In today’s evolving economy, women entrepreneurs are driving innovation, creating jobs, and building powerful ventures across every industry. Yet, despite their growing influence, access to capital remains one of the biggest hurdles they face. Fortunately, a variety of business loans tailored specifically for women entrepreneurs are available to help bridge that gap, empowering women to fund startups, expand operations, and invest in long-term success.
This comprehensive guide explores the best business loan options for women, how to qualify, where to apply, and strategies to secure the funding needed to thrive.
Why Women Entrepreneurs Need Tailored Loan Solutions
While women own over 40% of all businesses in the United States, they still receive less than 5% of conventional business loan funding. This discrepancy stems from multiple factors, including limited collateral, lower credit profiles, and gender-based lending biases.
Offering targeted financial products and support services helps to:
- Close the gender funding gap
- Boost financial inclusion
- Promote women-led innovation
- Strengthen the broader economy through diverse entrepreneurship
Top Business Loan Options for Women Entrepreneurs
1. SBA Loans (U.S. Small Business Administration)
The SBA doesn’t directly lend money but guarantees loans made by partner banks and lenders, reducing risk and improving terms for borrowers.
SBA 7(a) Loan Program
- Loan Amount: Up to $5 million
- Ideal For: Working capital, equipment, expansion
- Benefits: Competitive rates, long repayment terms, lower down payments
SBA Microloan Program
- Loan Amount: Up to $50,000
- Best For: Startups, home-based businesses
- Perks: Easier approval for those with limited credit history
Many SBA-approved microlenders, such as the Grameen America and LiftFund, focus specifically on supporting women entrepreneurs.
2. Women-Specific Loan Programs
1. Amber Grant for Women
- While technically a grant, this non-repayable fund provides $10,000 monthly to a woman-owned business, with a year-end $25,000 bonus grant.
2. Tory Burch Foundation Capital Program
- In partnership with Bank of America, it connects women with affordable loans of $500 to $50,000 through local CDFIs (Community Development Financial Institutions).
3. Women’s Economic Ventures (WEV)
- Offers loans up to $50,000, mentorship, and entrepreneurial training specifically for women-owned businesses in California.
3. Online Lenders Supporting Women-Owned Businesses
If traditional banks feel too rigid, online lenders provide flexible, fast options. Some standout platforms include:
Kiva
- Loan Amount: Up to $15,000
- Terms: 0% interest microloans
- Best For: Early-stage women-owned businesses
Fundbox
- Offers short-term working capital lines of credit with fast approval times and minimal paperwork.
OnDeck
- Provides both term loans and lines of credit, great for women entrepreneurs with at least one year in business and $100,000+ in annual revenue.
4. Bank and Credit Union Loans
Many local credit unions and regional banks are increasingly offering small business loan programs with diversity-focused incentives. These institutions often provide:
- Lower interest rates
- Longer repayment terms
- Personalized customer service
- Strong community ties
Pro tip: Ask if your local bank participates in SBA lending or has a Women in Business initiative.
How Women Entrepreneurs Can Qualify for Business Loans
1. Create a Solid Business Plan
A detailed business plan demonstrates that you understand your market, product, and financial projections. Include:
- Executive summary
- Competitive analysis
- Financial forecasts
- Funding purpose
- Marketing strategy
2. Build or Improve Your Credit Score
Most lenders review both personal and business credit. Aim for:
- Personal Credit Score: 650+
- Business Credit Score: 75+ (Dun & Bradstreet PAYDEX scale)
Maintain low credit utilization and pay bills on time to improve your score.
3. Gather Required Documentation
Be ready to present:
- Personal & business tax returns
- Profit and loss statements
- Business licenses and permits
- Bank statements
- Ownership and incorporation documents
4. Show Traction and Revenue (If Applicable)
Even a small track record of revenue or customer growth can greatly boost your loan application’s credibility.
Tips to Secure Business Loans for Women Entrepreneurs
1. Start with Women-Focused Organizations
Leverage groups like:
- National Association of Women Business Owners (NAWBO)
- SCORE (Service Corps of Retired Executives)
- Women’s Business Centers (WBCs)
These resources can help with free mentorship, loan application assistance, and networking with potential funders.
2. Consider a Co-Signer or Collateral
If your credit profile is thin, a trusted co-signer or offering collateral like equipment, inventory, or receivables may improve approval odds.
3. Don’t Overlook Grants and Crowdfunding
Grants do not require repayment and can supplement or replace loans. Similarly, platforms like iFundWomen, Kickstarter, and Indiegogo allow women to raise funds from supportive communities.
Success Stories of Women Entrepreneurs Who Secured Loans
- Melissa Butler – Founder of The Lip Bar, secured funding after being rejected by traditional banks and used it to scale her business into national retail.
- Kim Kaupe – Co-founder of ZinePak, started with SBA microloans and grew her business into partnerships with Walmart and Universal Music Group.
- Tina Sharkey – Used venture debt alongside loans to launch Brandless, demonstrating how multiple funding sources can work together.
Empowering Women Through Financial Access
Breaking down barriers to capital isn’t just about fairness—it’s about fueling economic growth. When women entrepreneurs have access to loans, they reinvest in their families, communities, and industries.
With the right mix of resources, preparation, and strategic lenders, securing a business loan as a woman entrepreneur is not only possible but achievable. Whether you’re starting a bakery, a SaaS company, or a fashion line, capital is within reach—and it begins with taking the first step.