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8 Best Small-Business Loans for Women

By Randa Kriss
Last updated on November 4, 2024
Edited by Sally Lauckner
Fact checked and reviewed
Bank loans, SBA loans, online loans and microloans are some of the financing options available to women-owned businesses.

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Here are the best business loans for women — including options for minority women, women veterans and those with startups or bad credit — plus information on grants and other programs for female entrepreneurs.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 8 best small-business loans for women

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

SBA 7(a) loan

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Best for established businesses

$5,000,000650

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Fora Financial - Online term loan

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4.8/5

Best for bad credit

$1,500,000570

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SBA Microloan

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Best for microloans

$50,000620

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National Funding - Equipment Financing

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4.5/5

Best for equipment loans

$150,000600

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Bank of America Business Advantage Unsecured Term Loan

Read Review
4.9/5

Best for bank business loans

Undisclosed700
Read Review

Fundbox - Line of credit

Read Review
5.0/5

Best for startups

$150,000600
Read Review

Accion Opportunity Fund - Small Business Working Capital Loan

Read Review
4.8/5

Best for minority women

$250,000600
Read Review

Huntington National Bank - Lift Local Business Program

Read Review

Best for women veterans

$150,000Undisclosed
Read Review

Here are 8 best small-business loans for women

Best for established businesses

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

650

Best for bad credit

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

570

Best for microloans

U.S. Small Business Administration

Max Amount

$50,000

Min. Credit Score

620

Best for equipment loans

National Funding

Max Amount

$150,000

Min. Credit Score

600

Best for bank business loans

Bank of America

Max Amount

Undisclosed

Min. Credit Score

700

Best for startups

Fundbox

Max Amount

$150,000

Min. Credit Score

600

Best for minority women

Accion

Max Amount

$250,000

Min. Credit Score

600

Best for women veterans

Huntington National Bank

Max Amount

$150,000

Min. Credit Score

Undisclosed

I'M INTERESTED IN:

Our pick for

established businesses

SBA 7(a) loans are the most common type of SBA loan and can be used for a variety of purposes. They’re a good option for long-term financing and maximum loan limits of up to $5 million. In fiscal year 2024, almost 21% of 7(a) loans were given to businesses that are majority female-owned, according to the SBA.

SBA 7(a) loan

Read Review

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Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.75-14.25%

Pros

  • Large borrowing maximums.
  • Interest rates are capped.
  • Long repayment terms available.

Cons

  • Collateral is typically required.
  • Longer processing times than online lenders.
Low interest rate

SBA 7(a) loan

Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.75-14.25%
Low interest rate

Our pick for

bad credit

If your credit score is at least 570 and you’ve been in business for a minimum of six months, you may be able to qualify for a business loan from Fora Financial. Note that Fora charges a factor rate instead of an interest rate, which can make it harder to compare the cost of lending products.

Fora Financial - Online term loan

Read Review

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Max loan amount
$1,500,000
Min. credit score
570

Pros

  • Cash can be available quickly.
  • Get a discount for prepaying.
  • No collateral required.
  • Low minimum credit score requirement.

Cons

  • Charges a factor rate that makes it more difficult to compare costs with other lenders.
  • Can’t build business credit.
  • Longest loan term is 18 months.
  • Charges an origination fee.

Fora Financial - Online term loan

NerdWallet rating 
4.8/5
Max loan amount
$1,500,000
Min. credit score
570

Our pick for

microloans

Offered through nonprofit community-based organizations, microloans can provide funding up to $50,000 for working capital and other needs.

SBA Microloan

Read Review

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Max loan amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%

Pros

  • Can be used for a variety of funding purposes.
  • Designed to finance traditionally underserved businesses.
  • Startups and business owners with bad credit may be able to qualify.
  • Competitive interest rates, low fees and long repayment terms.
  • Intermediaries typically offer business training and educational resources.

