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Here are 8 small-business loans for women
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA loans for women-owned businesses | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA Express loan with Fundera by NerdWallet | Best for Low-interest business loans for women | $500,000 | 650 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Small-business loans for women with bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Startup business loans for women | $150,000 | 600 | Read Review |
Accion - Business Loans | 4.0/5 Best for Business loans for minority women | $250,000 | 570 | Read Review |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast business loans for women | $250,000 | 625 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Easy business loans for women | $250,000 | 625 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for Microloans for women | $50,000 | 620 | with Fundera by NerdWallet |
Here are 8 small-business loans for women
Best for SBA loans for women-owned businesses
Best for Low-interest business loans for women
Best for Small-business loans for women with bad credit
Best for Startup business loans for women
Best for Business loans for minority women
Best for Fast business loans for women
Best for Easy business loans for women
Best for Microloans for women
Our pick for
SBA loans for women-owned businesses
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
11.50-15.00%
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Low-interest business loans for women
SBA Express loan
Max Loan Amount
$500,000
Min. credit score
650
Est. APR
11.50-15.00%
SBA Express loans are available up to $500,000 as either a term loan or line of credit.
Max loan
$500,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Small-business loans for women with bad credit
Fora Financial - Online term loan
Max Loan Amount
$1,500,000
Min. credit score
500
Fora Financial can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
Max loan
$1,500,000
Min. Credit score
500
Our pick for
Startup business loans for women
Fundbox - Line of credit
Max Loan Amount
$150,000
Min. credit score
600
Est. APR
10.10-79.80%
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
May fund quickly
Max loan
$150,000
Min. Credit score
600
Apr range
10.10-79.80%
Our pick for
Business loans for minority women
Accion - Business Loans
Max Loan Amount
$250,000
Min. credit score
570
Est. APR
5.99-18.99%
Accion Opportunity Fund loans are an option for established businesses that haven’t been able to secure traditional financing due to poor credit, no credit history or a small loan amount.
Max loan
$250,000
Min. Credit score
570
Apr range
5.99-18.99%
Our pick for
Fast business loans for women
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
Our pick for
Easy business loans for women
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
35.40-99.90%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
Our pick for
Microloans for women
SBA Microloan
Max Loan Amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
The average microloan is roughly $13,000, according to the Small Business Administration.
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Types of small-business loans for women
The right loan for your business is typically the one that costs you the least while fitting your funding needs. Women-owned companies may be able to tap into multiple types of business loans, including:
SBA loans
There are several SBA loans that female entrepreneurs can tap for financing, including the flagship SBA 7(a) loan program. Banks, online lenders and other financial institutions offer these loans, which are backed by the U.S. Small Business Administration.
The SBA 7(a) loan program offers low interest rates and long repayment terms — making it a good option for a variety of use cases. Small businesses that are more than 50% female-owned received nearly $7.3 billion in SBA 7(a) funding in fiscal year 2022, according to the SBA.
To qualify, however, you’ll need an established business, good credit and solid finances.
SBA 7(a) loans are traditionally slow to fund, but if you need access to capital more quickly, the SBA Express loan provides a faster timeline. The SBA strives to return decisions on Express loans within 36 hours.
These SBA loans have smaller maximum funding amounts, but still offer competitive interest rates and repayment terms for those who qualify.
Bank business loans
Small-business loans from banks typically come with the lowest costs but toughest eligibility qualifications.
In 2016, large banks approved 50% of women-owned business applications and small banks approved 67% — the highest among all funding sources — according to the most recent data from the Federal Reserve.
However, overall bank approvals have shrunk greatly since then, with Biz2Credit’s August 2023 data finding 13.2% and 19.1% approval rates at large and small banks, respectively.
Online loans
If you have a lower credit score (a score between 300 and 689) or have been in business for less than two years, an alternative online lender could be a good choice.
These lenders offer multiple products (including term loans, lines of credit, equipment financing and invoice factoring), specialize in speedy funding and have looser qualification requirements than banks. The trade-off for those conveniences, however, is borrowing costs may be higher than other options.
