Best Of
Lenders and other organizations offer financing, assistance and support for women-owned businesses.
There are more than 11.6 million women-owned businesses in the United States, which employ nearly 9 million people. 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 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.
Our picks for
Small-business loans for women with bad or average credit
10.10 - 79.80%
600
Pros
Cons
Qualifications:
9.00 - 99.00%
600
Pros
Cons
Qualifications:
Our picks for
Women-owned businesses older than 2 years
$5k - $5M
5 - 25 years
Starting at 5.5%
As fast as 2 weeks
Pros
Cons
Qualifications:
6.99 - 24.99%
650
Pros
Cons
Qualifications:
12.18 - 36.00%
660
Pros
Cons
Qualifications:
Our pick for
Businesses with unpaid invoices
15.00 - 68.00%
530
Pros
Cons
Qualifications:
| Lender | Best For | Est. APR | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Fundbox - Line of credit | Best for Small-business loans for women with bad or average credit | 10.10 - 79.80% | 600 | See Your Loan Options
on Fundbox's secure website |
OnDeck - Online term loan | Best for Small-business loans for women with bad or average credit | 9.00 - 99.00% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
Top SBA Lenders | Best for Women-owned businesses older than 2 years | Starting at 6% | 620 | See Your Loan Options
with Fundera by Nerdwallet |
Credibility Capital - Online term loan | Best for Women-owned businesses older than 2 years | 6.99 - 24.99% | 650 | See Your Loan Options
with Fundera by Nerdwallet |
Funding Circle - Online term loan | Best for Women-owned businesses older than 2 years | 12.18 - 36.00% | 660 | See Your Loan Options
with Fundera by Nerdwallet |
BlueVine - Invoice factoring | Best for Businesses with unpaid invoices | 15.00 - 68.00% | 530 | See Your Loan Options
with Fundera by Nerdwallet |
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 and SBA Community Advantage loans, which are available to startups in underserved communities. Banks, online lenders and other financial institutions offer these loans, which are backed by the U.S. Small Business Administration.
Some SBA loans, like the competitive 7(a) loan, require solid finances and an established business. Small businesses that are more than 50% female-owned received 14%, or $1.1 billion, of the SBA 7(a) loans approved in fiscal year 2020, according to the SBA. But other programs, such as SBA startup loans, are geared toward new businesses and borrowers with bad credit.
Startup funding is elusive, but targeting the right lenders and programs can improve your chances of securing a startup loan.
The SBA microloan program is designed specifically for startups and early-stage businesses (startups received 30% of all SBA microloans in fiscal year 2020). And SBA Community Advantage loans typically go to businesses that have been in operation for fewer than three years.
Additional funding options include nonprofit microloans 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.
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.
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.
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.
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 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.
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.
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.
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.
To recap our selections...
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.