ENBUSINESS CREDIT, CAPITAL SPENDING & BORROWER PLANNING · OCTOBER 27, 2026
Texas Firms Report Persistent Credit Difficulty and Higher Financing Costs
Dallas Fed survey results show 15% of responding Texas firms reported at least some difficulty obtaining short-term credit, 16% reported difficulty with long-term credit, and 35.3% said available credit costs increased over the prior year.
What the Dallas Fed survey found
Source publication date: October 26, 2026. The Federal Reserve Bank of Dallas published supplemental credit-condition questions from its Texas Business Outlook Surveys. Data were collected October 13–21 from 283 Texas business executives. Fifteen percent said their business had at least some difficulty obtaining financing for short-term uses such as payroll or inventory, while 16% reported at least some difficulty obtaining financing for long-term uses such as capital expenditures.
- 0115% reported short-term difficulty
- 0216% reported long-term difficulty
- 03Higher cost changed operating decisions
Reported difficulty remained above pre-pandemic readings
The shares reporting short- and long-term difficulty were unchanged from one year earlier and below their 2023 peaks, but the Dallas Fed said both remained somewhat elevated relative to 2018–19. These are regional diffusion-style survey responses from participating firms, not approval rates, loan-volume data, or a national measure. Industry, company size, lender, collateral, leverage, cash flow, and transaction structure can produce materially different outcomes.
Higher credit cost affected investment and operating choices
Among all respondents, 35.3% said the cost of available credit increased over the prior twelve months, 18.0% reported no change, 0.4% reported a decrease, and 46.3% said the question was not applicable. Among firms reporting higher costs, more than half increased reliance on internal funds, 40% reduced capital expenditures, and just over one-quarter reduced hiring or increased prices. Those responses show tradeoffs, not a prescribed strategy.
Practical borrower takeaway
Separate the amount and timing of short-term operating needs from long-lived capital spending, then match each use to an appropriate facility and repayment source. Prepare current statements, tax returns, debt schedule, bank activity, aging reports, collateral detail, ownership records, sources and uses, and downside cases. Compare rate, fees, amortization, maturity, covenants, collateral, reporting, and prepayment terms—not payment alone—and preserve liquidity if approval or closing takes longer than expected.
Borrowers should begin financing preparation early, quantify the exact short- and long-term need, document repayment and collateral, compare structures, and protect liquidity if higher credit costs force more reliance on internal funds.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.