Other Business Loans

For businesses that have not been able to obtain the desired level of capital to grow and expand, Lone Star works with an affiliate organization ( Houston Business Development, Inc.) to offer affordable small business loans structured to meet your specific needs. Loans up to $350,000 for working capital, furniture & fixtures, equipment and real estate are available for eligible businesses.


  • Must be a legally established for profit or non-profit business located in Houston
  • Sound financial position and reasonable personal support for the project
  • Reasonable assurance of repayment, based on past and projected earnings
  • Satisfactory credit history and personal character
  • Must be able to meet job creation goals of one (1) job created per $35,000 borrowed
  • Certain types of businesses, e.g., adult entertainment, selling alcoholic beverages, etc., are ineligible to participate in the loan programs.

Terms & Conditions

  • Fixed, below-market rates as low as 5% determined on a case-by-case basis
  • Loan proceeds can be used for working capital, furniture and fixtures, equipment and real estate
  • Terms are available up to 25 years based on the useful life of the asset
  • $75 Direct Loan Application Fee and $250 Tandem Loan Application Fee; 1% origination fee
  • No prepayment penalties

Other Program Features

  • Must have sufficient collateral (unencumbered, tangible assets) to secure the proposed loan
  • Participating commercial lender required to match loans larger than $350,000
  • Principals having 20% or more ownership are required to personally guarantee the loan
  • Start-up businesses and/or companies that have no reported earnings must submit a detailed business plan with projections and underlying assumptions
  • Borrower has two years from funding to create the required jobs.


To Learn more about the available Small Business loans, please visit the HBDi website at www.hbdi.org or contact a loan officer at (713) 845-2400.

Effective Interest rate as of

AUGUST 6.53%