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Best Small Business Loans for Women

Women face lots of challenges in their journey to business success and financial breakthrough. From having problems getting licensed to unfair competition and discrimination when hiring, it can get a little hard for them.


Even more, women face lots of difficulties sourcing financing for their businesses. They are less likely to be financed by banks and other lenders compared to their male counterparts if the reports by the Federal Reserve are anything to go by.


However, women-owned small businesses can still access some funding to bridge their financial gap. Lots of government-backed programs and chosen lenders have exciting loan products for women-owned businesses.


In this article, we’ll explore the best small business loans for women and tell you how you can guarantee your approval.

  • Credit Scores
  • 10.10 - 79.80%
  • 600
  • 9.00 - 99.00%
  • 600
SBA Lenders
  • Starting at 5.5%
  • 620
  • APR range
  • Fees
  • Terms
  • Amounth
  • Unemployment protection
Bank 1
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No
Bank 2
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No
Bank 3
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No

Table of Contents

How Small Business Loans for Women work?

As the name suggests, small business loans for women are meant for women entrepreneurs looking for financing to kick start, expand or run their businesses. These loans are often issued by banks.


But, presently, many private lenders and financial institutions have also come forward to help finance businesses owned by women. Most of these, partner with the federal government and non-profit organizations.


Most of these loans must be repaid. After all, they are not so different from other business loans, except for the fact that they are meant for women-owned businesses.


But, some are more of grants than actual loans. That implies that their repayment terms could be more flexible and they tend to attract lower rates.


It takes lots of time and effort to get these loans, however, it’s worth every effort.


The loans have a wide range of uses. 

Hot Tip:

You can use them for day-to-day business expenses like paying rent, salaries and adding stock.

Types of small business loans for women

Loans meant specifically meant for women-owned small businesses may be a little hard to come by. And most lenders, even those offering small business loans hardly offer them. However, women entrepreneurs can tap into any of the following loan products;


  • SBA loans – these are mainly offered to established businesses with a good financial base. Online banks and online lenders are the main SBA loan lenders. However, other financial institutions are offering them. Women entrepreneurs should mainly target Small Administration loans backed by the Federal Government. Women entrepreneurs applying for these loans should be sole owners or at least own half of their businesses.


  • Bank loans – banks are known to be among the biggest lenders of Small Business loans. And, these are often cheap. However, they have the toughest eligibility requirements. These are hardly met by businesses that are just starting, affecting their average approval rate. However, this shouldn’t scare you. There is always a bank somewhere offering business loans with more friendly terms.


  • Online loans – online lenders also make the list of suitable small business loan lenders. Online lenders are known for more friendly terms and faster loan approval. Most will offer you a loan with a credit score of even below 500. You’ll want to look into online loans if your business is just starting, and if you have a poor credit profile. And, apart from loans, online lenders also offer multiple types of financing including lines of credit and invoice financing. Online loans are also highly convenient. Since the application is online, you can apply for a line from the comfort of your couch. However, on the flip side, these loans often attract higher borrowing costs.


  • Microloans – these are often offered by non-profit organizations. Microloans are an excellent option for entrepreneurs who qualify for neither bank loans nor online loans. They are also best for filling small business financial gaps.


  • Small business grants for women – apart from debt financing, women business owners have an alternative for business grants. Grants are not debts, so you won’t need to repay them. However, most grants have stricter qualification requirements. You need to prove beyond a reasonable doubt to the lenders that the funds are meant for a worthy course. The good thing about grants is there are some designed specifically for women-owned businesses.

Business loans for minority (Women)

Minority funding has been available for the longest time from different lenders and private and federal institutions. Traditional institutions have, however, been having tougher and stricter approval process, at least tougher than it is with other lenders.


Factors like poor credit profiles, limited banking transactions, and gender bias have made it hard for women business owners to get funding in these institutions.


However, the increase in gender awareness has seen these lenders soften up. Plus, it has also seen the rise of many new lenders offering business loans for women. Such include online lenders and other non-profit organizations.


Additionally, the minority can explore the following alternative funding;


  • SBA 8(a) – these programs aren’t meant to offer loans. Instead, it’s a certification meant for small businesses interested in Government tenders to boost their chances of success of their bids. But to qualify, the business must be under the control of anybody who fits in the minority category (economically and socially disadvantaged). That includes veterans and women.


