Best Small Business Loans for Women

Women-owned businesses can get the funding they need from traditional banks, online lenders and small business grants.

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderUser ratingsBest for…Max. loan amountMin. interest rateTime in businessMin. credit score
Not applicableSBA loan$50,0008.00%*Not specified620Get business loan offers
Short-term loans$250,00027.30% APR**12 months625Get business loan offers
User ratings coming soonLines of credit$250,0003% to 9% for 6-month loans

6% to 18% for 12-month loans

9% to 27% for 18-month loans

12% to 18% for 24-month loans
12 months660Get business loan offers
User ratings coming soonLong-term loans$500,0007.49%24 months660Get business loan offers
Equipment financing$150,000Not disclosed6 months600Get business loan offers
Fast loans$150,0004.66%6 months600Get business loan offers
User ratings coming soonStartups$250,0008.49%12 monthsNot disclosedGet business loan offers
Bad credit$600,0001.11 factor rate6 months500Get business loan offers

* Interest rates vary depending on the intermediary lender, with maximum rates set by the SBA.

** OnDeck rate is the minimum APR offered to at least 5% of customers (not the lowest rate offered).

Learn more about how we chose our picks.

Financing options for women entrepreneurs

SBA Microloan: Best SBA loan for women

Up to $50,000

8.00% to 13.00%*

Up to 72 months

* Interest rates vary depending on the intermediary lender, with maximum rates set by the SBA.

Pros
  • Eligibility requirements tend to be less strict than other types of SBA loans
  • Available in all states
  • Capped interest rates
Cons
  • Collateral and/or a personal guarantee may be required
  • Smaller loan amounts compared to other financing options
  • Funds can’t be used to pay existing debt or purchase real estate

Why we picked it

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Women business owners needing smaller loan amounts can consider a microloan from the U.S. Small Business Administration (SBA). You can borrow up to $50,000 and use the funds for working capital, equipment, inventory, supplies or other common business expenses. The SBA microloan typically has less strict eligibility requirements than other types of SBA loans, making it an ideal option for business owners who may not qualify for a traditional SBA loan.

In addition, the SBA supports women-owned businesses with business training, resources and grant opportunities to help overcome obstacles in the business world.

Learn more about SBA microloans.

How to qualify

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In order to qualify, you’ll need to meet the SBA’s criteria of:

  • Min. credit score: 620
  • Min. time in business: Not specified
  • Min. annual revenue: Not specified

OnDeck: Best short-term loan for women

$5,000 to $250,000

27.30%*

18 to 24 months

*OnDeck rate is the minimum APR offered to at least 5% of customers (not the lowest rate offered).

Pros
  • Fair to low credit accepted
  • Can help build business credit
  • Same-day funding available in certain states
Cons
  • High starting interest rate
  • Not all types of industries are eligible
  • Funding not available in North Dakota

Why we picked it

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If you need quick funds for short-term expenses, a term loan from OnDeck could be a good fit. Funds go up to $250,000 and can cover supplies, inventory, equipment, payroll services, marketing campaigns or consolidating business debt. You can also get a business line of credit with OnDeck, allowing you to borrow money on an ongoing basis. However, average APRs tend to run high — 55.8% for term loans and 56% for lines of credit.

OnDeck offers additional support and online resources to help set women-owned businesses up for success.

Read our OnDeck review.

How to qualify

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In order to qualify, you’ll need to meet OnDeck‘s criteria of:

  • Min. credit score: 625
  • Min. time in business: 12 months
  • Min. annual revenue: $100,000

American Express Business Line of Credit: Best line of credit for women

$2,000 to $250,000

3% to 9% for 6-month loans
6% to 18% for 12-month loans
9% to 27% for 18-month loans
12% to 18% for 24-month loans

6 to 24 months

Pros
  • Speedy application process
  • Only pay interest on withdrawn amounts
  • No penalty for repaying your debt early
Cons
  • A personal guarantee is required
  • Confusing fee structure
  • Must link bank account to determine eligibility

Why we picked it

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Women entrepreneurs needing sporadic access to cash can consider the American Express Business Line of Credit. With credit limits up to $250,000, you can borrow what you need, when you need it — only paying interest on the withdrawn amounts. You must link your business bank account for quick approvals, with funds delivered in as soon as one to three business days.

