Prospects Improving For Houston Startups
by: Andrew Schneider, January 2, 2012 1:01:00 am
Paul Kellogg is a partner with the law firm of Hughes Watters Askanase. Kellogg expects twenty-twelve to be a good year for business startups in Houston. He points to the improving job and commercial real estate markets, as well as the low cost of living. But more than three years after financial markets collapsed, capital for new ventures remains scarce.
“Loans for small businesses are very tight. The requirements are tough. A lot of people are having to go back to the old-fashioned way of friends and family financing as your first round, and then when you have a proven track record, you can go to, you know, regular commercial lenders.”
Kellogg says banks are growing more comfortable lending to midsize companies, which he defines as those worth at least two million dollars.