Small business loan resources for women: Where to find them and how to qualify.

- Launch their startup
- Develop new product lines
- Open a new location or renovate an existing one
- Buy essential business equipment or inventory
- Hire and train new staff
- Level up their advertising and marketing strategies
- Cover payroll, insurance premiums, and other day-to-day expenses
1. Small Business Administration loans and programs
While the SBA doesn't issue loans directly, it does partner with lenders to guarantee loans for small businesses, including women-owned businesses. Some of the SBA-guaranteed business loans options include:
- 7(a) loans: The 7(a) loan program is the SBA's primary program for providing financial assistance to small businesses, and offers up to $5 million in funding.
- Microloans: If you have smaller capital needs, a microloan could be a good fit. The SBA's microloan program offers up to $50,000 in loan funding to small businesses seeking capital to get started or expand. The interest rates for microloans vary, but are generally between 8–13%.
2. Online business loans

- Term loans
- Inventory and purchase order financing
- Accounts receivable financing
- Equipment financing
3. Other microloan options
In addition to SBA microloans, organizations like private organizations, alternative lenders, smaller state banks, and credit unions also offer microloans for women-owned businesses.
Microloan amounts are smaller and repayment terms are different for every lender. Some lenders offer microloans strictly for startups, while others are open to established businesses.
Microloans also tend to offer more leniency with the credit score because they’re willing to consider alternative forms of collateral. That said, microloans also typically come with higher interest rates.
Keep in mind: Some microlenders may limit loans to certain types of small businesses. You might be able to get a loan to open a daycare, for instance, but not to buy kitchen equipment for the food truck business you're about to take to the streets.
You can locate a microlender in your area using the Opportunity Finance Network Community Financial Development Institution (CDFI) locator.
How to help increase your chances of qualifying for a business loan.

Knowing what lenders are looking for is a good start. Things that can influence business loan decisions include:
- Personal and business credit scores
- Length of time in business
- Annual revenues
- Financial statements
- Cash assets and collateral
- Business debts
- Business and personal tax returns
- Capital needs
- Business plans
Weigh your loan options carefully.
Understanding your options for small business loans is a good first step, but it's just as important to know how to compare them. Business loans vary, just like lenders do, and the loan terms and qualification requirements can differ greatly.
As you research different loan options, a few things to pay attention to include:
- Minimum and maximum loan amount offered.
- Loan repayment terms.
- APR range and whether the lender charges a fixed or variable rate.
- Minimum qualification requirements for credit score, revenues, and time in business.
- Loan fees, including origination fees or prepayment penalties.
- Approval and funding speed.
Is a business loan right for you?
Measuring the return on investment can help you decide if it's the right move. For example, borrowing $100,000 to develop a new product could yield a stellar ROI if that product increases your revenues by 25% annually. But borrowing money to buy equipment may not be worth it if you're going to have to replace it or upgrade it before the loan is repaid.
Also, take a good look at your budget to make sure you can handle loan repayments without it being a burden on your cash flow. The goal is to get ahead with a loan, not fall behind.
Finally, consider whether something other than a loan makes sense for funding your business. For example, consider:
- Bootstrapping your business from your savings
- Asking friends and family to help with funding
- Looking into business grants for women business owners, such as the Tory Burch Fellows Program, Cartier Women's Initiative Award, the Amber Grant, and the National Association for Self-Employed Growth Grants
- Fundraising for your business through a crowdfunding platform. iFundWomen, for example, is a crowdfunding platform focused on helping female entrepreneurs connect with funding
- Women-centric business accelerators and incubators, such as the Women's Startup Lab, AlphaLab, and Y Combinator
- Venture capital funding or angel investing - a list of angel investors investing in female founders is available at 37 Angels
Each alternative has its pros and cons. Asking your friends and family for money means you may not pay interest on what you borrow, but, if you don't pay it back, you risk souring the relationship. And with venture capital funding or angel investing, you're typically giving up an ownership share in your business in exchange for funding.
If you're interested in learning more about some of these options, the National Women's Business Council offers resources on financing for women business owners. Additionally, the Association of Women’s Business Centers provides access to a national network of women’s business centers, many of who lend to women-owned small businesses.
The great thing about small business loans for women and small business funding, in general, is that you don't have to adhere to a one-size-fits-all mold. You can pick and choose what works best for your business. And if it's a loan – either from the SBA, an online lender, a microlender, traditional lender at a bank, etc. – doing your homework beforehand means you can approach business borrowing with confidence.
1 Women Entrepreneurs, U.S. Senate Committee on Small Business & Entrepreneurship.
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