American Express is dedicated to helping close the inequality gap for women in the business world. In fact, Amex Ventures recently partnered with Project W to launch SPARK, a program providing extra support and resources to help early-stage female entrepreneurs to help launch and grow their companies.

Read our American Express Business Line of Credit review.

How to qualify

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In order to qualify, you’ll need to meet American Express Business Line of Credit‘s criteria of:

  • Min. credit score: 660
  • Min. time in business: 12 months
  • Min. annual revenue: $36,000

Funding Circle: Best long-term loan for women

$25,000 to $500,000

7.49%

6 to 84 months

Pros
  • Fast funding
  • No hard credit check for most applicants
  • Low minimum revenue requirement compared to some business lenders
Cons
  • Only offers three business products
  • Not ideal for early-stage startups
  • Must provide collateral and a personal guarantee

Why we picked it

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For businesses needing more time to manage loan payments, a long-term business loan from Funding Circle could be just the solution. If you meet its criteria, you can receive up to $500,000 in as little as two business days, with terms up to seven years. Plus, there are no prepayment penalties if you pay off your debt ahead of schedule.

While gender doesn’t change anything during Funding Circle’s online application process, you can access free online resources to help your business grow. In addition, Funding Circle offers personalized attention to all of its clients — regardless of gender, ethnicity or background.

How to qualify

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In order to qualify, you’ll need to meet Funding Circle‘s criteria of:

  • Min. credit score: 660
  • Min. time in business: 24 months
  • Min. annual revenue: $50,000

National Funding: Best equipment financing for women

$3,000 to $150,000

Not disclosed

24 to 60 months

Pros
  • Next-day funding available
  • Lowest Payment Guarantee program for equipment leasing
  • No down payment or collateral required
  • Early payoff discount
Cons
  • High annual revenue needed to qualify
  • Charges an origination fee
  • Only two products available, despite misleading website marketing

Why we picked it

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Businesses needing to purchase or upgrade equipment can borrow up to $150,000 with National Funding’s equipment financing and leasing program. No down payment or collateral is required, although an origination fee of 1.00% to 2.00% will apply. If approved, funds could hit your bank account in as soon as 24 hours. And while some lenders charge prepayment penalties, you can get a discount when you repay your debt early.

National Funding also offers a Guaranteed Lowest Payment for its equipment leasing — which applies if you find a better leasing rate with the exact terms and conditions and without contingencies. In addition, National Funding offers customized business term loans up to $500,000 with a special focus on female entrepreneurs, helping meet your business’s unique needs.

Read our National Funding review.

How to qualify

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In order to qualify, you’ll need to meet National Funding‘s criteria of:

  • Min. credit score: 600
  • Min. time in business: 6 months
  • Min. annual revenue: $250,000

Fundbox: Best fast loan for women

Up to $150,000

12 or 24 weeks

4.66% for 12 weeks
8.99% for 24 weeks

Pros
  • Next-day funding available
  • Unlock more discounts with Fundbox Plus
  • Available in all U.S. states and many territories
Cons
  • Only offers a business line of credit
  • Weekly repayments with short terms
  • Doesn’t fund all industries

Why we picked it

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If your business needs to tackle emergency expenses, Fundbox offers quick business financing with a speedy application process and funds available as soon as the next business day. As a business line of credit, you can borrow up to $150,000 on an as-needed basis — only paying interest on the amounts you withdraw.

Fundbox also offers free resources to help women and minority entrepreneurs succeed, such as providing a list of small business grants and useful business tips via its blog and podcast. Note that Fundbox doesn’t fund certain industries, including online gaming and gambling, money service businesses and nonprofit organizations.

Read our Fundbox review.

