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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 with Fundera by NerdWallet | 4.7/5 Best for bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for microloans | $50,000 | 620 | with Fundera by NerdWallet |
National Funding - Equipment Financing with Fundera by NerdWallet | 4.6/5 Best for equipment loans | $150,000 | 600 | with Fundera by NerdWallet |
Bank of America Business Advantage Unsecured Term Loan | 5.0/5 Best for bank business loans | Undisclosed | 700 | Read Review |
Fundbox - Line of credit | 4.9/5 Best for startups | $150,000 | 600 | Read Review |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.9/5 Best for minority women | $250,000 | 600 | Read Review |
Huntington National Bank - Lift Local Business Program | 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
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
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
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
10.50-14.00%
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.
7(a) loans are issued by private lenders and backed by the SBA. They offer long repayment terms and low interest rates.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- 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.
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
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
Max loan amount
$1,500,000
Min. credit score
570
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 can be a good fit for borrowers who may fall short of qualifying for traditional bank financing or young but established small businesses looking for speedy financing.
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.
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
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%
Offered through nonprofit community-based organizations, microloans can provide funding up to $50,000 for working capital and other needs.
SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.
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
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
Max loan amount
$150,000
Min. credit score
600
National Funding offers equipment financing for agricultural machinery; commercial fleet vehicles; medical, construction, office and restaurant equipment; and other business-essential equipment.
Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.
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.
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
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
Max loan amount
Undisclosed
Min. credit score
700
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’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
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.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: 24 months.
- 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
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
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
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 offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
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).
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: 3 months.
- Minimum annual revenue: $30,000.
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
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
Max loan amount
$250,000
Min. credit score
600
Est. APR
8.49-24.99%
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 is a good option for businesses that haven't been able to secure traditional financing. The lender targets its funding efforts toward minority, women and low-to-moderate-income entrepreneurs.
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.
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
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
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’s Lift Local Business loan program is designed to support minority-, woman- and veteran-owned small businesses from startup and on.
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
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:24months.
- 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.
If you’re a female entrepreneur with bad credit, it may be more difficult to get a loan for your business. There are a few options for bad-credit business loans, but keep in mind interest rates may be higher than alternatives.
Some online lenders are willing to work with businesses with bad credit, especially if they have strong finances. Fora Financial, for example, only requires a minimum credit score of 570, and you may be able to work with Fundbox with a 600 credit score.
Nonprofit lenders and community financial development institutions (CDFIs) also offer small-business loans for women with bad credit. These lenders often provide funding to traditionally underserved business owners, which can include those with poor or limited credit.
For instance, TruFund is a CDFI that operates in New York, New Jersey, Alabama, Louisiana, Texas and Georgia. The organization issues a variety of business loans, including term loans that only require a minimum credit score of 600 to qualify.
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:3months.
- 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:12months.
- Minimum annual revenue: $50,000.
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.
Nonprofit lenders and community development companies who applied for the new Community Advantage Small Business Lending Company license can offer funding through the 7(a) loan program. CA SBLCs prioritize small-business loans for women and other borrowers in underserved markets.
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.
U.S. Bank has a special Business Diversity Lending Program that offers loans and lines of credit to women-, veteran- and minority-owned businesses with more flexible qualifications than its standard business loans.
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.
Business loans offered by banks and credit unions, as well as SBA loans may be a good fit for women veteran entrepreneurs.
The upfront guarantee fee for SBA Express loans (loan amounts up to $500,000) is waived for a veteran or the spouse of a veteran. And the SBA’s Military Reservist Economic Injury Disaster Loan (MREIDL) program can be used to cover regular business operating costs when you have an essential employee who is called up to active duty as a military reservist.
Women veterans can get a 25% discount on loan administration or origination fees for certain small-business loans offered by Bank of America. Navy Federal Credit Union is a credit union that caters specifically to veterans and active military members to provide a variety of business financing options.
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:6months.
- Minimum annual revenue: $250,000.
» MORE: What is a prepayment penalty?
