Women Entrepreneurs
Women Entrepreneurs

Business Loans for Women Entrepreneurs

The emergence of women entrepreneurs has broadened the horizons of loan providers. The impact of women in the corporate is escalating every year where more than 35% of private organizations are run by women. This is also making it easier for them to get the business loans for start-ups and already established ventures across several institutions.

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Business Loans for Women Entrepreneurs
Business Loans for Women Entrepreneurs

Many loan programs have been made to let females apply and set aside funds for them, minorities as well as for under-represented sections. These funds might take a month for approval so it is advised to give a thorough research long before applying for loan. There are not ‘women loans’ and there is no Government provision for funding only for women. There are several questions on application which asks about personal information which is utilized for approving the funds which is set aside for disadvantaged group such as women. The loan name, process and application is similar for a woman than any other applicant.

Below is a list of loans which are feasible once you are ready to fund your next stage of business growth :

1. Rural Business and Industrial Loans

The purpose of Rural Business & Industrial (B&I) Guaranteed Loan is to enhance, develop, or finance the businesses, industry, and employment. This will overall work towards the improvement of the economic and environmental climate in rural sections This type of loan is technically for an individual, cooperative agencies i.e. profit or non-profit, a tribe, or a public body. The organization must serve a rural area is a requirement for qualifying for this loan.

Criteria include :

  • Hiring of workers
  • Improvement of economic or environmental climate around you
  • Promoting clean water for aquaculture, or
  • Promoting renewable energy solutions

2. P2P Loans

The other option is to borrow money from eager investors. Peer-to-peer funding has been in the radar almost a decade ago. Borrowing funds directly from individual lenders is easier irrespective of the fact whether you borrow loan through a more service-minded platform or choose one that’s aimed to serve a larger business landscape.

3. Private Small Business Loans

The world of private small ventures funds for-profit businesses offers loan to women. Similar to many loans, they excellent credit score, a reliable history along with a plan dictating how you will utilize the funds and at last the projection of profits to let them know you can pay the money back.

4. Small Business Administration Lender Match- Small Business Loan

Specifically designed for all small businesses which are able to meet certain guidelines, SBA loans are offered through a program ‘Lender Match‘. You need to provide your details and willing bank or lender will contact you according to the needs and types of financing you are looking for. You will understand whether you have qualified and can continue with the process. A meeting is arranged in next two days.

The first criteria to be eligible for SBA loans, you should be a U.S. based and has profit business. These funds require the ventures to have utilized all the other methods of funding first which includes personal assets and traditional bank loans.

5. SBA 8(a) Business Development Program

Not specifically for women entrepreneurs but the program provides guidance for all the small businesses which are owned by socially and economically disadvantaged people or entities. It also includes women as well as minorities. In order to apply for an 8(a) status, the borrower has to go through the certification site.

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

The FSA has shifted their focus on lending funds to underserved farmers and ranchers via several schemes. These loans are available for almost all small farmers with a focus on providing funds to the underserved along with women.

Bottom Line:

How to find these loans? You must be prioritizing the banks with whom you are currently associated including mortgage holder or auto lender as they have all your information in file and have an understanding of your business health. But the portion of interest rate charged by them may want you to think twice about the loan. Research online and pick the best loan option according to your venture’s size. 

Priyanka Dwivedi is Editor-in-Chief at Fundlime. Specializing in financial advice for small business owners. Beyond her deep knowledge of small business loan and tips, she would love to help match your business with the best loan option that benefits you most!

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