Cons

  • Loan amounts max out at $50,000.
  • Can’t be used to pay existing debt or purchase real estate.
  • Collateral is likely required.
  • Slow funding timeline.

SBA Microloan

Max loan amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%

Our pick for

equipment loans

National Funding offers equipment financing for agricultural machinery; commercial fleet vehicles; medical, construction, office and restaurant equipment; and other business-essential equipment.

National Funding - Equipment Financing

Read Review

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Max loan amount
$150,000
Min. credit score
600

Pros

  • Funding in as little as 24 hours.
  • Prepayment discounts available.
  • Offers loans to startups and borrowers with bad credit.
  • No collateral or down payment required.

Cons

  • Charges a factor rate that makes it more difficult to compare costs with other lenders.
  • Requires higher annual revenue than other online lenders.
  • Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
  • Charges an origination fee.

National Funding - Equipment Financing

NerdWallet rating 
4.5/5
Max loan amount
$150,000
Min. credit score
600

Our pick for

bank business loans

Bank of America offers a flexible term loan that doesn’t require collateral and can be used for a range of business purposes. Interest rate discounts and other benefits may be available through the Preferred Rewards program.

Bank of America Business Advantage Unsecured Term Loan

Read Review
Max loan amount
Undisclosed
Min. credit score
700

Pros

  • Bank loan with competitive interest rates.
  • No collateral required.
  • Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.

Cons

  • Can be slow to fund.
  • Prepayment fees may apply to early repayments.
  • Must be an existing Bank of America customer to apply online.
  • Charges an origination fee.

Bank of America Business Advantage Unsecured Term Loan

NerdWallet rating 
4.9/5
Max loan amount
Undisclosed
Min. credit score
700

Our pick for

startups

Fundbox requires only a minimum of three months in business and a credit score of 600. The lender doesn’t charge prepayment penalties, maintenance fees or inactivity fees.

Fundbox - Line of credit

Read Review
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%

Pros

  • Financing available within one business day after approval.
  • Simple application with minimal documentation required.
  • Low minimum credit score, time in business and annual revenue requirements.
  • No prepayment penalties, account maintenance fees or inactivity fees.

Cons

  • Rates are high compared with traditional banks.
  • Weekly repayments required over a short term (maximum of 24 weeks).
May fund quickly

Fundbox - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
May fund quickly

Our pick for

minority women

Nonprofit lender Accion Opportunity Fund says 90% of its borrowers are women, people of color and/or low-to-moderate income. It offers educational resources and other types of support for borrowers.

Accion Opportunity Fund - Small Business Working Capital Loan

Read Review
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%

Pros

  • Loan amounts from $5,000 to $250,000.
  • Customized loan terms.
  • No prepayment penalty.

Cons

  • Slower processing speed compared with online lenders.
  • Charges an origination fee.
  • Not available in all U.S. states.

Accion Opportunity Fund - Small Business Working Capital Loan

NerdWallet rating 
4.8/5
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%

Our pick for

women veterans

Huntington National Bank’s Lift Local Business loan program can be a source of funding for women veterans who need capital to start a business or operate an existing one.

Huntington National Bank - Lift Local Business Program

Read Review
Max loan amount
$150,000
Min. credit score
Undisclosed

Pros

  • Loans starting as low as $1,000.
  • No origination fees.
  • SBA loans offered with SBA fees paid by Huntington.
  • Free financial entrepreneurial courses.

Cons

  • Low maximum loan amounts.
  • Program only available in certain U.S. states.
  • Limited information on terms and fees available online.

