SBA Loans for Women

Best SBA Loans For Women

Women who own their own businesses are often faced with less opportunity than their male counterparts, mainly financial opportunity. According to a study done in 2014 by the National Women’s Business Council, women start firms with, on average half of the capital men do. Over the last several years, women have come to play an increasingly prominent role in the business world by starting new businesses with less capital and demonstrating impressive entrepreneurial skills. Owning a business means contributing to a budget other than your own personal needs, a budget that is often more costly and demanding than your own. Most new businesses must rely on outside financing to become successful, loans from the Small Business Administration are often a great resource for new businesses to find that next level of financing.

The Small Business Administration has designated several specific loans to benefit the needs of new businesses owned by women. The loan programs available to women business owners are outlined by the Office of Women’s Business Owners (OWBO), specifying some baseline regulations for businesses to abide by in order to be eligible for their designated SBA loans. Commonly, SBA loans will require a business to have a good business credit report and a solid business plan to vouch for their business and reassure the lenders. While it is more difficult to be accepted for an SBA loan program, it is the best loan option with the often low interest rates of 4% to 9% and long-term financing of seven years or longer. It is important that women-owned businesses are applying and utilizing the SBA loan programs, as in the past it has been recorded that only about 30% of female-owned businesses are approved for such loans, as opposed to the 50% of overall businesses that are approved for SBA loans. The Small Business Administration is gradually making it possible for businesses owned by women to operate on a more level playing field than in previous years.

While SBA loans are a primary choice due to the security of a guarantee from the government, low interest rates, and long-term financing; women looking to finance their businesses can find options through online loans, federal and state-level grants, specialized angel investors, and various microloans. There are many options for women to consider when searching for the most efficient method of funding their projects and jumpstarting their business ventures. When reviewing some of the aforementioned financing options, many female business owners find it helpful to look towards associations like the National Women’s Business Council, or the Office of Women’s Business Owners to network and communicate advice in reference to the best financing options available. In any case, whether you make the decision to apply for an SBA loan, or need assistance reviewing alternative loan programs, please feel free to reach out to one of our specialized financial advisors.