How to Get Business Loans for Women
Women often find it more difficult to gain access to business loans, although they start businesses at a faster rate than men. In order for a woman to access capital they may have to look around for loan programs that provide more flexible terms.
Be aware that it is also a good idea for women to participate in mentoring programs. Dedication and hard work is also required to be successful. The Small Business Administration (SBA) is considered a primary lending source through its 7(a) Loan Guaranty Program. The SBA does not provide money for grants. The 7(a) Loan Guaranty Program is available through banks that provide loans that are guaranteed by the SBA.
- Apply for a SBA Express loan if you are interested in a small business loan less than $350,000. An express loan is generally approved within three days of the request. These loans carry a SBA guarantee of fifty percent.
- Understand that the qualifications for a SBA-backed loan are more flexible, but may require more specific information. You may be required to include a business profile that gives a description of annual sales and of collateral that you have available to secure the loan.
- Attend training and counseling sessions through the Women’s Business Centers in your area. The centers are designed to help women start a business regardless of any financial disadvantages or experience.
- Research information about SCORE, which is a nonprofit organization that offers free advice. Online help for SCORE includes assistance with writing a business plan for a loan. SCORE also recommends that you contact your local authorities to check for funding in certain business areas. Smaller community banks often cater more towards helping small businesses.