How to Get Approved for Small Business Loans for Women

Small Business Loan Request Letter How to Get Approved for Small Business Loans for Women

How to Get Approved for Small Business Loans for Women

Women in the United States own forty percent of businesses and are a driving force of the nation’s economy. If you would like to join them, you might be interested in small business loans for women. Don’t know how they work or what the best small business loans are? Read our article to get the information you need and kick-start your business!

What Are Small Business Loans?

Getting a small business loan will give you capital that you can use to invest in your startup or cover your business expenses. The benefits of small business loans are many as they:

  • Ensure your business keeps growing—Having capital allows you to expand your company, invest in marketing, hire additional staff, and more
  • Diminish seasonal cash flow gaps—A small business loan makes your off-season easier to handle and ensures you have a stable cash flow during the slow period
  • Allow you to take advantage of various opportunities—A loan enables you to purchase discounted inventory or cover other unexpected expenses that might help your business

What Types of Small Business Loans are Available for Women?

There are various types of small business loans women can apply for, including:

  1. Women-specific loan programs
  2. Small Business Administration (SBA) loans
  3. Bank and credit union small business loans
  4. Business loans from online lenders
  5. Microloans

Women-Specific Loan Programs

There are several small business loan programs dedicated to female entrepreneurs. For more details, consult the table below:

Loan ProgramDetails
KabbageThrough Kabbage, you can borrow up to $250,000 if you have been in business for at least one year. On top of that, your business must have been making at least $4,200 per month over the last three months
The Tory Burch Foundation Capital ProgramFounded by the American fashion designer Tory Burch, this program allows female entrepreneurs to borrow up to $100,000. To be eligible for this loan, you must have a:

  • Business that can be maintained
  • Solid credit score rating
  • Business that has been running for at least two years
Accio Women-Owned Business LoansYou can borrow up to $50,000 through this program, but you must:

  • Not be more than 30 days late on any payment
  • Not have declared bankruptcy in the last year
  • Have a credit score of at least 575
Grameen America Microloans for Women EntrepreneursGrameen offers microloans of up to $1,500 for individuals living below the poverty line. The company also provides:

  • Training
  • Networking
  • Further education
  • Opportunity for larger loans

Small Business Administration Loans for Women

The SBA offers the Standard 7(a) program and SBA Export Express loan. Through the Standard 7(a) program, women can borrow up to $5 million and usually have to repay it in five to ten years. Women also have lower interest rates than men.

To qualify for the loan, your business must:

  • Be based in the U.S.
  • Operate for-profit
  • Earn less than $7.5 million annually in average revenues

You can use this loan to:

  • Cover day to day working capital needs (e.g., managing payroll or hiring new employees)
  • Refinance business debt (credit cards, loans, etc.)
  • Purchase business equipment
  • Buy real estate and land for your business
  • Open a new business location

If you don’t need a sizable amount of capital for your business or startup, you should opt for the SBA Export Express loan. It allows you to borrow up to $350,000 and requires you to have an established business that has been operating for two years and has substantial revenues. Keep in mind that due to the faster approval process of the SBA Export Express loan, the interest rate is slightly higher

Bank and Credit Union Small Business Loans

The amount you can borrow depends on the bank and the credit union’s guidelines. The biggest benefit of borrowing from banks is that they offer lower fixed interest rates. Note that to get the lower rates, you need to have outstanding credit or an established personal or business banking relationship.

A downside of getting a loan from banks is that you need to fill out an unnecessary amount of paperwork, and you have to wait for quite a while to get a loan.

Business Loans From Online Lenders

If you need to have money in your hands faster, online business loans might be the thing for you as the loan can be approved within 48 hours. You also do not need to have a perfect credit score, and the interest rates are only slightly higher compared to those offered by banks.

Depending on the type of loan, borrowing limits can be generous, and the terms are flexible as you can repay an online lender either in a few months or several years.

Small Business Microloans for Women

If you are a female business owner who is just getting started, microloans could be a solution. They do not require big capital, and you can usually borrow up to $50,000. You can take up to six years to repay a microloan.

The downside is that they have limited uses, and you cannot purchase real estate or refinance other business loans.

Getting a Small Business Loan for Women

To get a small business loan, you will need to follow these steps:

Determine whether you qualify for a loanYou need to consider the following:

  • Your credit score
  • Your budget
  • How long you have been in the business
  • Whether you make enough annual revenue
  • Whether you can afford the payments
Decide on the type of loanConsider what you are planning to spend your money on and decide what type of loan you need to fund your business
Gather your documentsYou must gather all the required documentation, such as:

  1. Business and personal tax returns
  2. Bank statements
  3. Financial statements
  4. Business plan
Prepare a business loan request letterYou need to write a request letter that is convincing. Writing one on your own can be challenging, and hiring a lawyer can be an expensive option. That is why you should subscribe to DoNotPay! Our app will draw up this crucial document for you in no time and make sure it is error-free

How To Get a Small Business Loan for a Woman With DoNotPay’s Help

If you want a flawless business loan request letter that will ensure you don’t get rejected by the lender, use DoNotPay! Our AI-powered app will generate this document for you instantly, and all you have to do is:

  1. Gather your credit scores
  2. Prepare other important documents
  3. Give us the crucial details, such as:
    1. The amount you want to borrow
    2. Information about your company
    3. The purpose of your loan
  4. Upload the gathered documents

If you have not found a suitable lender for your business needs, use our Find an Online Business Loan Lender tool! With it, you will get a list of the best lenders for your specific business needs.

Run Your Business Worry-Free!

Every beginning is challenging, which is why DoNotPay has everything you need to start running your business stress-free! We have created numerous easy-to-use products that will make boring administrative tasks easier to manage.

To help you get started, DoNotPay will assist you in taking care of trademark, Employer Identification Number (EIN), and DMCA agent registration, Privacy Shield self-certification, and business loan requests.

We can even help you maintain a good business reputation by:

  • Monitoring your trademark and filing a cease and desist letter in case someone tries to use it
  • Reporting fake negative reviews that could harm your business
  • Disputing illegitimate chargeback requests in a matter of minutes

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Why waste time worrying about how to draw up and file various legal documents when you can have the world’s first robot lawyer do that in your stead? You do not have to waste thousands of dollars on lawyer’s fees—our extensive database has a myriad of documents on offer.

DoNotPay will help you automate the procedure of completing and filing 83(b) election forms, write a formal demand letter requesting payment from clients who try to avoid it, and deal with other important paperwork.

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