Huntington National Bank - Lift Local Business Program

Max loan amount
$150,000
Min. credit score
Undisclosed

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A closer look at the best business loans for women

SBA 7(a) loan

Best for: Established businesses
How it benefits women entrepreneurs: The SBA has been making a concerted effort to equalize the lending playing field and ensure that women entrepreneurs are able to access capital that empowers them to grow their businesses. In FY 2024, for example, the SBA has loaned more than $4.8 billion in 7(a) funds to businesses that are majority women-owned.
With an SBA 7(a) loan, women business owners have access to low interest rates and long repayment terms, plus the versatility to use the funds for working capital, supplies, inventory, equipment, real estate and other purchases. And because of the SBA guarantee, lenders can often relax their qualification requirements, which makes it easier to qualify for these loans.
Qualifications:
  • For-profit U.S. business.
  • Unable to access credit on reasonable terms from nongovernment sources.
  • Financial qualifications determined by individual lender.

Bank of America Business Advantage Unsecured Term Loan

Best for: Bank business loans
How it benefits women entrepreneurs: For women business owners who don’t have the ability or prefer not to put down a security deposit for a loan, the Business Advantage unsecured term loan offers a lump sum of capital for a variety of business needs. Additionally, Bank of America offers several resources through its Center for Business Empowerment, including a free educational program through a collaboration with Cornell University and a database of various funding sources available to women entrepreneurs.
For established businesses with solid revenue and excellent credit scores, a traditional lender like Bank of America can typically offer the best interest rates and terms.
Qualifications:
  • Minimum credit score:
    700
    .
  • Minimum time in business:
    24
    months.
  • Minimum annual revenue: $100,000.

Fora Financial - Online term loan

Best for: Bad credit
How it benefits women entrepreneurs: Fora Financial’s minimum credit score requirement is one of the lowest available for online term loans, and it doesn’t require collateral. It therefore provides a valuable funding opportunity for women entrepreneurs who have less-than-ideal credit scores and who prefer not to secure a loan with physical collateral. Fora is also unique among many of its competitors for offering discounts for early payments (some lenders, particularly banks, actually penalize you for this).
Qualifications:
  • In business for at least six months.
  • At least $20,000 per month in revenue.
  • No open bankruptcies or dismissed bankruptcies within the past year.

Fundbox - Line of credit

Best for: Startups
How it benefits women entrepreneurs: Fundbox is friendly to women who have recently started their businesses due to its low annual revenue and time in operation requirements. Women entrepreneurs may also appreciate the Minority Owned Business section of its online resource center, which includes a wealth of blog posts and guides designed to support and uplift women and minority business owners.
Qualifications:
  • Minimum credit score:
    600
    .
  • Minimum time in business:
    3
    months.
  • Minimum annual revenue: $100,000.

Accion Opportunity Fund - Small Business Working Capital Loan

Best for: Minority women
How it benefits women entrepreneurs: Accion Opportunity Fund describes nearly 90% of its clients as women, people of color or low-to-moderate income borrowers. It is a good option for women with businesses that have been in operation for at least a year and that haven’t been able to secure financing from other types of lenders. Accion also offers business mentoring and educational resources that can be helpful in growing your business.
Qualifications:
  • Minimum credit score:
    600
    .
  • Minimum time in business:
    12
    months.
  • Minimum annual revenue: $50,000.

SBA Microloan

Best for: Microloans
How it benefits women entrepreneurs: SBA microloans can be a good option for women who need a small-business loan at a low interest rate. Loan funds can be used for working capital or to make supply, inventory or equipment purchases. In addition to its commitment to funding women-owned businesses, the SBA has dedicated resources and programs for supporting women in business, including the Office of Women’s Business Ownership and the Women-Owned Small Businesses Federal Contract program (learn more about these programs below).
Qualifications:
  • Be a U.S. business.
  • Show your ability to repay the loan.
  • Personal guarantee and collateral likely required.
  • Specific financial qualifications determined by individual lender.

Huntington National Bank - Lift Local Business Program

Best for: Women veterans
How it benefits women entrepreneurs: For women looking for low-fee business loans, a Lift Local Business loan is a good option. There’s no origination fee or SBA fee charged, plus Huntington offers business planning, entrepreneurial courses and other services.
Qualifications:
  • No bankruptcies in the last 4 years.
  • Requirements for credit score, time in business and business revenue not disclosed.