How to qualify

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In order to qualify, you’ll need to meet Fundbox‘s criteria of:

  • Min. credit score: 600
  • Min. time in business: 6 months
  • Min. annual revenue: $100,000

Accion Opportunity Fund: Best startup loan for women

$5,000 to $250,000

8.49%

12 to 60 months

Pros
  • Works mostly with women, people of color and low-income entrepreneurs
  • Offers business coaching and mentorship
  • Flexible repayment terms
Cons
  • Not available in all states
  • Only offers two types of loans
  • Doesn’t list minimum credit score requirements

Why we picked it

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The Accion Opportunity Fund (AOF) is a nonprofit lender focused on making small business financing available to new and well-established business owners from all types of backgrounds and identities. If your business has operated for at least 12 months, you can borrow up to $250,000 to cover ongoing startup expenses, with terms lasting up to five years.

AOF states its mission is to challenge racial and gender inequities in the financial world, with 90% of its clients identifying as diverse business owners. You can access a range of educational classes, resources and coaching to take your business to the next level. AOF also provides customer support in English and Spanish, making it an excellent resource for minority entrepreneurs.

Read more about the Accion Opportunity Fund (AOF).

How to qualify

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In order to qualify, you’ll need to meet Accion Opportunity Fund‘s criteria of:

  • Min. credit score: Not disclosed
  • Min. time in business: 12 months
  • Min. annual revenue: $50,000

Credibly: Best bad credit loan for women

$5,000 to $600,000

1.11 factor rate

3 to 24 months

Pros
  • Low minimum credit score requirement
  • Ideal for a wide range of short-term business needs
  • Short time-in-business requirement
Cons
  • High annual revenue requirement
  • Charges an origination fee
  • Most products provided by third-party partners

Why we picked it

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While Credibly considers your credit score, it also looks at factors such as your company’s overall financial health and potential for growth when determining eligibility. Because of this, and its low credit score requirement of 500, it’s one of our top picks for a bad credit business loan. You can borrow up to $600,000 to cover inventory, rent, supplies, payroll, marketing campaigns and more.

With extra support and resources specifically designed for women-owned businesses, you can enjoy Credibly’s quick application process, flexible terms and lenient eligibility requirements. Note that besides its working capital loans and merchant cash advances, all other financing options are provided by third-party lenders.

Read our Credibly review.

How to qualify

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In order to qualify, you’ll need to meet Credibly‘s criteria of:

  • Min. credit score: 500
  • Min. time in business: 6 months
  • Min. annual revenue: $180,000

What is a business loan for women?

A business loan for women is any type of small business financing that offers additional resources, support or coaching to help women entrepreneurs succeed.

It’s important to note that lenders can’t approve or deny a loan application based on gender, race, color or religion, thanks to the Equal Opportunity Credit Act.

That said, many lenders are committed to ensuring that women-owned businesses have access to the same resources and funding opportunities as their male counterparts.

Types of small business loans for women

You can explore various types of business financing to help fund your business’s growth. Online business lenders tend to have more lenient requirements and faster funding times than traditional banks, although they often charge higher rates and fees.

Here are some common financing options for women business owners to consider:

SBA loans

Though not specifically reserved for women, SBA loans come with favorable interest rates and repayment terms since they’re backed by the U.S. Small Business Administration (SBA). These loans are generally best suited for business owners who can’t secure traditional financing.

Here are the three most popular SBA loans:

  • SBA 7(a) loans: Up to $5,000,000 for general business expenses. Terms between 10 and 25 years with variable rates capped at 11.5% to 15%, and fixed rates capped at 13.5% to 16.5%. Rates are based on the current prime rate (currently 8.5%), although your lender may offer a lower rate.
  • SBA CDC/504 loans: Up to $5 million for real estate or equipment purchases. Repayment terms span 10 to 25 years, and interest rates are based on current market rates — approximately 3%.
  • SBA Microloans: Up to $50,000 for women, minority, low-income and veteran business owners. Rates tend to average between 8.00% and 13.00% and terms may be up to six years.

While the SBA oversees the loan program, you must apply directly with an SBA-approved lender. It can often take between 30 to 90 days to receive an SBA loan since the lender and the SBA typically need to review your application.

