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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
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for established businesses | $5,000,000 | 650 | with Fundera by NerdWallet |
Fora Financial - Online term loan | 4.5/5 Best for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
SBA Microloan | Best for microloans | $50,000 | 620 | with Fundera by NerdWallet |
National Funding - Equipment Financing | 4.2/5 Best for equipment loans | $150,000 | 600 | with Fundera by NerdWallet |
Bank of America Business Advantage Unsecured Term Loan Read Review | 4.8/5 Best for bank business loans | Undisclosed | 700 | Read Review |
Fundbox - Line of credit Read Review | 4.9/5 Best for startups | $150,000 | 600 | Read Review |
Accion Opportunity Fund - Small Business Working Capital Loan Read Review | 4.6/5 Best for minority women | $250,000 | 600 | Read Review |
Huntington National Bank - Lift Local Business Program Read Review | Best for women veterans | $150,000 | Undisclosed | Read Review |
Here are 8 best small-business loans for women
Best for established businesses
Best for bad credit
Best for microloans
Best for equipment loans
Best for bank business loans
Best for startups
Best for minority women
Best for women veterans
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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
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
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
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.
Fora Financial - Online term loan
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.
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.
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
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
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.
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.
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
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 - Equipment Financing
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.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $250,000.
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
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.
Bank of America Business Advantage Unsecured Term Loan
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.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: Two years.
- Minimum annual revenue: $100,000.
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
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly -- accepts borrowers with a minimum of three months in business.
- 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.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox - Line of credit
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly -- accepts borrowers with a minimum of three months in business.
- 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.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
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
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
Accion Opportunity Fund - Small Business Working Capital Loan
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 12 months.
- Minimum annual revenue: $50,000.
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
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
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.
Qualifications:
- No bankruptcies in the last 4 years.
- Requirements for credit score, time in business and business revenue not disclosed.
A closer look at the best business loans for women
SBA 7(a) loan
- 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
- Minimum credit score:700.
- Minimum time in business:24months.
- Minimum annual revenue: $100,000.
Fora Financial - Online term loan
- 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
- Minimum credit score:600.
- Minimum time in business:3months.
- Minimum annual revenue: $100,000.
Accion Opportunity Fund - Small Business Working Capital Loan
- Minimum credit score:600.
- Minimum time in business:12months.
- Minimum annual revenue: $50,000.
SBA Microloan
- 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
- No bankruptcies in the last 4 years.
- Requirements for credit score, time in business and business revenue not disclosed.
National Funding - Equipment Financing
- Minimum credit score:600.
- Minimum time in business:6months.
- Minimum annual revenue: $250,000.
What is a small-business loan for women?
Types of small-business loans for women
SBA loans
🤓 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
Online loans
Microloans
How to get a business loan for women
1. Decide which loan type is right for you
2. Check that you meet minimum qualification requirements
- 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)
Estimate payments to understand the cost of a business loan
Over the course of the loan, expect to pay
$0.00/mo
Payment breakdown
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4. Find the right lender for you
Compare Lender Types
5. Prepare your materials and apply
- 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.
6. Review your loan agreement
Other resources for female entrepreneurs
How to get certified as a women-owned business
- 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.
- 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
- 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.
Methodology
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.