The Best Business Loans for Women Entrepreneurs

The Best Business Loans for Women Entrepreneurs

Advertiser & Editorial Disclosure

The impact that women have on the U.S. market is growing every year. Consider these statistics from the National Association of Women Business Owners:

  • Over 11.6 million firms are owned by women
  • Woman-owned businesses employ almost 9 million workers
  • In 2017, these same businesses generated $1.7 trillion in revenue
  • 39% of all privately-held firms in the U.S. are women-owned

Despite the gains women are making in the economy, there’s room for improvement from female business owners. That’s why many loan programs have made a concerted effort to get women to apply, and some have set aside funds for women, minorities, and those in underrepresented groups.

Given how these loans can take months to get approval, it’s best to research long before you need access to capital. Remember, loans – unlike grants – need to be paid back, so you’ll need to demonstrate your ability to pay and provide full documentation of your creditworthiness.

Note that there generally aren’t “women loans,” and you won’t find the government or other entities offering loans for only women. Instead, you’ll see that there are places on the application to indicate your personal information, and this may be used to approve you for funds that have been set aside specifically for traditionally disadvantaged groups – like women. The loan process, name of the loan, and the application won’t look different for a woman than any other applicant.

Here are some women-owned business loans you can start looking into now, so you’re ready to go when it’s time to fund your next stage of business growth.

1. Small Business Administration Lender Match — 7(a) Small Business Loan

Available to all small businesses that meet certain guidelines, these SBA loans are served through a program called Lender Match. Put in your info, and you’ll be contacted by a willing bank or lender that meets your needs and is best suited to provide the type of funding you’re looking for. You’ll know if you qualify to continue the process of meeting with a lender within two days. Not everyone who signs up will qualify.

To be eligible for SBA loans, you must be a U.S.-based, for-profit business of a certain size that has an owner that is materially invested in the business. SBA loans require the businesses to have exhausted all other methods of funding first, such as personal assets and traditional bank loans. You’ll also need good to excellent personal credit and business history. Annual revenue matters, as well.

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2. Rural Business and Industrial Loans

According to the GovLoans.gov website, “The purpose of the Business & Industrial (B&I) Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.”

This is technically a loan for cooperative agencies (profit or non-profit), an individual, a tribe, or a public body. To qualify your business or organization must serve a rural area and:

  • Hire workers
  • Improve the economic or environmental climate around you
  • Promote clean water for aquaculture, or
  • Promote renewable energy solutions

To apply for this lending opportunity, visit the USDA Rural Development office near you.

3. USDA (Farm Services Administration – FSA) Women Farmers and Ranchers

The FSA has a renewed focus on giving even more money to underserved farmers and ranchers, through several programs. These are open to most small farmers, but they do put a focus on providing funds to the underserved – including women. These long-term financing programs include:

The best way to know which program best suits your farm or agricultural business is to partner with your local FSA office. They can point you in the right direction for your business size, goals, and method of farming (organic, for example.) 

4. SBA 8(a) Business Development Program

While not specifically aimed at women (and not a loan), this program offers guidance for “small businesses owned by socially and economically disadvantaged people or entities.” Presumably, this includes women, and the program is marketed to women’s business groups as well as minorities. To apply for an 8(a) status, you’ll want to go through the certification site (just be sure to have your new SAM number first.)

Once accepted and given 8(a) status, you’ll enjoy many benefits, such as:

Eligibility to compete for set-aside government contracts, mentoring, access to a business opportunity specialist, and assistance with various business specialties such as marketing and technology.

To get started with any of the SBA programs start by contacting your local office. Businesses who work alongside their local chapter have better results in getting funding and resources than those who don’t. This is a good option for even those with less-than-perfect credit who need advice on business ownership.

5. P2P Loans

One last option for borrowing is by getting money from other eager investors. Peer-to-peer loans have come along way since they first hit the scene almost a decade ago. Whether you choose to look for money through a more service-minded platform like Kiva or pick one that’s aimed to serve a larger business landscape, getting funds directly from individual lenders is easier than it has ever been before. They are open to a wider range of credit scores, those with only established personal credit, and those with bad credit.

6. Private Small Business Loans

Finally, there is a beautiful world of private, for-profit businesses that will offer financing to women. Like most loans, they will need you to have good to excellent credit, a reliable business history, a business plan for how you will spend the loans, and projection of profits to show that you can pay the money back. Collateral may be required, as well.

Where do you find these small business loans for women? You might want to start with the banks and financial institutions you already do business with, such as your mortgage holder or auto lender. These traditional lenders have much of your information on file and already know you as a customer. They may sometimes knock a portion of a point from the interest rate of your business loan as a reward for your loyalty.

Another way is to search for online lenders, much like you would a credit card. Small business loans come in all sizes, from a few thousand dollars to $100,000 or more. Realistically, if your business is modest, young, and new to borrowing money, you’ll find a smaller amount easier to obtain. You may also consider term loans. As you show satisfactory progress in paying that back and raise your business and personal credit score, the doors of opportunity for more business financing options should open.

7. Kabbage 

Looking for a funding option that just takes your business stats into account? Kabbage may be for you. Not only do they have a simplified loan-approval process, but they look at your loan application from a data perspective, making it a great choice for anyone worried that they may be looked at differently due to discrimination. 

If you qualify, you may be able to choose from a number of term loans and business loans for women, as well as business lines of credit, which allow you to borrow not just once, but again and again. Like a credit card, you can continue to borrow against your limit, and pay it back in regular monthly payments. It’s one of the more flexible options for anyone hoping to solve cash flow issues – even if your credit needs work.  

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Grants for Women-Owned Businesses

Business loans for women may be more common and easier to get, but you shouldn’t give up hope of getting some of that free money just yet. It’s still worth looking into small business grants that are aimed at women and the general population who want to take their businesses to the next level.