Microloans
Many mission-based nonprofit organizations offer microloans to local businesses, often focusing on businesses owned by women, people of color and veterans.
For example, Grameen America provides loans ranging from $500 to $2,000 to entrepreneurial women who live in poverty. Microloans can be a good option if you can’t qualify with a bank or online lender or have a small financing gap.
Small-business loans for minority women
Female business owners in historically underserved communities can access funding from SBA lenders, nonprofit organizations and specialty programs — and may have more success with these options than applying for traditional business loans.
Nonprofit lenders and community development companies can offer funding to minority- and female-run businesses in low-income and rural communities through the SBA Community Advantage loan program until it expires on Sept. 30, 2023.
Existing Community Advantage lenders can apply to become Community Advantage Small Business Lending Companies (CA SBLCs) and issue regular 7(a) loans under this new license. CA SBLCs will continue to prioritize small-business loans for women and other borrowers in underserved markets.
Many nonprofit lenders also offer microloans and other forms of business financing for women- and minority-owned businesses in their communities outside of the SBA loan program. For example, Accion Opportunity Fund says nearly 90% of its clients are women, people of color or low-to-moderate income borrowers.
Some banks, like U.S. Bank, distribute minority business loans through specialty lending programs. U.S. Bank’s program offers loans and lines of credit to women-, veteran- and minority-owned businesses with more flexible qualifications than its standard business loans.
Small-business loans for women with bad credit
If you’re a female entrepreneur with bad credit, it may be more difficult to get a loan for your business. There are a few options for bad credit business loans, but keep in mind interest rates may be higher than alternatives.
Some online lenders are willing to work with businesses with bad credit, especially if they have strong finances. Fora Financial, for example, only requires a minimum credit score of
500
for its business term loan. Similarly, you may be able to access a business line of credit from Fundbox with a minimum credit score of 600
.Nonprofit lenders and community financial development institutions, or CDFIs, may also offer small-business loans for women with bad credit. These lenders often provide funding to traditionally underserved business owners, which can include those with poor or limited credit.
For instance, TruFund is a CDFI that operates in New York, New Jersey, Alabama, Louisiana, Texas and Georgia. The organization issues a variety of types of business loans, including term loans that only require a minimum credit score of 600 to qualify.
Startup business loans for women
Startup funding is elusive, but targeting the right lenders and programs can improve your chances of securing a startup business loan for your women-owned business.
The SBA microloan program is designed specifically for startups and early-stage businesses (startups received nearly 40% of all SBA microloans in fiscal year 2021). And SBA Community Advantage loans typically go to businesses that have been in operation for fewer than three years.
SBA microloans are issued by nonprofit organizations. Find providers in your area on the SBA website.
Additional startup funding options include small-business grants and crowdfunding. If you have good personal credit, you may qualify for a personal loan for business. Most personal loans are unsecured, and some loan amounts go as high as $100,000.
Business credit cards also offer financing for women-owned small businesses that are starting out or need working capital.
Other resources for female entrepreneurs
Government and nonprofit organizations offer free assistance to women entrepreneurs. These programs may provide women with help completing steps to getting a small-business loan, like writing a business plan, and guidance on topics like starting a business, financial management and marketing.
Grants
Women-owned businesses can get free funding through grants from government agencies and nonprofit organizations. Here are places to look for small-business grants for women.
Women’s Business Centers
The Women’s Business Centers are a network of more than 100 educational centers around the United States that help women start and grow their businesses. These SBA-funded centers typically offer seminars and workshops on a range of topics, including how to start a business and raise capital.
Federal contracting programs
The SBA-run Women-Owned Small Businesses Federal Contracting Program is for women-owned businesses that are interested in government contracts. Women can also apply for a certification from the SBA 8(a) Business Development program, which allows all “socially and economically disadvantaged people or entities” (including women) to compete for set-aside federal contracts.
