Top Small Business Loans for Women in 2024

Business Loans for Women

Women now own over 11.3 million businesses in the U.S., generating $1.6 trillion in revenue. Despite this significant contribution, securing a small Business Loans for Women remains more challenging compared to men, as reported by the U.S. Senate. Experian highlights that women are often viewed as less credible, with even female lenders showing a preference for men.

Navigating the Loan Landscape

If you’re a female entrepreneur, it’s crucial to understand the financing options available and their impact on your business. Traditional banks and lenders demand extensive documentation and excellent credit, making them the toughest to navigate. Alternative lending, however, offers quicker applications and more flexible terms, potentially aligning better with your business needs.

Finding Support Before Applying

Seek Business Counseling

Before applying for business loans for women, consider business counseling. Numerous free resources are available through government and non-profit organizations to assist female entrepreneurs.

1. Small Business Administration (SBA): Offers resources through its website and local Women’s Business Centers to refine business plans.
2. Ladies Who Launch: Provides online business tips, resources, and networking opportunities.
3. V-Wise: Offers comprehensive support for female veterans, including training and access to capital.
4. SCORE: A non-profit providing free mentoring and assistance with funding options.
5. Women Owned: An online community offering resources on small business loans and grants for women.
6. Women Accessing Capital: Provides webinars, podcasts, and training sessions to help with capital access.

Prepare Your Business

Ensure your business is operational before applying for business loans for women. Most funding opportunities are reserved for existing businesses. Start working, earn some revenue, and build a customer base to enhance your chances of receiving funding. Note that multi-level marketing (MLM) companies generally do not qualify for traditional business loans for women.

Gather Documentation

Prepare all necessary documentation for your loan application, including financial statements, tax returns, and business plans. Missing documents can delay the approval process. Alternative lenders often have fewer requirements and can be a faster option compared to traditional banks.

Exploring Lending Options

Alternative Lending

Alternative lending has grown significantly, providing flexible and quick funding options, especially for those with bad credit. Unlike traditional banks, alternative lenders may offer up to $1,000,000 without collateral, with application processes sometimes completed in 24 hours.

State Loan Programs

State-specific loan programs provide various support options Business Loans for Women. By entering your zip code on relevant websites, you can find local resources tailored to your needs. The SBA also offers regional support through various programs.

Government Grants

Government grants are available for specific industries or organizations and often have stringent requirements. They are generally not for starting or expanding businesses but can be valuable for certain projects. Resources for finding government grants include:

• Grants.gov
• Small Business Innovation and Research Program
• Grants for Women Directory
• Grant Watch

Private Grants

Private organizations offer smaller grants for business loans for women, often without disqualifying those with bad credit. Notable options include:

• Smart Women Grants: $3,000 grants for various business types.
• Amber Grant: Offers $500 or $1000 grants for women entrepreneurs.
• Eileen Fisher Grant: $10,000 grants for women-owned businesses with social or environmental impact.
• FedEx Grants: Up to $25,000 for small businesses.
• Walmart Global Women’s Economic Empowerment Initiative: Offers financial grants and support.
• The American Association of University Women: Provides career development grants.
• The Open Meadows Foundation: $2,000 grants focused on political change and community empowerment.
• Halstead Grant: Up to $7,500 for jewelry designers or artists.
• Google Ad Grants: Up to $10,000 per month in free advertising.

Small Business Loans from Private Organizations

Certain organizations and banks offer loans specifically for business loans for women. These programs vary by region and often include additional resources. Examples include:

• Tory Burch Foundation: Loans for established women-owned businesses.
• Women’s Venture Fund: Provides funding and business resources.
• Women’s Economic Ventures: Loans up to $50,000 for startups and expanding businesses.

Geographically-Based Loans

Regional programs often target economically-depressed areas and offer loans with favorable terms. Examples include:

• Wisconsin Women’s Business Initiative: Up to $250,000 for businesses in Wisconsin.
• Economic Development Corporation of Eerie NY: Loans from $25,000 to $500,000.
• Northeastern University Business Loans: For businesses in Boston.
• Business Outreach Center Network: Small business loans up to $50,000 in NY.
• Women’s Opportunity Resource Center: Loans from $500 to $35,000 in Philadelphia.
• Maryland Capital Enterprises Inc: Loans up to $250,000 in Maryland.

Business Loans for Women From  Local Bank

Local and national banks also offer tailored programs for business loans for women:

• Key Bank: Provides loans and financial solutions in 14 states.
• PNC: Offers products and services specifically for women.
• Union Bank: Assists women-owned companies on the West Coast.
• Goldman Sachs’ “10,000 Women”: Provides business management resources and capital.
• Local First Bank: Offers various loan options in North Carolina.
• Live Oak Bank: Provides loans for businesses with federal contracts.
• American National Bank: Offers multi-million dollar loans in Wisconsin.
• Lift Fund: Small business loans from $500 to $1,000,000 in the Southern U.S.
• Community Advantage Loans: SBA pilot program providing credit and assistance in underserved communities.

Economic Development Agencies

Each state and many local governments have agencies dedicated to business growth. The SBA’s platform helps locate resources by state.

Community Development Financial Institutions (CDFIs)

CDFIs provide affordable loans to disadvantaged communities. Key CDFIs include:

• CDFI Website: Central resource for local CDFIs.
• Craft3: Offers loans from $25,000 to $5,000,000 in the Pacific Northwest.
• ACE Women’s Business Center: Provides loans up to $50,000 with advisory services.
• AEO Works: Network of community lenders for underserved entrepreneurs.

Venture Capital

Angel investors and venture capitalists can provide significant funding but are highly selective. Notable funds include:

• Astia: Offers capital, networking, and guidance to female entrepreneurs.
• Golden Seeds: Funds women-led companies with specific requirements.
• 37 Angels: Provides up to $150,000 to women-led businesses.
• Plum Alley: Connects investors with women-owned companies.
• Women’s Capital Connection: Network of women investors focusing on startups.
• Topstone Angels: Invests in women startups across multiple industries.
• BBG Ventures: Focuses on mobile and internet startups with female founders.
• Belle Capital: Invests in technology sector companies led by women.
• Springboard: Accelerates access to growth capital for women entrepreneurs.
• Phenomenelle Angels Fund: Provides early-stage investment in the Midwest.
• The Harriet Fund: Offers capital and mentoring to early-stage women-owned companies.
• Female Founders Fund: Supports early-stage tech companies led by women.
• SheEO World: Offers low-interest loans funded by women.

Crowdfunding

Crowdfunding allows raising small amounts from a large number of people. Some platforms include:

• Patreon: Supports content creators through fan contributions.
• IFundWomen: Crowdfunding site for women entrepreneurs.
• Kiva: Provides small business loans to women-owned ventures.

Microloans

Microloans offer small amounts of funding, typically up to $35,000. Notable providers include:

• Grameen America: Offers microfinancing to women entrepreneurs.
• Accion: Provides loans up to $50,000 with additional business resources.
• SBA Microloan Program: Loans up to $50,000 for startups and expansions.
• NY Minority and Women Revolving Loan Trust Fund: Loans up to $50,000 with business support.
• Michigan Women’s MicroLoan Fund: Provides up to $50,000 for women-owned businesses in Michigan.

Conclusion

At Global Pacific Advisors, we are dedicated to supporting women in business. An educated borrower is an empowered borrower. Understanding your options and rights is crucial. If you have questions or need guidance, feel free to contact us for assistance in finding the right funding solution for your business.