saves time.