However, finding an SBA-preferred lender can help reduce the approval and funding timeline to about two weeks.

Term loans

Term loans provide a lump sum of cash with a scheduled repayment and accruing interest. Short-term business loans typically need to be repaid in three to 24 months, while long-term business loans can give you up to 25 years to repay the debt.

Short-term business loans are generally for smaller amounts of money, but often have high interest rates and fees. Women who have an immediate financial need might be better off with a short-term loan. However, if you need to make a large investment, like purchasing a point-of-sale system or a piece of commercial equipment, a long-term loan could be a better fit.

Business lines of credit

A business line of credit allows business owners to access up to a set credit limit as often as needed. You typically only pay interest on the withdrawn amounts, although some lenders charge additional draw or maintenance fees. Once you’ve repaid the debt, you can withdraw up to your credit limit again.

A line of credit may be a better option over a business loan if you anticipate needing sporadic funds, such as covering seasonal dips in income or to purchase occasional supplies and inventory.

Working capital loans

A working capital loan is a short-term loan designed to finance a business’s day-to-day operations, such as hiring staff, payroll, rent, utilities, supplies and more. The repayment timeline will depend on your loan type and lender, with some lenders requiring daily or weekly payments.

Equipment loans

Equipment financing helps businesses purchase expensive equipment like vehicles and machinery, with the equipment often acting as collateral to secure the debt. Equipment loans can make great small business loans for women-owned startups without a lengthy operating history, good credit or valuable assets.

You can also consider equipment leasing if you need to replace equipment often. Some leasing programs give you the option of purchasing the equipment at the end of the term.

How to get a business loan for women

Once you’ve decided to move forward with business financing, you’ll want to ensure the process goes as smoothly as possible. Here are some key steps to take when applying for a business loan.

1. Decide how much money you need

Start by figuring out what you need the money for and creating a plan for how to use it. Then, calculate how much you’ll need to enact those plans.

Next, update your business budget to make sure you can afford the payments on the amount you need. If you have any doubts about your ability to pay back the loan, try paring down your plans for how to use the money, and plan out what you’d be able to do with a smaller loan.

Keep tweaking your plans until you find an amount that can help you grow your business without stretching your budget too thin. Consider starting small with something like a microloan to avoid getting over your head with loan payments.

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2. Check your personal and business credit scores

Lenders typically review your personal and business credit score to determine your ability at handling debt. If you have yet to build your business credit, lenders will likely rely on your personal credit score when calculating your level of creditworthiness. You can monitor your credit score for free with LendingTree’s Spring to see where you stand.

3. Research and compare lenders

Shopping around is essential in finding the best loan for your women-owned business. You can start by reading small business lender reviews and making a list of potential lenders that fit your company’s criteria and unique needs. From there, scour each lender’s website to get a better sense of their rates and terms.

Tip: Check with your current bank first

Before reaching out to online lenders across the globe, it’s worth contacting your local bank to see if they offer small business financing. Having an established relationship with a traditional bank can often strengthen your business loan application. Plus, keeping all your business accounts at one bank can make it easier to manage your accounting.

Here are some leading banks for small businesses:

  • Chase
  • Wells Fargo
  • U.S. Bank
  • Capital One
  • Bank of America
  • American Express

Just keep in mind that traditional lenders typically require businesses to operate for at least two years before extending credit. However, some banks work with early-stage startups, such as Bank of America and Wells Fargo.

4. Gather required documents

While business loan requirements vary by lender and loan type, here are some standard documents you may need to provide when getting a business loan:

5. Apply and review

Most lenders allow you to apply online with a quick and streamlined process, although some banks and credit unions might require a phone call or in-person visit. If you want to see how your top lenders compare, you can “rate shop” by applying to multiple lenders within a 14- to 45-day window without any further impact to your credit score.

Fully review your business loan agreement to ensure you understand all the terms, rates and fees before signing the dotted line.

How to compare business loans for women

Not all loans are created equal. It’s worth comparing the following key features when picking the best business loan for your women-owned company.

