women owned businesses

Attractive Small Business Loans for Women in August 2022


The impact that women have on the U.S. economy is growing every year. Women-owned businesses are one of the fastest-growing segments of small businesses in the country. And that progress would not have been possible without financial support given to women-owned businesses when it was needed most.

Getting a small business loan can be challenging and women business owners may find it even more difficult. This article provides some guidance to help women business owners get the best small business loans for women and grants.

Business Loans For Women

There are several business loans for women entrepreneurs in the United States. The following are some of the most accessible options.

Banks and Credit Union Loans

Traditional lenders providers like banks and credit unions offer business loans for women. The advantage to applying for a women’s business loan through your bank is that banks sometimes offer lower interest rates.

Also paying off a loan from a bank or credit union can help build your business credit rating. However to get approved for a loan by a bank you will need to have excellent credit and established business history. Banks usually require a lot of paperwork and the process can take several months for approval and money dispersal.


This type of small business loan is a great option for business loans for women, especially new businesses. The loan amounts usually range from a maximum payout of $50,000 and can be obtained within 5 days. This loan is beneficial for smaller businesses that don’t have large capital needs or companies that don’t have a lot of employees.

Newly established companies that don’t have a long business history are more likely to get approved for microloans. Startup companies can use the funds towards getting their new business settled. The Accion Opportunity Fund offers microloans from $5,000 up to $100,000. The repayment period ranges from 12 to 60 months.

female business owners

The Small Business Administration (SBA) Loans

Small Business Administration (SBA) loans are a popular method of getting business loans for women. SBA loans allow you to borrow up to 5 million dollars and the terms are usually good for 5 to 10 years. To be considered for SBA loan programs your business must be a credible small business. your business must have less than 7.5 million in annual revenue and must have less than 500 employees.

You will need a credit score of at least 620. Your business should be in operation for a minimum of two years and have no bankruptcies, foreclosures, or outstanding tax liens.

Women owned small businesses existing in underserved markets stand a huge advantage of closing this type of SBA pilot loan program. This type of loan offers less than $250,000 in funding as well as other resources for managerial and technical assistance.

Online Loans

Small business loans are easier to get compared to traditional business loans. Even with a low or bad credit score between 300 and 689 or business age less than two years, you could easily access online business loans. Online lenders offer multiple products for small business financing. Loan approval from an online lender is quite fast but they tend to charge higher borrowing costs than traditional lenders.

Other Resources For Female Entrepreneurs

The Office of Women’s Business Ownership (OWBO) works with the Small Business Administration to help women entrepreneurs. They organize business training and counseling to help disadvantaged businesses compete favorably in the market. They also assist women entrepreneurs to get government contracts and access to credit and capital.

Another resource for women-owned businesses is the National Women’s Business Council. The Council is the US government’s only non-partisan voice for women entrepreneurs.

women entrepreneurs

Small Business Grants For Women

Grants typically don’t have to be paid back and some grants are integrated with business training. There is a myriad of small business grants for women that women-owned businesses can apply for.

You will want to look for small business grants at both federal and local levels. You should also look within women’s community groups like the National Association of Women Business Owners and The Office of Women’s Business Ownership.

How Are Grants For Women-owned Businesses Different From Loans?

Women-owned businesses do not have to pay back grants, unlike business loans. Grants are highly competitive and the application and funding process can take months. Grants typically provide fewer funds than small business lending.

Below are some women small business grants female entrepreneurs can apply for.

Women of Color Grant Program:

This opportunity was created by The Cru, Fearless Fund, and The Tory Burch Foundation. The program offers 150 small businesses grants ranging from $10K to $20K. Women of color who have established businesses aged one to five years with at least $100,000 annual revenue can apply.

NASE Growth Grant:

Offered by the National Association of the Self-Employed, this grant provides up to $4,000 in scholarships every month to minority women owning small businesses. The purpose of the grant is to facilitate growth in various areas of the business, especially in its early stages.

Amber Grant:

This grant is for female business owners in remembrance of Amber Wigdahl. The grant program gives one female business owner a $10,000 grant every month. At the end of the year, one of the 12 women entrepreneurs is awarded an extra grant of $25,000.

Tory Burch Fellows Program:

This program offers a $5,000 grant for female entrepreneurs with startups. About 50 winners emerge each year. In addition to funding, the winning female entrepreneurs get access to workshops and business guidance.

Small Business Innovation Research Program

The SBIR is powered by the SBA to fund small businesses in the areas of research and development. They are particularly supportive of scientific and technological innovations. They do so by channeling federal government funding into small businesses with lower than 500 employees and a majority share owned by a U.S. citizen. A woman owned business could receive from $150,000 in grants to over $1 million to fund its innovation.

For women owned small businesses in the Fintech space, this grant is an excellent option to consider. Even though this initiative is gender-inclusive and available to male business owners as well, there is a special Women’s Global Edition offered by Visa. This increases the opportunities for women owned small businesses in securing working capital regardless of their credit score.

The initiative offers as much as $50,000 to the winners of Fintech and social impact challenges.