National Funding - Equipment Financing

Best for: Equipment loans
How it benefits women entrepreneurs: National Funding’s equipment loans are startup-friendly and don’t require a high credit score. Because the equipment purchased is typically used to secure the loan, additional physical collateral is not required. Like Fora, National Funding offers prepayment discounts, which can help reduce the overall cost of the loan.
Qualifications:
  • Minimum credit score:
    600
    .
  • Minimum time in business:
    6
    months.
  • Minimum annual revenue: $250,000.

What is a small-business loan for women?

Loan products specifically and solely designed for women business owners exist on the market in very limited form. This is because the Federal Equal Credit Opportunity Act makes it illegal for lenders to discriminate against applicants based on their gender (and other protected factors). Some institutions, such as Grameen America, operate as a "special purpose credit program" under this act in order to legally target a specific group of applicants — in this case, women.
Many lenders, however, do offer loans with more flexible and reasonable qualification requirements, which helps to extend funding opportunities to a wider pool of business owner applicants — including women.
Additionally, a number of lenders offer resources such as mentorship and coaching programs, online courses and searchable lists of grants and alternative funding opportunities for underserved entrepreneurial communities.

Types of small-business loans for women

Although business loans set aside specifically for women-owned businesses are limited, the SBA and some lenders do invest in programs to help level the playing field when it comes to accessing capital. As a result, 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 use 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. 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. These loans have smaller maximum funding amounts of $500,000, but still offer competitive interest rates and repayment terms for those who qualify. The SBA strives to return decisions on Express loans within 36 hours.

🤓 Nerdy Tip

Utilizing the free resources offered by the SBA-affiliated agencies and nonprofit organizations, many of which are specifically designed for women business owners, can help you prepare a business plan, navigate the loan application process and secure funding.

Bank business loans

Small-business loans from banks typically come with the lowest costs but toughest eligibility qualifications. You will likely need good personal credit (a score in the 700s), at least a couple years in business and strong annual revenue to qualify.
When seeking financing, 42% of women-owned businesses apply for funding at large banks and 19% at small banks, according to data released in May 2024 from the Federal Reserve .
Huntington National Bank, with branches in 11 states, is one bank that offers a loan program targeted to women as well as veteran and minority business owners. Its Lift Local Business loan program features lower fees and credit score requirements, plus longer repayment terms.

Online loans

If you have a bad or fair 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 — although programs specifically for female entrepreneurs aren’t typically available.
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 often high borrowing costs.

Microloans

Microloans may be your best option when seeking business loans targeted specifically to women. 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 first-time business loans ranging from $500 to $2,500 to low-income women who live within 15 miles of one of its branch locations.
Microloans can be a good option if you can’t qualify with a bank or online lender or have a small financing requirement.

How to get a business loan for women

If you’ve decided that a loan is the right next step for your small business, then you’ll want to follow these steps to apply for a business loan.

1. Decide which loan type is right for you

With many options available to you, you’ll first want to understand the different types of business loans (see explanations of each above) and decide which option best suits your needs.

2. Check that you meet minimum qualification requirements

Qualification requirements vary by loan type and lender, so once you’ve decided which type of business loan is the right fit for you, you’ll want to check that you meet the minimums in these three key areas:
  • Credit score. Lenders will be asking for your personal credit score, which you can get from your credit report via the main credit bureaus. (You can also get it from NerdWallet.)
  • Time in business. Most online lenders will require a minimum of six months in business, while most banks will prefer at least two years.
  • Annual revenue. A few lenders will require only $50,000 in annual revenue, while most will look for $100,000 to $250,000.

3. Determine how much you need (and how much you can afford)

This is where you’ll need to get clear on exactly why you require funding and just how much you need. You’ll need to do some calculations at this stage to be sure that your cash flow and bottom line can support monthly loan payments — which will include interest.
Use our calculator below to help you estimate the anticipated cost of your loan.
Loan calculator icon

Estimate payments to understand the cost of a business loan

The pre-filled values are general estimates of possible terms you may see with this type of loan. Any loan offer’s final interest rate and terms will depend on your qualifications.

