Small Business Loans for Women

6.50% - 8.75%*
$30,000 - $5 million
10 - 25 years

Small Business Loans for Women: What You Need to Know

There’s no denying that obtaining low-cost financing is a successful way to boost small business growth. In fact, research has shown that receiving a loan increases the chances of job creation within small business by 302 percent1. And yet, while women-owned firms make up an integral part of the US economy, at 36% of privately held businesses2, they face several challenges to securing capital and achieving their full potential.

At SmartBiz Loans, we strive to provide easy access to low-cost funding and help all small business owners, including women entrepreneurs, achieve their dreams. We’re proud that more than 30% of the 7(a) SBA loans we’ve facilitated were granted to women-owned businesses, a number significantly higher than the national average of 14% for SBA lenders.

Facts about US Women Owned Business

Over the last several years, women owned firms have been growing faster than their counterparts. The statistics are impressive3 :

  • More than 9.5 million businesses are owned by women, employing nearly 7.9 million people, and generating $1.5 trillion in sales.
  • Women-owned firms account for 36% of all privately held firms and contribute 14% of employment and 12% of revenues.
  • 2.9 million firms are majority-owned by women of color.
  • These firms employ 1.4 million people and generate $226 billion in revenues annually.
  • 1 in 5 firms with a revenue of $1 million or more is woman-owned.

The highest number of women-owned businesses is found in California, at 1.3 million firms, followed by Texas at 867K, Florida at 808K, New York at 726K, and Illinois at 418K4.

With such a significant impact on the US economy, women-owned businesses should consider expanding by opting for a business loan. Instead, women entrepreneurs account for only 16% of conventional small business loans and 14% of 7 (a) SBA loans, and they are only half as likely as men to obtain business loans from banks.

Top challenges faced by women business owners seeking funding

Some of the most significant factors that prevent women-owned businesses from obtaining secure financing are not only lower approval rates, but a feeling of discouragement from the expectation that they will be turned down. Several studies have shown that these unfortunate disparities are still prevalent. On average, women-owned firms have had loan approval rates that are 15 to 20 percent lower than those of their male counterparts. Data has also shown that over time, women-owned businesses are less likely to have business credit.

And even when they do have a strong chance of approval, some women have reported not applying for a loan because of the anticipation of rejection. These overall findings can be discouraging; however, at SmartBiz we’re proud to help increase access to capital for women entrepreneurs, so that they can continue accomplish their business goals.

SmartBiz SBA Loans for Women

At SmartBiz Loans we believe every small business should have access to low-cost capital like SBA loans. One of the ways we achieve our mission is through our new online educational tool, SmartBiz Advisor™*. Advisor is designed to help educate business owners about what it takes to become SBA Loan Ready, assessing the likelihood of funding even before an application is submitted and providing an actionable plan to help the business get there. SmartBiz Advisor™ is a revolutionary innovation, aimed at helping make the lending process easier and more transparent for entrepreneurs seeking low-cost funding. With this educational tool, women business owners can have a clear view of where they stand in terms of becoming SBA Loan Ready.

We’re excited to share some of the most inspiring business stories from recent customers who are scaling their businesses against the odds.

Done & Done Home is a professional decluttering business, run by mother/daughter team Katharine Pawlowski and Ann Lightfoot. Since launching in 2012, the business has expanded into more urban areas thanks to a working capital SBA loan facilitated by SmartBiz.

Co-owner of Sugar Twist Bakery, Ariya Burana, secured an SBA loan with help from SmartBiz to grow her business. In addition to managing the business, she also works full-time as a software developer.

Laura Tabsharani is the founder of Epic Global Talent, an entertainment and marketing company. She worked with SmartBiz Loans to help obtain funding for a website revamp and publicity.

Check out more of the hard-working business owners that we support on our SmartBiz Small Business Blog

Funding Options and Resources for Women-Owned Businesses

SmartBiz SBA loans are for financially healthy borrowers. Most businesses can qualify for these loans if they’ve operated for at least two years with good credit, have no recent bankruptcies or foreclosures, and have cash flow that is sufficient to make the monthly payments throughout the life of the loan. The actual approval requirements will depend on the on the individual lender and factors such as your business revenue, cash flow and credit scores.

In addition to loans, there are other secure sources of capital that business owners can consider. For example, grants for women entrepreneurs vary from federal to state and local to private sources. At the federal level, they are usually specific to a certain purpose rather than applicable to the daily operations of a business. Before applying, make sure to do ample research on the allocation of funds that the grant is designed for.

The Small Business Administration advocates for women entrepreneurs through their Office of Women’s Business Ownership. Learn more about the resources it provides for underserved communities on their website. The SBA also sponsors over 100 educational centers across the country, where women entrepreneurs can receive training and counseling. Check out all the active Women’s Business Centers here.

Visit our blog to learn more useful tips when it comes to running a small business, from financing to employee management to marketing, and see if you pre-qualify for an SBA loan on our website.

1 Josh Silver, Small Business Loan Data: Recommendations to the Consumer Financial Protection Bureau for Implementing Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
2 National Women’s Business Council, Women-Owned Businesses Fact Sheet
3 National Association of Women Business Owners, Women Business Owner Statistics
4 NWBC, Women-Owned Businesses Fact Sheet

What you need to know: The information provided through SmartBiz Advisor, including the Loan Ready Score, is for educational purposes only. SmartBiz Advisor is not a financial or legal advisor as defined under federal or state law. Use of this information is not a replacement for personal, professional advice or assistance regarding your finances or credit history.
Back to Top