Complete Guide to Texas Lending Licenses 

For businesses looking to offer loan and credit products in Texas, obtaining a lending license is the key to getting started. As is the case with California and New York, Texas has its own requirements and application process for becoming a licensed lender. 

But what are the requirements? And where do business owners apply?

In this post, we’ll walk you through the requirements for a Texas Regulated Lending Licence and how to apply for one as well as an alternative option for lending without a license. Read on to learn more!

Texas Regulated Lending Licenses

According to the Texas Office of Consumer Credit Commissioner (OCCC), non-depository lenders (those who deal in unsecured loans) who transact and/or collect loans with an interest rate greater than 10% must be licensed by the OCCC.

Texas Regulated Lender License Requirements

To apply and be eligible for a Regulated Lending License in the state of Texas, a potential lender must meet a number of requirements. 

The following items are required for all Regulated Lending License applicants:

• Statement of Experience (Form)
• Business Operation Plan (Form)
• Financial Statement (Form)
• Supporting financial information (Form AMD 18 & ADM 19)
• Bank Confirmation (Form)
• Loan Document *
• License application fee of $800 (as of 01/2020)
• Statutory agent **
• Statement of Record (address of where the business records will be stored)
• Fingerprints ***

Applications must also include Principal Party Information: 

• Personal Affidavit
• Personal Employment History (10 years of consecutive data prior to the application submission date)
• Personal Questionnaire

Principle Party Information is processed/entered in ALECS.

* Loan documents not already approved by the OCCC must undergo a review with Plain Language for approval prior to the approval of a license

**  A Texas resident and an address different from the proposed business location 

*** Receipt received at the IDENTOGO office) Your reviewer will send you instructions to schedule & complete your fingerprints.

Additional Requirements for LLCs, Corporations, and LTDs

For LLCs, corporations, and LTDs, there are three additional requirements:

• Articles of Incorporation from the Texas Secretary of State – Certificate of Formation, Application for Registration, or a Certificate of Authority. A Certificate of Filing will not meet this requirement.  

• Certificate of Good Standing – Now known as a Franchise Tax Account Status from the Texas Comptroller’s Office. Upload a screenshot of the results with an “As of” date of no more than 3 months prior to the application submission date and an “Active” status.  

• Statement of Ownership/Management – If a parent company holds part or whole ownership of the applying entity, upload a statement or diagram describing each level of ownership/management of the parent company(ies) up to a natural person (not another entity)

Other Additional Requirements

For certain types of organizations applying for a Regulated Lending License in Texas, there are additional requirements:

• Trusts: The instrument that created the Trust & Trust Agreement 
• General Partnerships: Partnership Agreement, signed & dated by all partners 
• Estates: The instrument that established the Estate

For a complete list of the Regulated Lending License requirements in Texas, check out this checklist. 

How to Apply for a Regulated Lending License in Texas

Potential lenders who want to be licensed to lend in the state of Texas must create an account using ALECS and submit a licensed lender application. The entirety of the lending application process, as well as payment of fees, is done through this online portal. 

NOTE: It is recommended that applicants use either Chrome or Firefox browsers to avoid system errors. 

Once an application is completed and submitted, it will be reviewed by the ALECS administrators and the applicant may receive requests for additional information that will need to be submitted through the portal. Generally, application reviews are completed within 60 days.

Texas Regulated Lending License Fees

The state of Texas outlines the following schedule of fees for a Regulated Lending License:

• Applications fee – $800 (per application filing)
• Investigation fee – $200 (per application filing)
• Assessment fee – $600 **** 

**** An assessment fee not to exceed $600 per active license and not to exceed $250 per inactive license is assessed each time an application for a new license is filed. This assessment fee will be refunded if the application is not approved.

Other State Licenses

If you’re a founder, you’l also want to be planning for future licenses in addition to the Texas state license. Check out our guides to other NMLS state license procedures, including:

• California
• New Jersey

Final Thoughts

Obtaining a lending license is a crucial step for businesses looking to offer loan and credit products in Texas. The state has its own set of requirements and application process for becoming a licensed lender, and potential lenders must meet several criteria, including providing a statement of experience, a business operation plan, financial statements, supporting financial information, and fingerprints. LLCs, corporations, and LTDs also have additional requirements they must meet to qualify. Lenders who want to apply for a Regulated Lending License in Texas must create an account using ALECS and submit their application online. While the application process can take up to 60 days, it is an essential step for any business that wants to offer loans in Texas.

Texas Lending License FAQ

Below, you’ll find some common questions about commercial lending licenses in Texas and the answers to those questions: 

What is a Texas Regulated Lending License?

A Texas Regulated Lending License is required for non-depository lenders who deal in unsecured loans and transact and/or collect loans with an interest rate greater than 10%.

Who needs a Texas Regulated Lending License?

Businesses that offer loan and credit products in Texas, such as payday lenders, title lenders, and other types of lenders, need a Texas Regulated Lending License to operate legally.

What are the requirements to obtain a Texas Regulated Lending License?

To apply and be eligible for a Texas Regulated Lending License, potential lenders must meet a number of requirements, including providing financial statements, fingerprints, and other supporting financial information.

How long does it take to obtain a Texas Regulated Lending License?

The application process can take up to 60 days, as the applicant may receive requests for additional information that will need to be submitted through the portal.

What are the fees associated with obtaining a Texas Regulated Lending License?

The fees for a Texas Regulated Lending License include an application fee of $800, an investigation fee of $200, and an assessment fee of up to $600 per active license. This assessment fee will be refunded if the application is not approved.

Frank Gogol

A seasoned SEO expert, Frank has a long history of working with and for startups. Starting in mid-2018, Frank served as the SEO Strategist for Stilt, a fintech startup that provided fair loans for immigrants in the US and other underserved markets. While with the company, he scaled site traffic from zero to more than 1.5 million unique visits per month, driving the bulk of the company’s lead generation until it was acquired by J.G. Wentworth in December 2022. As employee #5 at Stilt, Frank was witness to, and part of, the successful building and sale of a fintech company, uniquely positioning him to create content for founders about all things startups.

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