Ascent online learning platform
Ascent is a free digital tool launched in 2021 as part of a joint initiative between the White House, SBA, the U.S. Department of Labor’s Women’s Bureau and the U.S. Department of the Treasury. This online platform offers tools, quizzes and other learning resources designed to help women entrepreneurs who are looking to grow their businesses.
DreamBuilder
Created by the Freeport-McMoran Foundation, DreamBuilder is an online education program for female business owners. The program offers two course options — one course is designed to help entrepreneurs start their business, while the other focuses on how to finance your operations. It’s free to enroll in the DreamBuilder courses, and they’re available in both English and Spanish.
National Association of Women Business Owners
The National Association of Women Business Owners, based in Washington, D.C., has 5,000 members and nearly 60 chapters across the country. It offers training and information on topics such as access to capital, government contracting and business certification.
National Women’s Business Council
The National Women’s Business Council works with the Office of the President, Congress and the SBA on issues related to women business owners. Resources include help for startups, alternative lender programs, conferences and mentor groups.
How to get certified as a women-owned business
Getting certified as a women-owned business can help your business grow by boosting your reputation and helping you find and be recognized for various programs and lending opportunities. Since there is no universal certification, how you get certified will depend on your type of business and where you are located. Follow these steps to start your certification process.
Make sure you qualify
Even though different agencies might have different qualifications, some common requirements are as follows:
- Your business is at least 51% owned by a woman who is a U.S. citizen.
- Your business meets the SBA’s small business size standards.
- In addition to ownership, your daily business operations are managed by a woman.
- Your business is a for-profit business.
Different agencies may verify this information using different methods, like sworn affidavits or site visits to your business.
Find a certification agency
You can become certified through the federal government or a private agency, depending on your type of business.
Government certification
The SBA certifies women-owned contractors through its Women-Owned Small Business Federal Contract Program (WOSB Program). If you become WOSB certified, you are given special access to federal contracts that are set aside for members of the program. You can apply to become certified through the SBA website.
In addition to the federal government, local business administrations may provide special certifications for their state, and the qualifications may be more lenient than national initiatives. For example, the Texas SBA certifies businesses that are 51% or more women-owned that are registered in the state of Texas. These certifications are open to U.S. citizens as well as those who possess a U.S. Immigration Visa.
Private certification
National organizations like the Women’s Business Enterprise National Council (WBENC) act as networks that utilize local organizations all over the country to help you get certified as a women-owned business. Once you apply, your application is processed and approved by a local partner. With private agencies, however, you may be charged a processing fee that’s either flat or based on your business’s revenue.
Organize your documents
Although it varies, most agencies have similar requirements, so it’s prudent to be organized going into the process. These documents may include:
- Business certification and registration paperwork.
- Proof of good standing with your secretary of state.
- Business licenses.
- Owner resumes.
- Brief history of business.
- Proof of citizenship of owners.
- Business financial documents.
Find the right business loan
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on September 12, 2023
Methodology
NerdWallet reviewed both traditional and online lenders in order to create our list of the best small-business loans for women.
Our list includes a variety of loan options to meet the diverse funding needs of small-business owners, with an emphasis on lenders that offer a streamlined underwriting and approval process.
Each small-business loan option on our list meets the following criteria:
- Maximum loan amount of at least $50,000.
- Transparent rates and repayment terms.
- Funding available within two weeks of applying.
- Personal credit score requirements of 650 or below.
- No more than two years in business required.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
Learn more
Frequently Asked Questions
Women can get small-business loans through nonprofit lenders, online lenders, credit unions and banks. Online lenders offer more speed, convenience and looser qualifications than most credit unions and banks, but may charge higher rates.
According to the Federal Reserve, women-owned businesses are less likely to be approved for a small-business loan, compared to companies owned by men. Nevertheless, established women-owned businesses with good credit and strong finances shouldn’t have too much trouble getting a loan.
To apply for a women’s business loan, you should first compare options and find the lender that can offer the lowest rates, while still meeting your financing needs. You’ll likely need to provide basic information about you and your business, financial statements and tax returns to complete an application.
Depending on the loan you choose, you may also have to provide documentation showing your company is majority-owned and operated by women.