Term Loans on the Coastal Bend

A curve along the Gulf

The Texas Coastal Bend is named for the curve of the coast along the Gulf of Mexico. Its largest city is Corpus Christi, and it includes the Nueces Estuary (Corpus Christi Bay), the Mission-Aransas Estuary (Aransas Bay) and part of Laguna Madre, with barrier islands including North Padre Island, Mustang Island and San Jose Island. This page covers fourteen counties, from Nueces, San Patricio and Aransas to Victoria, Calhoun, Jackson and Matagorda.

Water, wind and weather are part of the business plan here. Fishing and charter operators, marinas, restaurants, hotels and vacation rentals, marine and industrial contractors, and ordinary main-street shops all live with the same coastline.

Storm season changes the math on a purchase

The Atlantic hurricane season runs June 1 to November 30. A business that plans a major purchase should ask what happens if a storm closes it for a week at the wrong moment. For property owners who cannot get windstorm and hail cover in the regular market, the Texas Windstorm Insurance Association is a not-for-profit insurer for that coverage. Insurance costs are a real item in a coastal budget and belong in any payback calculation.

Questions to answer before you borrow a lump sum

1. Is the purchase a repair of something you already depend on, or an expansion? Repairs have a clearer payback.
2. If the business is closed for a week of storm, can it still make the first payments?
3. Does the purchase earn in the off-season, or only during the busy months?
4. Is insurance for the new asset priced into the plan?
5. Is the quote in hand, with a date?

Examples, with no promises

• A charter or fishing operator replacing an engine or adding a vessel before the busy season.
• A restaurant or hotel renovating before peak visitor months.
• A marine or industrial contractor buying a truck or trailer for a larger contract.
• A retailer in a county seat adding a second location or a delivery vehicle.

These are the kinds of projects owners bring to a term loan, not outcomes anyone should expect.

Timing the purchase against the calendar

Coastal owners often decide a purchase in the slow months, when there is time to think, and need the asset in place before the busy months begin. That sequencing is a good use of a lump sum. Work backward from the date the asset needs to be earning: delivery time, installation or outfitting, and any training. Add a buffer for weather delays. If the buffer pushes the start of revenue past the point where the first payments are due, size the request to include that gap, or choose a different date.

The funding facts

The application takes about five minutes and uses a soft credit pull. Funding from $25,000 to $5,000,000 can arrive in as little as 24 hours. Sole proprietors can apply.