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Nov 13, 2023
5 min read
Last update: May 17, 2024

Empowering Entrepreneurs: Small Business Loans for Women

Starting a woman-owned small business is an incredible endeavor. Women own over 12 million businesses and employ around 10.1 million workers in the United States. 

Nonetheless, starting a business can be a challenge if you don’t have the working capital upfront.

The good news is that there are all kinds of small business financing opportunities and small business loan providers to help women achieve their dreams on generous repayment terms. The bad news is that women entrepreneurs typically don’t seek out funding as often as their male counterparts do. 

In this article, we’ll cover the basics of small business loans for women so you can learn more about your available funding options and feel empowered to take action. 

The Rise of Female Entrepreneurs

Female entrepreneurship is nothing new in the United States. Since the beginning of the 21st century, an increasing number of women are starting new businesses and achieving remarkable growth. 

In fact, female entrepreneurship is leaving a mark on the country in a few ways:

  • Women own 42% of all businesses in the United States (Source). 
  • Women are more likely to start a business than men in the U.S. (Source).
  • Woman-owned businesses have increased by 114% since the early 2000s (Source). 

While woman-owned companies are increasing across the country, there are significant hurdles women must face as entrepreneurs. 44% of women-owned businesses are positioned in low-growth yet impactful industries, from child care to home healthcare. 

Not to mention that women usually don’t apply for small business loans as often as men. And when they do, business lenders deny more American women than their male counterparts. 

This denial makes it all the more important for women to secure competitive small business loans from online lenders to maximize their companies’ growth and opportunities. 

At SBG Funding, we are committed to empowering women business owners. We offer women the best small business loans to help them realize their ideas. 

Understanding Small Business Loans for Women

Many women start businesses in competitive, male-dominated industries and need to secure funding to keep up. As a result, women entrepreneurs won’t just benefit from small business loans. 

They’ll need small business loans tailored to their specific needs. SBG Funding offers a wide range of business financing options to empower female entrepreneurs and open up countless doors of opportunity. 

We encourage female entrepreneurs to take out small business loans to scale their companies.

Types of Small Business Loans for Women 

There are various small business loans geared toward female entrepreneurs. These loans include:

  • Traditional term loans: These are standard loans offered by traditional lenders that deposit a lump sum into your bank account. You’ll be required to pay back the loan in regular intervals at a fixed interest rate. Like a credit card, interest rates and loan amounts are based on your credit score and profile.
  • SBA loans and grants: The U.S. Small Business Administration (SBA) offers several loans and small business grants to empower and encourage female business owners. It’s even possible to receive a business line of credit from the federal government.
  • Microloans and community-based loans: These capital loans are geared toward underserved women, low-income, veteran, minority entrepreneurs, and other borrowers who may find it challenging to secure a loan through a traditional bank. Nonprofits and credit unions can issue SBA Microloan programs. 

As you can see, many financial institutions, government entities, and communities offer loan programs that aim to foster female entrepreneurship in all industries nationwide. 

Signs You Need a Small Business Loan

Applying for a small business loan doesn’t just mean that your business needs the working capital to stay afloat. Business owners take out small business loans to manage cash flow while planning future growth initiatives. 

With that said, here are the signs that show you may need a small business loan:

You Can’t Pay Your Employees

Making payroll is essential to staying in business. Keeping your employee paid on time also helps you to establish trust and reward them for their hard work. 

For this reason, you should strongly consider applying for a small business loan if you find it difficult to pay your employees. A small business loan can provide you the funds to complete your payroll until your company gets back on track. 

Your Team Can’t Keep Up with Demand

Receiving more orders and increasing your sales volume is exciting for female entrepreneurs until you realize you don’t have the resources or team to keep up. 

Hiring more employees can give your company the resources to scale and best serve your customers. With a small business loan, you can finance your recruitment process and add more vital members to your team. 

You Need More Inventory

If your business has run out of inventory, you don’t have long to acquire more supplies to keep your business running smoothly. Applying for a small business loan makes buying more inventory for your business in peak seasons possible. 

Applying for a loan is especially beneficial if you don’t have enough working capital to buy more inventory in a short-term window. Managing inventories is one of the common reasons why businesses seek a small business loan or line of credit. 

You Need New Equipment

Whether you run a restaurant or a trucking company, you can use a small business loan to purchase more equipment for your business. 

You can upgrade your existing equipment or make new purchases to reinforce your operations and deliver better products to your customers. 

You Need to Manage the Off-Season

If you run a seasonal business, you’ll still need to manage your bills and debts, even if your business isn’t profitable. Applying for a small business loan gives women-led businesses the necessary funds to stay in operation when revenue is below expectations. 

If you choose to apply for a small business loan, you should begin the application process before the off-season begins. Waiting until the last minute could disrupt your business. 

On top of that, submitting an early application allows you to show your lender good revenue numbers to increase your approval chances. 

You Want to Pursue a Business Opportunity

Again, not all business owners apply for a small business loan to stay afloat. You could also secure a loan to pursue a new business opportunity. 

For example, you could apply for a small business loan if you want to fund a marketing campaign to promote your local business. This loan can help you maximize your cash flow and bankroll ambitious growth projects for your business. 

On top of that, you can structure your loan on reasonable terms to make repayment convenient. 

Qualifications for Women-Owned Business Loans

SBG Funding offers flexible loan programs for woman-owned businesses. Here are our eligibility criteria:

  • 600+ FICO score
  • $350k in annual revenue
  • 6+ months in business
  • 4 most recent bank statements

With an 85% approval rate, apply today and receive your results as soon as possible.

Kickstart Your Woman-Owned Small Business With SBG Funding

Securing business funding for your woman-owned business shouldn’t be a challenge. At SBG Funding, we provide versatile loan options for a wide range of minority-owned businesses.

Not convinced yet? Check out our latest video testimonials from women-led businesses like Helping Hands, Tosi, and Westside Joes
Apply now to take advantage of our quick and easy loan application process.

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