While women are the largest group of small business owners in the US, they struggle to access funding. According to a LendingTree study, female-owned businesses receive just 4% of conventional small business loan dollars and less than 2% of venture capital money. But there are loans and development programs designed specifically to give female minority entrepreneurs greater access to business funds.
Small business loans for women provide cash infusions to help level the economic playing field. Whether they’re used for purchasing new equipment, managing inventory or covering payroll, the right business loan products can empower women-owned small businesses to compete and thrive in their specific industries.
These loan products tend to have more flexible qualification requirements and lower interest rates than traditional bank loans. They’re typically intended to be paid back in a defined period of time, usually a few years or more. They can be secured through a variety of private lenders, including online options.
Many federally backed and private lending institutions offer small business loans for minorities, including the Small Business Administration (SBA), whose funding options are often considered the best on the market. However, qualifying for this type of funding can be competitive.
Nonprofit community financial development institutions (CDFIs) and other development organizations may also offer small business grants for women. These types of funding sources typically don’t require repayment, but they’re not available to every woman-owned business and have a finite amount of money to distribute. loans for women in business