8. Girlboss Foundation

This female-empowerment-focused group offers a $15,000 grant biannually, plus word-of-mouth buzz through its social platforms and website. Since 2014, it’s handed out over $130,000 to qualified women business owners. Check the site to see when the next round opens for women entrepreneurs!

9. Amber Grant

Could you be one of a dozen women who gets a $2,000 cash Amber Grant each year? If so, you’ll also get the chance to compete for the bigger grant of $25,000. You’ll need to pay $25 to apply for this grant, but with a reputation of handing out grants since 1998, it’s something to consider. Applications for this widely-recognized grant program are open until March each year, and winners are picked at the end of each calendar year.

10. AAUW Community Action Grants

Is there an option just for a non-profit organization? Of course, and the AAUW Community Action grant may be it! This award focuses on rewarding non-profits and programs that help women and girls in your immediate community. Administered by the American Association of University Women (AAUW), it’s designed to help elevate and empower women all over the country. If you have a project specifically designed to help K-12 or community colleges that promote STEM learning for women and girls, you’ll be given special consideration. Apply for these one or two-year grants and be one of the many women who have been helped by over $3.9 million in funding since its inception. 

11. Cartier Women’s Initiative

Open each June to women-owed, for-profit businesses around the world, the Cartier Women’s Initiative offers grants of $30,000 to $100,000. Female entrepreneurs should be prepared to spend a lot of time on the application process! Small business owners who win will be hosted at the annual conference and get one-on-one mentoring and support for years to come. 

12. Nav Small Business Grant

While not exclusively for women-owned businesses, the quarterly Nav Small Business Grant is a tremendous opportunity for a growing business. Applications can be submitted either through Facebook or LinkedIn, and applicants should provide a well-researched plan for how they would put the prize money to work in their business. First place winners receive $10,000 and a profile on Nav’s website.

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Angel Investors and Venture Capitalists Geared Towards Women

There’s another kind of funding to consider: angel investing and venture capitalism. These can sometimes get small business owners a much larger amount, without the same requirements as a traditional bank or credit union. Be prepared to market yourself in much the same way as you would when fundraising on crowdfunding platforms. You may also have to give up a little control of your company, as well as equity – depending on the type of funding you choose. 

Here are some options with an eye on developing women-owned businesses.

13. The Pink Ceiling

This business incubator is aimed at a business owned by women or that serve women. The “Pinkubator,” as it’s called, accepts pitches from small business owners on an ongoing basis, and the application form is quite simple. If Cindy and her team like what they see, you may be eligible to partner with her network for investors.

14. 37 Angels community of women investors

The 37 Angels community boasts a funding decision in four weeks after you fill out the form and do a 20-minute phone call to see if you’re a fit for their funding goals. If you earn a spot in the 8 to go through (out of 400), you can pitch to their investors. Each funded project gets between $50k and $150K from the network. Pitch sessions happen every other month for the female entrepreneurs to make their sale.

15. The Women’s Capital Connection

After a lengthy application and interview session, your business may be posted on a forum for all of the investor members of the Women’s Capital Connection to view. Interested investors will indicate interest, and you can go from there. The group works to provide high ROI for investors and access to early-stage financing for “high-potential women-led businesses and entrepreneurs.”

16. BELLE Capital USA

This female-focused angel investment group is specifically looking for early-stage U.S. businesses in underserved capital markets in the following industries:

  • digital/mobile/internet (IT)
  • technology-enabled products and services
  • life sciences/medical devices/health I.T. (Digital Health)
  • Cleantech

Other female entrepreneurs may be considered for financing. Pitches are accepted online.

17. Female Founders Fund

Driven by the belief that women make better entrepreneurs (but receive less overall funding), Female Founders Fund is actively looking to fund those big ideas from women-owned businesses. They focus on financing institutional seed-stage companies, but will also make small, supporting investments to small business owners outside these parameters. They are specifically interested in B2B and B2C marketplaces, e-commerce brands, web-enabled services, and tech platforms. 

What are the best women’s small business grants in 2019?

We’ve listed a few above, including the Cartier Women’s Initiative and Girlboss grants. Each has unique application requirements, including location, size, and whether your business is non-profit. You can also see what grants the government offers small business owners at the Grants.gov website. 

Do women’s small business government loans exist? 

While most loans are open to all qualified business, not just women entrepreneurs, it might pay to become a certified women-owned business. With this certification, you can not only apply for the same financing everyone else can, but you can also be considered for government projects. When you bid on government projects, the government considered certified businesses over others in certain instances. There’s definitely an advantage. Don’t discount business centers and training programs that some of these loan programs provide, as well. There’s more to business growth than financing.

Should I consider peer to peer lending for women?

Peer to peer lending (also known as P2P) is a good funding option for many businesses, even those with new or lower credit scores who may not be interested in higher-cost term loans. However, because lenders can select the type of projects they align with, they might be attractive to the idea of helping a woman-owned business and even offer more generous repayment terms for short-term loans. This same strategy can work for other business types, too. Someone seeking loans for minority-owned businesses, for example, could see interest through a P2P platform for someone hoping to fund diverse business ideas, including women entrepreneurs. 

Nav connects you to business financing offers that you are more likely to qualify for based on your business needs and credit — all without a hard credit pull. See my top options now.

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2 responses to “The Best Business Loans for Women Entrepreneurs

  1. I am a business owner and have struggled for years to keep and maintain a good credit score. For this reason, I have had no success obtaining a loan. Do you have any advice for me?

    1. Sure Lorrie – start with a free Nav account. We offer a variety of educational tools that you are likely to find useful. In addition there are some types of loans that don’t require good credit– but you’ll need sufficient business revenue to qualify.