Over the course of the loan, expect to pay

$0.00/mo

Payment breakdown

Total principal
$0.00
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Total principal & interest
$0.00

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4. Find the right lender for you

Different lenders offer certain types of loans — some, for example, specialize in only equipment financing or business lines of credit while others offer a variety of loan types. Each lender will have its own set of requirements to qualify for a loan, and each will have both positive and negative factors to weigh when you’re considering your loan options.

Compare Lender Types

The graphic below may serve as a quick resource for you to understand your options and figure out which type of lender is a good fit for you.
A green bank.
BankTerm loans, business lines of credit, SBA loans and equipment loans. Longer terms and competitive rates but strict qualifications.
Paper documents wrapped with a ribbon that has a checkmark on it.
SBAMicroloans, disaster loans, working capital loans and business lines of credit. Lower rates, longer terms and larger amounts but strict qualifications and slow to fund.
Couple of hands typing on a laptop.
Online lenderTerm loans, business lines of credit and equipment loans. Fast approval and funding and flexible qualifications but higher rates and shorter terms.
Cash and coins.
MicrolenderMicroloans. Flexible qualifications and friendly to startups but smaller amounts and slow to fund.

5. Prepare your materials and apply

Your business loan application process will be more efficient and less stressful if you gather all of the required documentation ahead of time. Precise requirements will vary by loan and lender, but generally, you will need the following documents to apply for a small-business loan:
  • A valid form of identification (such as a driver’s license). 
  • Business plan.
  • Bank statements and tax returns (both business and personal).
  • Business financial documents like a balance sheet and P&L.
  • Business legal documents like licenses, permits and contracts.
  • Proof of collateral, if relevant.
The process for applying will also depend on the lender. Many banks will require you to apply in person or over the phone, while online lenders will have you complete the application entirely online.

6. Review your loan agreement

Once you’ve been approved for a small-business loan, you’ll need to sign an agreement to finalize the loan and receive the funds. It’s important to carefully and thoroughly review the loan agreement before you sign. Be sure to address any questions or concerns you may have with the lender before signing.

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.

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.
1. 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.
2. Find a certification agency
You can become certified through the federal government or a private agency, depending on your type of business.
3. 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.

Alternative funding options for women-owned businesses

If you aren’t able to qualify for a business loan, here are some additional options that may allow you to secure funding for you business:
  • Grants for women-owned businesses. Women-owned businesses can get free funding through small-business grants from private companies and nonprofit organizations. Here are places to look for small-business grants for women. Grants can be highly competitive, but if you do receive funding, that money may help you start or expand your business.
  • Business credit cards. Business credit cards also offer financing for women-owned small businesses that are starting out or need working capital. Qualification can be easier than for a business loan because approval generally relies more heavily on personal credit history instead of business credit score and revenue.
  • Equity financing for women-owned businesses. Equity financing can include angel investors, venture capitalists and crowdfunding. Although women-owned businesses can face the same obstacles with equity financing as they may with other types of funding, there are programs and companies that target female entrepreneurs, including startup businesses. IFundWomen and 37 Angels, for example, are companies that offer crowdfunding platforms as well as resources for women entrepreneurs to learn and connect with one another.
  • Bootstrapping. If you’re having trouble qualifying for funding, you may want to consider bootstrapping where you rely on your own personal resources to start or expand your business. Unlike equity financing, you’ll be able to retain full control of your business. However, you may be putting personal assets at risk, as is the case when you pull money out of a retirement account to use for your business.
Last updated on November 4, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: - Transparency of rates and terms. - Flexible payment options. - Fast funding times. - Accessible customer service. - Reporting of payments to business credit bureaus. - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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.

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