The Advantages Of Small Business Loans For Women

According to the US Small Business Administration, women make up 47% of the workforce and own almost 30% of non-farm small businesses. Women employ 6.5% of the nation’s workforce. Women-owned businesses grow at a much faster rate than other sectors and will continue to do so for the foreseeable future.

To continue this trend, however, women need a helping hand to make their dreams a reality, which explains the sharp increase in small business loans for women. Because more women business owners have families and children, attentions get divided and it can be difficult to stay afloat without loans for women that own small businesses.

If the idea of securing a loan for women overwhelms you, don’t let it. There are many great organizations designed for the express purpose of getting capital into the hands of women business owners. And the best part about most programs granting small business loans is that repayment is at a much lower interest rate than those charged by banks for traditional business or personal loans.

Individuals seeking these loans for women are in for a pleasant surprise as they find both a wealth of resources and lenders eager to help them make their businesses successful. Because women-owned businesses fall under the government designation of historically under-utilized businesses (HUB), it behooves financial institutions to facilitate loans for women.

If you are looking for a small business loan, consider one of the following sources for information and loan applications:

1. Small Business Administration (SBA) – The SBA has an Office of Women’s Business Ownership. In addition to providing low-interest loans for women, the Office of Women’s Business Ownership offers guidance, counsel, and encouragement.
2. Women’s Funding Network – This nonprofit organization is comprised of 150 benefactors who make small business loans across the globe, mostly women. If your organization has a philanthropic bent, this is a great place to start.
3. Count Me In, OneSeed etc. – Approving loans for women that own very small businesses, or micro-loans, is a growing trend in the online lending world. Organizations such as Count Me In and OneSeed take a “for women by women” approach to funding small businesses by offering loans of less than $5000.

Loans for women are accessible, affordable, and easier to obtain than most people realize. If you are a woman business owner, do not hesitate to do some research into what resources are available in the way of small business loans.

As noted above, you need not risk your future by securing a huge loan for your women-owned small business. If you need a small boost during a tough patch, a micro-loan could be a great option for you. Never borrow more than you need or more than you can afford to pay back.

To that end, exercise extreme caution when using credit cards or similar lines of credit in lieu of a small business loan. They may assist you in the short term but you will pay exponentially more in fees and interest over the long term.

Even the most successful businesses need a financial boost from time to time and there is no shame in weighing the pros and cons of small business loan for women. Also, if your company is ready to expand and grow into new markets, sometimes the only way to facilitate that expansion is with a woman owned-small business loan. This is especially true if you are in an industry where change happens very rapidly. Waiting for capital to build through the revenues you generate could mean missed opportunities.