Best Small-Business Loans for Women 2020

Your business is less than a year old

It can be hard to qualify for a business loan if you haven’t been operating for at least a full year. Most lenders want to see a track record of strong finances, a solid direction for the business and an ability to repay debt.

But don’t fret if you’re just starting out; there are still financing options for startups, including microloans 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 small-business owners who are starting out or looking for working capital.

You have average or bad personal credit

If you have a low credit score (300 – 689), consider online lenders Kabbage or OnDeck. Borrowing costs may be high, but these lenders are good sources of speedy funds for emergency or short-term needs.

OnDeck provides term loans up to $500,000, with a minimum credit score of 600 required. However, you’ll also need a minimum of $100,000 in revenue and at least one year in business to qualify.

Your business is 1 to 2 years old

If your business has a bit of a track record and you have good credit, consider StreetShares or Credibility Capital.

StreetShares offers term loans to borrowers with personal credit scores of 600 or higher and annual revenue starting at $75,000. The company caps funding at 20% of your revenue, up to $250,000.

If you need more than $250,000, try Credibility Capital, which provides loans up to $400,000. It’s an option for borrowers who have good personal credit (680-plus), but fall short of traditional banks’ financing qualifications.

Your business is older than 2 years

If you have solid finances and an established business, consider an SBA loan or financing through SmartBiz and Funding Circle.

Women who own more than half of a small business received 14%, or $761 million, of the SBA 7(a) loans approved in 2018, according to the SBA.

SmartBiz typically provides faster funding than banks for SBA 7(a) loans. Low annual percentage rates starting around 10% and a 10-year loan term make SmartBiz an attractive option for business expansion loans.

Funding Circle offers an alternative if you don’t qualify for SBA loans or want funds quicker, as its loans are funded in 10 days on average.

Other resources for women entrepreneurs

Many organizations offer services and assistance to women entrepreneurs, including pro bono programs run by nonprofits and SBA-affiliated groups. These include programs that teach women how to start a business and train them in financial management and marketing.

Grants

Women-owned businesses can get help in the early stages through grants provided by government agencies and nonprofit organizations. Here are 10 places to look for small-business grants for women.

SBA Women’s Business Centers

The Women’s Business Centers are a network of nearly 100 educational centers around the United States that help women start and grow their businesses. These centers typically offer seminars and workshops on a range of topics, including how to start a business and raise capital.

National Association of Women Business Owners

The National Association of Women Business Owners, based in Washington, D.C., has 5,000 members and 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.

WomanOwned

This network of more than 3.5 million women-owned businesses worldwide offers online business information and networking assistance. WomanOwned maintains a database where women can get information on loans, grants and other funding sources.

Compare small-business loans

When shopping for loans, compare APRs, which give the true cost of borrowing, including all fees. NerdWallet’s small-business loans comparison tool can help.