  • Small business grants – these are mostly offered by the Government and private institutions to minority-owned businesses. Their terms and criteria for approval vary from one region to another


  • Free community resources – Minority Business Development Agencies are available in most regions. They offer not only financial support, but access to information, networking, and mentorship opportunities.

SBA Small Business Loans for Women

This is among the best sources of financing for not only small businesses but all businesses for that matter. They feature some of the most competitive interest rates, flexible repayment terms. And, you can also SBA loans for any purpose.


However, there are no SBA loans meant exclusively for women. However, women entrepreneurs can still access them.


The loans are SBA-backed. The loans are a product of lenders and banks. Failure to repay the loan will have the SBA subsidizing part of it. This is the main reason why most SBA lenders prefer working with small businesses.


SBA loans are, therefore excellent financing option for women-owned businesses that can qualify for the same. The low-interest rates and the longer repayment periods of up to 7 years, or more, will definitely come in handy.


SBA loans are also accompanied by multiple financing programs that can accommodate the needs of multiple business types. For instance, the SBA microloan program allows start-up business owners to borrow up to $50,000.


There’s also the SBA 7(a) program that offers business owners working capital. However, the loans are available for businesses that have been operational for several years, usually 2 years.


Lastly, there’s the SBA 504 providing funds to finance equipment and real estate purchase.


So how do you qualify? First off, find a good lender. Wells Fargo is the most notable name in this category. Find out what their requirements are, including credit score and the revenue requirement. Do the required paperwork and wait for the lender’s approval.

Hot Tip:

You could use the funds to purchase a new asset.

Benefits of Small Business Loans for Women

You stand to enjoy the following benefits by going for small business loans for women;


  • Wide-range loan limits – different businesses have different financial needs. the wider the financial gap in your business, the more funds you’ll need. You can apply for up to $5,000,000, or more with small businesses for women.


  • Longer loan terms – the longest small business loans have repayment terms of up to 25 years. Such give you ample time to clear your loan without actually feeling the pinch. The repayment amounts are often low and manageable.


  • Competitive interest rates – most small business loans for women are attracted to lower interest rates. This makes them a cheaper option compared to traditional bank loans and other forms of business financing known to attract higher rates and loan fees.


  • Favorable eligibility requirements – most small business loans for women have more friendly loan requirements compared to other traditional loan products. For this reason, you can apply and qualify for a small business loan for women with a somewhat low credit score. You can also negotiate with your lender concerning business revenue requirements and how long your business has been in operation.


  • Faster loan approval – How long the lender takes to wire your funds to you is crucial, especially if the funds were meant for urgent use in the business. Most small business loans for women lenders, especially online lenders who wire your funds in under 24 hours.

Frequently Asked Questions (FAQ)

First off, evaluate your business’s annual revenue, credit score, and time of operation. Once these are in order, proceed to find a suitable lender. While looking for one, prioritize interest rates, loan requirements, loan limits, and repayments. When you find a lender with policies that conform with your financial goals, submit a formal application.

You (the borrower) must have an existing business, or planning to have one. The sole owner or, the owning at least 50% of the business must be female. You should also have a credit score above 650 to improve your chances

to high-fee lenders.

Small business loans for women are available in banks, online lenders, and credit unions. For extra convenience, online lenders will do. With such, you can apply for a loan and get approved from the comfort of your living room.

Most online lenders will offer you a loan regardless of your credit score. However, they are prone to higher rates and loan charges. Such make more sense with short-term and emergency cash needs.

You can borrow up to $5,000,000, or more depending on your annual revenue, credit score, duration the business has existed, and your relationship with the lender. The exact loan product will also determine how much you borrow.

Personal loan guaranteed approval

Of course, there are also personal loans with guaranteed approval, and borrowers who seek this kind of credit would typically face no hassle in their application. Lenders of this loan type will allow you to borrow money regardless of your credit history or score and without collateral.


This is also called payday loans, fast cash, deferred deposits, low credit loans, or cash advances, and the standard range of the amount you can borrow is $350 to $1,500.

You can benefit from guaranteed personal loans if you happen to run short on a few cash and need to pay for something urgent.

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