Small Business Loans for Women

Where can women get small business loans?

Women can get small business loans from a variety of different places including banks, credit unions, and online lenders. Many small business loans are backed by the Small Business Administration. At PrimeRates, you can check offers for business loans from a variety of lenders. The power to compare offers without connecting with dozens of lenders independently can surely help you unlock some of the best offers.

Why do I need a small business loans for women?

Regardless of gender, small businesses often need loans to get started, grow, or cover emergency expenses. Oftentimes you can get a small business loan with no money down and minimal business history. Women specifically, may qualify for grants or special programs that allow more opportunity to secure funding. While lenders cannot discriminate based upon gender, the world can, unfortunately. The fight for women to truly be equal is alive. Start searching around and it will become so apparent how much support is available for women on the mission to own their own business.

How small business loans work

Small business loans work by awarding the recipient with a lump sum of cash that can be used for qualified business expenses and must be repaid over time. As a type of installment loan, repayment is split up into equal monthly payments over a set period of time known as a loan term or repayment period. Applications for small business loans are typically done online, although business owners can still apply in person through banks and other financial institutions. 

Types of small business loans for women

Female entrepreneurs have a variety of small business loans available to them:

• SBA loans: There are a number of different loan programs offered by the Small Business Administration including general small business 7(a) loans, microloans, Real Estate & Equipment (504) loans, disaster loans, and more. The SBA does not finance loans directly but rather guarantees loans that are generated through its nationwide network of lending partners.
• Business loans from online lenders: Alternatively, business owners can seek financing through online lenders . The minimum credit score required to obtain a loan from an online lender is typically lower than that of other financing sources, and funding of your loan typically takes place much faster than traditional loan methods. Visit PrimeRates today to check business loan offers from top national lenders. 
• Business loans from banks: Traditionally, this is how most small business loans were obtained. Nearly every major banking chain offers small business loans. You will need to meet the financial institution’s lending requirements which typically includes a high credit score. Applying for a business loan through a large bank may take several weeks or months to get approved but can result in some of the lowest costs.
• Business loans from credit unions: When compared to large national banks, oftentimes credit unions can offer better rates, better deals, and more personalized service. Joining your local credit union as a member of the business community can have a whole host of perks for your business.
• Microloans:  If you are having trouble qualifying through other means, microloans can be a good option for entrepreneurial women. Microloans are generally in amounts of less than $50,000 and are typically offered by non-profit organizations like Accion, Opportunity Fund, and Grameen America. The SBA also offers microloans to qualified applicants.

Which option is best for you?

The loan that is best for you will depend on a variety of factors that are unique to your business and your financial situation.

However, SBA-backed loans come with a number of benefits to both the consumer and the lender that are hard to beat. In addition to being a good way to avoid predatory lenders, SBA-guaranteed loans generally have more competitive rates and fees, lower down payments, more flexible lending requirements, and are less likely to require collateral than other types of small business loans. Some SBA-backed loans even come with continuing education, counseling, and other resources designed to help you succeed in running your business. SBA loans help open up access to financing to those in the community who need it most.

Do grants exist for women small business owners?

In addition to small business loans, female entrepreneurs can also take advantage of a variety of unique grants geared towards women. A grant is money awarded that does not need to be repaid. They are usually distributed by government agencies, non-profit organizations, and private corporations.

• Amber grant: The Amber Grant is designed exclusively for women in business and provides a new recipient each month with $10,000 in grant money. Additional offerings include $2,000 mini-grants, a $10,000 non-profit grant, and a $25,000 annual grant. To apply for an Amber Grant, business owners must simply fill out the online application and share from the heart about your business.
• National Association for the Self-Employed: While not specifically for women entrepreneurs, NASE members can apply for a $4,000 business development grant through the NASE Growth Grants program. Grant applications are reviewed quarterly and evaluated on the basis of the potential impact of the grant and a review of the business need. Recipients must be active NASE members and provide a detailed business plan.
• The Girlboss Foundation Grant: Awards $15,000 grants twice a year to female entrepreneurs in the industries of art, fashion, music, and design. Winners also receive a feature mention on the Girlboss website, newsletter, and social media platforms.
  

How can I use a small business loan for women?

There are a number of ways that women can use the funds from their small business loan to launch, grow or enhance their business. From equipment upgrades and inventory purchases to marketing initiatives and staff expansion – the possibilities are endless.

Keep in mind that when you take out a loan for a specific purpose, such as a small business loan, you may need to provide proof of eligible expenses.

Can women with bad credit scores obtain a business loan?

Applicants with poor credit may still be able to obtain the funds they need for their business through a variety of different methods.

Women with bad credit scores can still obtain financing if they utilize the services of a cosigner or co-borrower who is willing to apply for the loan with them. A cosigner is an individual who agrees to be on the hook for repayment in the event that the original applicant defaults on the loan. The credit history and income of the cosigner is used for underwriting the loan rather than the information of the original applicant. Cosigners are typically a relative or other loved one who is willing to take on the legal risk of your financial obligations.

Another option is to apply for a loan through an online lender, which tend to be more lenient with their credit score requirements on their business loan offerings.

Lastly, business owners can seek out the funds they need through various grant programs. Grants are not based on your credit and do not need to be repaid.

Qualifications for women small business loans

Applying for a business loan is a bit different than applying for other types of financing. In order to consider your application for a small business loan, most lenders will want to see that you have a business plan, financial projections, relevant industry experience, and possibly even collateral to help secure your loan. Your credit score and other financial information will also be used to help make a lending decision. 

How to get a small business loans for women

The first step to getting a small business loan for women is to compare the different options available to you and decide where you want to apply. There are a variety of different loans and grant programs available to female entrepreneurs, each with their own unique qualifications and requirements. Undergoing a little bit of research beforehand will help you score the best deal for your business. Be prepared to submit information about your business such as a business plan, profit and loss statement, and other relevant information. 

To get started, visit PrimeRates. Within minutes you can find a business loan that can fast track your success without breaking the bank. Simply, complete the online form, check offers, and choose the one that is best for you. After finalizing your loan, you can receive funds in as little as one business day.

Women entrepreneurs. . . unlock the door to success. Apply for a business loan today!