  Interest rate: Business loan interest rates vary by lender, loan type and your credit profile. Some lenders list their rates as variable or fixed, while some charge a factor rate instead of an APR or interest rate. If possible, try to convert your factor rate before proceeding to see how much the loan will cost you.

  Additional fees: Keep an eye out for extra charges like origination fees, late charges or prepayment penalties, all of which can increase a loan’s total cost. Fortunately, many leading lenders don’t charge hidden fees.

  Repayment term: Loan repayment terms can range from a few months to 25 years, with either daily, weekly or monthly payments. Make sure your business budget can handle the repayment schedule.

  Time to fund: While a same-day business loan can help during financial emergencies, fast loans tend to come with higher rates and less flexible terms. If you can afford to wait, you’ll generally receive more competitive rates and terms with a traditional lender or credit union business loan. That said, traditional lenders can take up to two weeks or longer to approve and fund your loan, while SBA loans can take up to 90 days.

  Collateral required: Some lenders offer secured business loans where you need to provide collateral to reduce lender risk. Collateral can be anything of value the lender can seize if you fail to repay the debt, such as real estate, inventory, equipment, money owed to your business or other assets.

  Loan purpose: Depending on the loan type and lender, there may be restrictions on how you can spend your loan funds. For instance, you can’t use an SBA microloan to pay off existing debt or purchase commercial real estate. If you want the most flexible form of financing, a working capital line of credit could be just right for you.

Challenges women entrepreneurs face in business financing

Even though over 39% of businesses in the U.S. are owned by women, and the Equal Credit Opportunity Act makes it illegal for lenders to discriminate against borrowers based on sex, many women still experience challenges and obstacles when trying to fund and grow their companies.

A study conducted by the Federal Reserve shows that more women-owned companies operate at a loss than their male counterparts (44% versus 34% of men-owned businesses). And when it comes to funding, men are more likely to get business loans fully approved — 55% versus 45% for women.

There is some investor bias at play here, too. For example, only 2% of total investments went to women-owned businesses in 2022. Unfortunately, venture capitalists (VC) may harbor unwarranted concerns about a woman’s ability to successfully run a business while maintaining the more traditional role of mother and wife. In fact, a Harvard study showed that investors prioritized pitches made by male entrepreneurs, even if the overall business idea was identical.

Based on these statistics, it’s clear more needs to be done to close the gender gap to ensure female leaders receive their fair share of resources. Working with a lender who focuses on supporting women-owned businesses can help female leaders claim what they deserve in the world of business.

Women’s small business grants

Provided by government agencies, corporations and nonprofit organizations, small business grants can help businesses grow to new levels. Unlike a loan, you normally don’t have to repay grant funds.

Securing a grant can be highly competitive and usually involves an application process. Typically, you would explain why your company needs the money, how you plan to use it and why your business is the best candidate for the grant.

Here are few popular small business grants for women:

  • Amber Grant: Awards three $10,000 awards to female entrepreneurs every month to the Amber Grant, Startup Grant and Business Category Grant. All recipients are entered to win one of the three $25,000 Annual Amber Grants.
  • The Cartier Women’s Initiative (CWI): Awards three grants to women-owned businesses in nine regions every year. First place gets $100,000, second place gets $60,000 and third place gets $30,000. Awardees are also eligible for a CWI loan up to $200,000 with competitive interest rates.
  • HerRise Microgrant: Awards $1,000 grants each month to women of color who generate less than $1 million in gross revenue.

You can explore a more extensive list of women-owned business grants on Grants.gov, or research SBA grants for women.

Alternatives to business loans for women

Taking out small business loans can be a valuable way for women entrepreneurs to finance their ventures. However, they aren’t the only way for women to secure funding.

Accounts receivable factoring

Accounts receivable factoring, or invoice factoring, involves a business selling its unpaid invoices at a discount for immediate cash. The factoring company then collects on the invoices, charging a fee before sending you the remaining amount. While this funding option has potentially high fees, it could be an ideal option for women with bad credit, especially since factoring companies don’t typically require high credit scores.