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.
Estimate payments to understand the cost of a business loan
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Get personalized small-business loan rates to compare
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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.
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.
The SBA’s Office of Women’s Business Ownership offers a number of advocacy, outreach and education programs to assist women entrepreneurs. This includes business training and counseling (in multiple languages and dialects) as well as access to capital and federal procurement (contracting) opportunities.
Created by the Freeport-McMoran Foundation, DreamBuilder is an online education program for female business owners. The program offers two course options — one course is designed to help entrepreneurs start their business, while the other focuses on how to finance your operations. It’s free to enroll in the DreamBuilder courses, and they’re available in both English and Spanish.
The Women’s Business Centers are a network of more than 160 educational centers located in all 50 states, the District of Columbia and Puerto Rico 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.
The SBA-run Women-Owned Small Businesses Federal Contracting Program is for women-owned businesses that are interested in government contracts. It tries to level the playing field for women business owners by limiting the competition they face for certain contracts. There are also some contracts that are reserved for disadvantaged women-owned small businesses.
Seneca, a global platform with the mission of advancing women and girls, and Bank of America created the Access to Capital Directory to provide information about organizations that provide funding to women-owned businesses. The directory includes funding types such as CDFIs, nonbank institutions, venture capital and angel investors, among others. However, it doesn’t include listings for bank loans.
The nonprofit organization Women’s Business Enterprise National Council (WBENC) offers programs, events and networking opportunities for women-owned businesses. Its WBENC Certification program is a national certification program for women-owned businesses that can potentially open the door to corporate and government contracts for many women.
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.
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.
The SBA certifies women-owned contractors through its Women-Owned Small Business Federal Contract Program (WOSB Program). If you become WOSB certified, you are given special access to federal contracts that are set aside for members of the program. You can apply to become certified through the SBA website.
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. Certification doesn’t guarantee awards, but it helps women and others compete for contracts set aside for small business and also provides a number of benefits including free training and business development assistance.
In addition to the federal government, local business administrations may provide special certifications for their state, and the qualifications may be more lenient than national initiatives.
Under the VA's Vets First program, businesses owned by women veterans can be certified as veteran-owned small businesses (VOSBs) through the SBA website. VOSB certification can allow you to compete for federal contracts including sole-source and set-aside contracts at the Department of Veterans Affairs.
Certification as service-disabled veteran-owned small businesses (SDVOSBs) is also offered. This certification allows you to compete for contracts across federal agencies and is not limited to just the Department of Veterans Affairs.
National organizations like the Women’s Business Enterprise National Council (WBENC) act as networks that utilize local organizations all over the country to help you get certified as a women-owned business. Once you apply, your application is processed and approved by a local partner. With private agencies, however, you may be charged a processing fee that’s either flat or based on your business’s revenue.
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?
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Frequently Asked Questions
Banks, SBA lenders and online lenders don’t typically offer loans specifically for women-owned businesses, but may provide resources that can be helpful in getting funding. You're more likely to find business loans designed for women at community based organizations such as CDFIs, microlenders and nonprofits.
Women can get small-business loans through nonprofit lenders, online lenders, credit unions and banks. Online lenders offer more speed, convenience and looser qualification requirements than most credit unions and banks, but they may charge higher rates.
According to the Federal Reserve, women-owned businesses are less likely to be approved for a small-business loan, compared with companies owned by men. However, established women-owned businesses with good credit and strong finances are typically in the best position to get a loan.
To apply for a women’s business loan, you should first compare options and find the lender that can offer the lowest rates, while still meeting your financing needs. You’ll likely need to provide basic information about you and your business, financial statements and tax returns to complete an application.
Depending on the loan you choose, you may also have to provide documentation showing your company is majority-owned and operated by women.
Getting certified as a women-owned business can be helpful when seeking business funding in the form of business loans and grants. Certification can also open the doors to contract opportunities in the federal government and other organizations. The SBA offers certification for Women-Owned Small Business as well as veteran-owned small businesses.