How to Get a Small Business Loan for Your Woman-Owned Business

As a woman who owns a small business, you know how much work it takes to make it. Women in business are continuing to make strides in the world of entrepreneurship, with the United States Census Bureau citing continuous growth; however, many women still face barriers, including limited access to funding for their businesses. The good news is government agencies, financial institutions and independent organizations are working to help. Through specialized programs, these groups offer loans and grants specifically for women-owned businesses like yours.

Let’s talk about opportunities you can capitalize on to help your small business thrive. 

Government programs like the U.S. Small Business Administration (SBA) have taken the lead in supporting women-owned businesses. By offering an array of support options including loans, grants, and educational opportunities, these agencies are working to give women the resources they need. They offer valuable resources that provide detailed information about different loan programs, eligibility requirements, application procedures, and practical tips to navigate the complex landscape of funding opportunities.

Visit SBA’s Lender Match program to find the right loan for your business. Below are some of SBA’s most popular loans for female-owned small businesses. Each has its own unique set of qualifications and advantages.

7(a) Loan

This versatile program addresses a wide range of business requirements, from bolstering working capital to acquiring essential equipment. Women entrepreneurs can benefit from favorable terms, including lower down payment requirements. These loans guarantee portions of the total amount, cap interest rates, and limit fees.

Microloans

Tailored to cater to startups and small businesses, microloans offer smaller capital injections that are often more suitable for women-owned enterprises. These loans are typically facilitated through intermediary lenders who understand the unique challenges faced by such businesses.

504 Loans

Designed with the intention of supporting businesses in acquiring real estate or significant assets, this program facilitates fixed-rate financing for assets and contributes to local economic development.

United Bank is not endorsed by, sponsored by, or affiliated with any government agency or program.

Many corporations and charities offer specialized grants for small businesses. These can include specific grants for minority women, women in specific industries, and regional awards. Grants are a great option if you are having difficulty qualifying for a loan. While the competition for grants is stiff, once you secure a grant, your business gets injected with cash that you will never have to repay.

While bank loans usually come with the lowest cost, they can also be some of the toughest to qualify for. That’s why our team of Business Bankers works closely with you to deliver the resources and support your business needs to thrive.

For those combating a lower credit score, online lenders could be a sound option. With more relaxed qualification requirements and faster funding, they are a great flexible choice. However, the borrowing costs are typically higher. 

Access to capital remains a cornerstone of success for female entrepreneurs. By capitalizing on the resources offered by government and private funding, women can navigate the intricacies of the financing landscape with confidence. These organizations provide comprehensive insights into various loan and grant options, detailed application processes, and expert advice for securing financial support. As the business landscape continues to evolve, the ongoing rise of women entrepreneurs is shaping a more diverse and inclusive economic environment.

Women entrepreneurs are powerful drivers of innovation and growth across diverse industries. By leveraging financial support, they can unlock their full potential, contributing to economic expansion and empowerment on a global scale. Funding is critical for making your business goals a reality.

Interested in learning more about how you can secure funding for your small business? The experts at United Bank can help. Visit your local branch to learn more. 

Sources:

https://www.nerdwallet.com/best/small-business/small-business-loans-for-women

https://www.sba.gov/funding-programs/loans

https://www.forbes.com/advisor/business-loans/business-grants-for-women/

Women Business Ownership in America On the Rise (census.gov)