BEST OF
6 Best Small-Business Loans for Women of March 2021
Lenders and other organizations offer financing, assistance and support for women-owned businesses.
Women face many obstacles when starting or running a company, including getting approved for small-business loans.
Female-owned businesses are less likely to receive financing than male-owned businesses, according to the Federal Reserve. But small-business loans for women are available, and resources like government-backed Women’s Business Centers offer training to help bridge the funding gap.
The best business loan is the one that costs you the least while fitting your company’s needs. Here are small-business loans for women — including options for startups and bad credit borrowers — plus information on grants and other programs for female entrepreneurs.
LOOKING FOR CORONAVIRUS BENEFITS INFORMATION?
Women face many obstacles when starting or running a company, including getting approved for small-business loans.
Female-owned businesses are less likely to receive financing than male-owned businesses, according to the Federal Reserve. But small-business loans for women are available, and resources like government-backed Women’s Business Centers offer training to help bridge the funding gap.
The best business loan is the one that costs you the least while fitting your company’s needs. Here are small-business loans for women — including options for startups and bad credit borrowers — plus information on grants and other programs for female entrepreneurs.
LOOKING FOR CORONAVIRUS BENEFITS INFORMATION?
Easily get real, personalized small business loan rates to compare — not just ranges or estimates.
It’s free and won’t affect your credit.
on Fundera's website
Our picks for
Small-business loans for women with bad or average credit

Fundbox - Line of credit
Est. APR
10.10 - 79.80%
Min. Credit Score
550
Pros
- Cash can be available by the next day.
- Low minimum credit score requirement.
Cons
- Rates are high compared to traditional banks.
Qualifications
- Minimum credit score: 550.
- Minimum time in business: 3 months.
- Minimum annual revenue: $50,000.

OnDeck - Online term loan
Est. APR
9.00 - 99.00%
Min. Credit Score
600
Pros
- Cash can be available within the same business day.
- Requires low minimum credit score.
- Less paperwork than most lenders.
Cons
- Fixed-fee structure means early repayment will not save interest.
- Requires frequent (daily or weekly) repayments.
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 3 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 2 years.
Our picks for
Women-owned businesses older than 2 years

Live Oak Bank - SBA loan
Est. APR
5.50 - 8.25%
Min. Credit Score
650
Pros
- Competitive rates among online lenders.
- Faster than getting an SBA loan from a bank.
Cons
- Must have strong financials, supported by personal and business tax returns for the past 3 years.
- Only for specific industries.
- Stringent rules on use of proceeds.
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 650.
- Cash flow must be able to support the debt.
- No bankruptcies or foreclosures.
- No outstanding tax liens.

Credibility Capital - Online term loan
Est. APR
19.99 - 24.99%
Min. Credit Score
680
Pros
- Competitive rates among online lenders.
- No prepayment penalty.
- Extra monthly payments can save interest cost.
Cons
- Short repayment term results in higher payment amounts.
- Requires high minimum credit score and revenue.
- Requires business lien and may require personal guarantee.
- Not available in Nevada, North Dakota, South Dakota or Vermont.
Qualifications
- Minimum credit score: 680.
- Minimum time in business: 2 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 5 years.

Funding Circle - Online term loan
Est. APR
12.18 - 36.00%
Min. Credit Score
660
Pros
- Cash can be available within 3 business days.
- Competitive rates among online lenders.
- No minimum revenue requirement.
Cons
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 660.
- Minimum time in business: 2 years.
- Minimum annual revenue: None.
- No bankruptices in the past 7 years.
Our pick for
Businesses with unpaid invoices

BlueVine - Invoice factoring
Est. APR
15.00 - 68.00%
Min. Credit Score
530
Pros
- Finances larger invoices.
- Cash can be available within the same day.
- Accepts low minimum credit score and short time in business.
Cons
- Not for businesses that do not invoice on net terms.
- Loan amount is tied to the value of your invoices.
- Dependency on customers to pay their bills on time.
Qualifications
- Minimum credit score: 530.
- Minimum time in business: 3 months.
- Minimum annual revenue: $100,000.
Easily get real, personalized small business loan rates to compare — not just ranges or estimates.
It’s free and won’t affect your credit.
on Fundera's website
Summary of Best Small-Business Loans for Women of March 2021
Lender | Best For | Est. APR | Min. Credit Score |
---|---|---|---|
![]() Fundbox - Line of credit | Best for Small-business loans for women with bad or average credit | 10.10 - 79.80% | 550 |
![]() OnDeck - Online term loan | Best for Small-business loans for women with bad or average credit | 9.00 - 99.00% | 600 |
![]() Live Oak Bank - SBA loan | Best for Women-owned businesses older than 2 years | 5.50 - 8.25% | 650 |
![]() Credibility Capital - Online term loan | Best for Women-owned businesses older than 2 years | 19.99 - 24.99% | 680 |
![]() Funding Circle - Online term loan | Best for Women-owned businesses older than 2 years | 12.18 - 36.00% | 660 |
![]() BlueVine - Invoice factoring | Best for Businesses with unpaid invoices | 15.00 - 68.00% | 530 |
Types of small-business loans for women
Lenders may advertise small-business loans for women, but programs that specifically prioritize female entrepreneurs are hard to come by.
Still, women-owned companies may be able to tap into multiple types of business loans, including:
SBA loans. If you have solid finances and an established business, consider an SBA loan. Banks, online lenders and other financial institutions offer these loans, which are backed by the U.S. Small Business Administration. Women who own more than half of a small business received 14%, or $1.1 billion, of the SBA 7(a) loans approved in fiscal year 2020, according to the SBA.
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 most recent data finding 13.2% and 18.3% approval rates at large and small banks, respectively.
Online loans. If you have a lower credit score (a FICO 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 terms loans, lines of credit and invoice factoring), specialize in speedy funding and have looser eligibility requirements than banks. The trade-off for those conveniences is borrowing costs may be higher than other options.
Microloans. The SBA offers microloans through nonprofit organizations. For example, Grameen America provides loans of $2,000 to $15,000 to entrepreneurial women who live in poverty; other SBA microlenders may offer funding up to $50,000. Microloans can be a good option if you can’t qualify with a bank or online lender or have a small financing gap. Find providers in your area on the SBA website.
Funding options for women-owned startups
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 in addition to options like microloans and crowdfunding, there is other financing for startups.
For example, 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 who are starting out or looking for 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.
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.
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.
Last updated on February 25, 2021
To recap our selections...
NerdWallet's Best Small-Business Loans for Women of March 2021
- Fundbox - Line of credit: Best for Small-business loans for women with bad or average credit
- OnDeck - Online term loan: Best for Small-business loans for women with bad or average credit
- Live Oak Bank - SBA loan: Best for Women-owned businesses older than 2 years
- Credibility Capital - Online term loan: Best for Women-owned businesses older than 2 years
- Funding Circle - Online term loan: Best for Women-owned businesses older than 2 years
- BlueVine - Invoice factoring: Best for Businesses with unpaid invoices
Frequently asked questions
Women can get small-business loans through 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.
Some online lenders accept borrowers with a bad personal credit score (300 to 629 FICO). Interest rates are high on bad credit business loans, which are best used for emergency cash or short-term needs.