Approximately 1.1 million employer businesses in the United States are women-owned, according to the most recent data from the U.S. Census Bureau. However, businesses run by women are less likely to be approved for a small-business loan than those run by men, 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 right loan for your business is the one that costs you the least while fitting your company’s needs. Here are some of the best small-business loans for women — including options for startups and bad credit borrowers — plus information on grants and other programs for female entrepreneurs.
How much do you need?
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 7 small-business loans for women
Lender | Best for | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for Government-backed small-business loans for women | $5,000,000 | 650 | with Fundera by NerdWallet |
Fundbox - Line of credit with Fundera by NerdWallet | Best for Small-business loans for women with bad or average credit | $150,000 | 600 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | Best for Small-business loans for women with bad or average credit | $250,000 | 600 | with Fundera by NerdWallet |
Credibility Capital - Online term loan with Fundera by NerdWallet | Best for Women-owned businesses older than 2 years | $500,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | Best for Women-owned businesses older than 2 years | $500,000 | 660 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for Startup business loans for women | $50,000 | 620 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | Best for Startup business loans for women | $250,000 | 625 | with Fundera by NerdWallet |
Our pick for
Government-backed small-business loans for women
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
7.75-10.25%
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Our picks for
Small-business loans for women with bad or average credit
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
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. credit score
600
Est. APR
29.90-97.30%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Our picks for
Women-owned businesses older than 2 years
Credibility Capital - Online term loan
Max Loan Amount
$500,000
Min. credit score
650
Est. APR
6.99-24.99%
Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.
Funding Circle - Online term loan
Max Loan Amount
$500,000
Min. credit score
660
Est. APR
10.64-31.85%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
Our picks for
Startup business loans 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.
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
15.00-78.00%
Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
How Much Do You Need?
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 requires solid finances and an established business. Small businesses that are more than 50% female-owned received 13.7%, or $5.01 billion, of the SBA 7(a) loans approved in fiscal year 2021, according to the SBA. But other programs, such as SBA startup loans, are geared toward new businesses and borrowers with bad credit.
- 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 October 2021 data finding 14.1% and 19.7% 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. 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 of $500 to $15,000 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.
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.
Through the SBA Community Advantage loan program, nonprofit lenders and community development companies offer funding to minority- and female-run businesses in low-income and rural communities.
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 80% of its clients are women, people of color or immigrants.
Some banks, like Union Bank, distribute minority business loans through specialty lending programs. Union 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.
Startup funding is elusive, but targeting the right lenders and programs can improve your chances of securing a startup business loan.
The SBA microloan program is designed specifically for startups and early-stage businesses (startups received 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 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 who are starting out or looking for working capital.
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.
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 June 30, 2022
To recap our selections...
7 Best Small-Business Loans for Women of August 2022
- SBA 7(a) loan: Best for Government-backed small-business loans for women
- 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
- 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
- SBA Microloan: Best for Startup business loans for women
- Bluevine - Line of credit: Best for Startup business loans for women
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.