Merchant cash advances

A merchant cash advance (MCA) is a lump-sum payment to a business from a lender. The business pays the money back over time from the money it makes on debit and credit card transactions. The lender takes a small percentage of those transactions each day until the borrower pays off the loan. Businesses that use merchant cash advances incur fees for the convenience of getting money upfront on future earnings.

Business credit cards

Business credit cards can help cover low-cost everyday expenses, such as travel and meals. Similar to a line of credit, you can use it when you need it, only paying interest on what you use. However, interest rates tend to run high. Unless you can pay off the balance each month, you’re probably better off with a traditional loan or line of credit.

Crowdfunding

Crowdfunding allows you to collect donations from your friends, family and the general public via an online platform, such as GoFundMe or Kickstarter. In most cases, businesses don’t need to repay the money your business crowdfunding campaign raises. However, businesses typically offer investors some kind of perk, like a first-run product or a T-shirt with the company logo. Fees tend to be reasonable: For example, GoFundMe charges 2.9% plus $0.30 per donation.

Peer-to-peer loans

Peer-to-peer lending is a practice that matches individual lenders with would-be borrowers. Instead of borrowing from a financial institution, you borrow from a person or a group of people who see your loan as an investment that provides a return. In some cases, peer-to-peer loans can help you get funding that you may not be able to get through traditional types of loans. Typically, though, peer-to-peer loans have higher interest rates and come in smaller amounts.

Commercial loans

Commercial real estate loans are similar to residential mortgages, but they’re connected to a commercial property. Unlike residential mortgages that usually have 30-year terms, the terms of commercial mortgages are more flexible. Instead of just considering the value of the property in a commercial mortgage, lenders also weigh its potential for income, too.

How we chose the best business loans for women

We reviewed more than 20 small business lenders to determine the overall best eight business loans for women. To make our list, lenders must meet the following criteria:

  • Minimum time in business: Options for businesses that have been operating for six to 24 months.
  • Minimum credit score: Credit score requirements of 660 or less.
  • Funding amounts: Loan and line of credit amounts from $2,000 to $600,000.
  • Rates and terms: We prioritize transparent lenders that disclose their general rate ranges with no hidden fees, as well as those who offer early-payoff discounts.
  • Repayment experience: We favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.
  • Additional resources for women: All the lenders featured in our list must offer additional support, resources or initiatives for women-owned businesses, such as providing free educational classes or discussing the gender inequality gap in business on its blog or podcasts.

Frequently asked questions

If you are a startup with no money, you’ll likely have to implement several methods to get your business idea off the ground. You could approach family and friends to ask for donations, or launch a crowdfunding campaign to collect money from a wider audience. Additionally, there are some grants for women to start a business.

Depending on how lucrative your business model seems, you might have luck getting equity financing via a venture capitalist firm. And if you’re still juggling a full-time job, you can set aside some of your earnings to bootstrap your startup with your own funds.

You can also explore startup business loans for women, although most lenders prefer startups to have at least six months under their belt.

Despite there being approximately 14 million women-owned businesses in the U.S. today, female entrepreneurs continue to face gender inequality when it comes to small business financing.

Lenders can’t legally discriminate against female business owners, but studies have shown that women typically receive less funding than their male colleagues. For example, the average loan amount for women-owned businesses in 2020 was $36,981, compared to the average loan amount of $55,061 for men-owned businesses.

That said, many lenders are focusing on supporting female business leaders by providing additional resources and business coaching classes. By connecting with a women-centered lender, your women-owned business can get a head start with financing.

If you work on government contracts, it could be worth taking the steps to get certified as a women-owned business. Doing so could make you eligible for government “set asides,” which are contracts the government reserves for small businesses like women-owned companies.

You can get your women-owned small business (WOSB) certification for free by applying directly through the U.S. Small Business Administration (SBA). You must have an active registration in the System for Award Management, as well as all required documents on hand.

You can also obtain your WOSB certification through the following third-party organizations. Each organization has specific requirements and fees.