Loan Program Summary

An applicant for a TRC loan must complete the appropriate documentation and/or business plan, repayment plan, and a credit application. Applicants are required to work through their local small business development centers to prepare a commercial loan application package.

Loan Products

TRC will offer loans for business start-ups and business expansions. Loans for commercial real estate as part of the business will also be considered.

Loan Territory

A rural area includes all territory that is not within the outer boundary of any city having a population of one hundred thousand or more.

Loan Eligibility

Applicants must demonstrate a projected cash flow, or in the case of an expansion, a historic cash flow.

Applicants must be unable to qualify or obtain a loan from a traditional source.

The purpose of the loans may include equipment, working capital, and real estate.

Loan Terms and Conditions

Interest rates may be adjusted on an individual basis based on the level of risk and feasibility of the project however, the interest rates will generally be set at prime +3 %.

Terms of loans will range from 5-7 years with real estate loans considered for a 15-year term.

A borrower should be prepared to inject 15% of the overall project. Loan costs and fees may be included as part of the 15% injection.

A condition of loan approval may include quarterly financial statements, monthly portfolio reports and any other documentation or business-training program deemed necessary by the Board or staff of TRC.

A $250.00 loan application fee must be included with any application submitted for review.


Underwriting Criteria


An applicant must disclose if he or she has been convicted of a crime, other than a traffic ticket, or is currently under indictment for a felony crime.

Credit History

All questionable credit reports must be explained in detail, issues must be resolved prior to being considered for a loan and pending loans must be current. A bankruptcy must be followed by 2 years good credit before being considered for a loan from TRC.


Applicant must be able to display sufficient experience in the proposed business, management experience or capabilities, and sufficient cash flow projections to meet all projected expenses.


Applicants must provide 100% collateral on a loan. TRC reserves the rights to make exceptions if other factors such as credit history, capability, and/or character are exceptional.

Loan Structure

Approved loans will be structured for a period of 5-7 years, depending on the individual borrower and projected cash flows. Real estate notes may be structured for up to 15 years.

TRC retains complete discretion in determining the approval and rejection of loan requests. These decisions are made based upon established underwriting criteria as well as well as TRC’s portfolio management policies. As a result of continuously changing circumstances, TRCs ability to approve any particular loan request may vary from time to time.

For any questions or additional information please contact Sandra Tenorio, Executive Director, by e-mail at or by telephone at 512-312-9029 or 1-800-787-2589.
Texas Rural Communities, Inc.
Loan Program Summary