Applications are open on Visa’s official website.

Other resources: GrantsForWomen.org

There is an extensive directory of available grants for women in the United States. With GrantforWomen.org, women entrepreneurs can search for funding opportunities on the database at no cost. The value of the grants varies but they are intended to help you grow your small business.

How Can I Get A Small Business Loan For Women?

loans for women

There are plenty of obtainable business loans for women. With the proper research and knowledge of your options, you’re likely to be approved. Here’s how to get small business loans for women.

  1. Meet the SBA standards for the size of a small.

  2. The business owner should be a woman or at least 51% of the business owned and controlled by women.

  3. Women must hold senior leadership roles, manage the day-to-day operations, and be involved in long-term business planning.

  4. Have updated tax and financial records. You need to have tax returns, a business plan, business bank statements, and any other financial and legal information about your business.

Benefits Of Business Loans For Women

A lack of access to business financing has been observed to be a major barrier to the success of women-owned businesses. Women earn only 50-75% of men’s earnings and so may not have personal assets that can stand as collateral to secure a small business loan.

Women hold more credit cards than men and carry roughly 66% of student loan debt. Such credit history further lowers their chances of getting a traditional loan.

Women-owned business loans help to promote women’s economic empowerment. with the support of a financial institution, women-owned businesses will create more jobs, give women greater control of monetary assets and bridge the income gap.

Empowering a woman-owned business doesn’t benefit only the business owner, the International Labour Office Geneva says that money earned by women is often re-invested into children’s education.

FAQ: Small Business Loans For Women

What types of small business loans for women are there?

Small business loans for women business owners include long-term loans, business lines of credit, invoice factoring, equipment financing, and business credit cards. Women can apply for any small business loan as long they can meet the lender’s eligibility requirements.

How Do I Find a Good Lender?

A little bit of diligent research can go a long way but make sure the lender you choose is clear about its terms and fees. the loan options they offer must match your needs and your ability to pay back. Compare a lot of lenders to find low-cost business loans for women-owned small businesses.

Best Small Business Loans For Women

The Different Types of Financing

Term Loans

A term loan is a loan that is paid off over a pre-agreed upon period. Depending on the terms you can have anywhere from a few months to a few years to pay back the loan. Interest rates of a term loan are also pre-determined.

Equipment Loans

There are business loans specifically for purchasing business equipment. Women-owned small businesses can use this loan to get the necessary equipment needed for business. This could be office supplies, computers, appliances, etc. Typically the equipment will be collateral until the loan is paid off.

Working Capital Loans

These small business loans can be used by small business owners for short-term expenses such as payroll. It serves leasing expenses or daily business-related expenses.

Merchant Cash Advances

A merchant cash advance (MCA) is a type of business loan that allows business owners to get a lump sum in exchange for future revenue through card transactions. MCAs don’t operate on monthly payments but through individual or daily sales. MCAs are some of the more expensive business loan options.

Invoice Financing

Invoice financing is borrowing against your outstanding invoices. It works just like an MCA but the lender cashes a percentage of your invoices instead of daily sales.

Business Line Of Credit

A business line of credit is an arrangement that will allow women-owned businesses to the borrowing limits set by the lender. This loan works such that every payment towards the credit line, excluding fees and interest, raises the credit back up. Then you can draw funds again and again as long as you keep paying them back.

Business Credit Card

This works just like a personal credit card and newly established businesses can get one. Small business owners can use a business credit card for everyday purchases and earn cash back bonuses whilst building a credit history.

Small Business Women

What Are My Options For Small Business Loans For Women?

The most attractive business loans for women loan options are traditional lenders but women entrepreneurs should be open to pursuing small business loans from online lenders too.

Online lenders disburse loans fast, usually within a day or two. Traditional term loans take longer but the interest rates are much cheaper than online lenders. For online lenders, the credit score does not matter much but the bank would take a credit score very seriously.

Women entrepreneurs should be aware that alternative lenders tend to have higher interest rates and shorter terms compared to other financial institutions.

Small Business Loans for Female Minorities

Being a woman entrepreneur is interesting. However, the challenges are twofold when you are both a minority and a woman.  Here are a couple of small business loans for minority women or disadvantaged women.

Grameen America

This organization provides microloans starting at $2,000 along with financial training, and support to members. Their target audience is women who live below the federal poverty line, and who lack bank accounts and credit scores.

Minority Business Development Agency

This agency helps small businesses owned by minority women to drive growth through federal funds of various values readily available on their website.


Minority and women owned businesses have taken a prominent position in the country’s funding programs. Now, women entrepreneurs can access the working capital that they need to start and grow their businesses.

You can particularly take advantage of Upwise Capital’s easily accessible small business program or any other loan products and lines of credit right now. Our team of funding experts will put together a list of products and lending solutions specifically designed for women business owners.

Help is just a few clicks away. Simply fill out our Funding Application Form right now or call us on the phone at 775-5-UPWISE (879473) to get access to fast loans within 24 hours.


Get Started today, Applying won't impact your credit score

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