Small Business Loans for Women

Small business loans offer a myriad of benefits to business owners. First and foremost, they provide companies with capital when they need it, either for expansion or to manage their cash flows. A loan can also help businesses build credit. Hence, small business loans help companies survive, thrive, and succeed.

According to the National Association of Women Business Owners (NAWBO), more than 11.6 million firms are owned by women in the United States. This growth reflects the increasing strength of women entrepreneurs across the country, yet many still face funding barriers when working with traditional bank lenders, financial institutions, and the U.S. Small Business Administration.

Since only 2.3% of all venture capital dollars went to female-owned companies in 2025, many women entrepreneurs turn to small business loans for funding. If this interests you, keep reading because we discuss the best small business loan options for women.

The Best Small Business Loan Options for Women

The best time to apply for women-owned business financing is when your business is in good shape. Now that you know what you need to apply for a loan, read on to learn about the different types of business loans you can apply for below.

SBA Loans

The Small Business Administration (SBA) is a federal agency that provides business financing through grants and loan programs. It also supports business development by offering business training and mentoring entrepreneurs. Check out their small business grants for women and see if you qualify.

Although the SBA doesn't have loan options specifically for women business owners, SBA loans are probably the best type of loan any business owner can qualify for. Borrowers typically get low-interest rates and longer repayment terms. Not to mention, you can use the funding for nearly any business purpose. Plus, the SBA is adding more Women's Business Centers to further support women entrepreneurs.

Even though the agency draws up the financing options, it doesn't fund the loans. Instead, borrowers work with SBA-approved lenders. And then, SBA guarantees a portion of the loan if the borrower defaults.

SBA Microloans

The most popular SBA loans are the microloan program and the SBA 7(a) loan program. Microloans lend small amounts of money — up to $50,000 — to startups, small businesses, and non-profit organizations.

SBA 7(a) Loans

The SBA 7(a) loan program offers capital for the purchase of real estate, operating expenses, and the establishment of new businesses.

SBA 504 Loan Program

The SBA 504 loan program is a powerful option for women-owned businesses planning major purchases such as real estate, heavy equipment, or long-term expansion. These small business loans offer fixed, low-interest rates and longer repayment terms.

Unlike other loan programs, 504 loans are structured through Certified Development Companies (CDCs) and can finance a portion of project costs, which helps women entrepreneurs secure affordable business financing without tying up working capital.

For all its benefits, the main drawback of applying for SBA loans is the strict requirements. You'd have to submit a lot of paperwork, which makes the application process longer compared to other loan options in the market. It may not be the best choice if you are looking to get funding quickly.

SBA Community Advantage SBLC Program

The SBA Community Advantage SBLC Program expands affordable small business loans to underserved founders, including women-owned businesses and female entrepreneurs.

These mission-driven lenders support startups and new businesses, considering more than just credit score when reviewing applications. Loan amounts can fund working capital, equipment, and other business needs, offering an accessible path to business financing backed by the U.S. Small Business Administration.

Business Loans From Online Lenders and Banks

A small business loan gives you access to capital for your business needs. You can use the funds to buy assets such as equipment and machinery to increase your income. Business owners also borrow to manage their cash flow and pay for day-to-day operating expenses like rent and payroll while waiting for invoices to clear. In addition, business loans help companies fund their expansion ideas, such as opening a new location or hiring more people to increase production.

Small business loans come in many forms, including short-term loans, lines of credit, business credit cards, and many more. These loans can also be secured or unsecured. Depending on the type of loan product you are applying for, the requirements and terms can vary. Each lender would have its own requirements, so be sure to verify what they need from you.

If you'd rather not spend your time sending loan applications to every lender, fill out our online form or speak to a Clarify advisor. We will work with you to find the loan option that best suits your business needs.

Working Capital Loans

Businesses apply for working capital loans when they need additional cash to cover their day-to-day operations. Operating expenses include:

• Rent

• Salaries

• Utilities

• Inventory

Working capital loans are commonly used to cover cash flow gaps to make sure the company's bills are paid on time. Cash flow gaps can sometimes happen when customers' payments are late, or an emergency arises, such as equipment breaking and needing repair.

Working capital loans also provide small business owners with funding to keep their businesses afloat during low sales seasons. This is why a working capital loan is ideal for women entrepreneurs who need access to quick financing to cover daily business expenses.

In addition, most working capital loans are unsecured, which is helpful for companies that may not have assets to secure a loan. These types of loans are also easy to apply for and qualify for. Most loans also come with flexible repayment terms. The different types of loans that are considered working capital loans include some SBA loans, short-term loans, invoice financing, equipment loans, and merchant cash advances.

Business Line of Credit

Business lines of credit are the most popular loans for small business owners and women entrepreneurs to access capital for day-to-day business needs. Here's how they work and why many entrepreneurs choose this financing option:

• Flexible access to capital. A line of credit gives you quick access to working capital, letting you cover cash flow gaps, handle unexpected expenses, or take advantage of new opportunities.

• Revolving credit structure. Borrowers receive a set credit limit they can draw from as needed, similar to a credit card. Interest applies only to the amount you withdraw, and your available balance refills as you repay.

• No fixed repayment schedule. Unlike many small business loans, a line of credit doesn't lock you into rigid payment timelines, helping you manage cash flow more easily.

• Useful for growing businesses. Many companies maintain a credit line open even when they don't need immediate funding, making it a reliable tool for both short-term expenses and long-term planning.

• Builds business credit. Responsible use and timely repayment help strengthen your business credit, improving eligibility for future loan programs and funding opportunities.

Equipment Financing

Equipment financing provides small business owners with the capital needed to purchase new or used equipment to operate their companies. It's a type of loan that's ideal for small or new businesses planning to buy business equipment and industrial machinery. Heavy equipment and specialized tools can be expensive, making it difficult for companies with limited capital to afford them up front.

Equipment financing offers a solution for business owners who need cash to buy the machinery necessary to run their daily operations. Companies can take out equipment loans to fund various purchases, including medical equipment, farm vehicles, or computer equipment.

You can apply for equipment loans through banks and online lenders. However, banks would have stricter requirements because they generally offer more favorable interest rates and terms. The amount you qualify for will depend on the purchase price of the equipment. But you might be able to finance up to 100% of the equipment's value if you work with an online lender. In addition, the loan term typically aligns with the expected lifespan of the equipment.

Invoice Factoring

Invoice factoring, also known as invoice financing, is a financing option that allows you to borrow money using your unpaid invoices as collateral. Factoring is technically a sale, not a loan, because the factoring company is giving you an advance on your accounts receivable in exchange for a fee.

So, a lender pays you an upfront amount of up to 100% of your total invoice value. When the invoices come due, the lender collects them from your customers. Then, they deduct the factoring fee, and any remaining amount is paid to you.

The application process for invoice factoring is quick and easy. Most businesses that get approved receive their money within 24 hours of completing the requirements. Hence, it's an excellent option for companies that need a fast cash infusion. Since the approval for invoice financing is based on the creditworthiness of the customers with outstanding invoices, there are no personal credit score requirements. That's why it's also ideal for business owners with bad credit.

Furthermore, invoice factoring provides a solution for entrepreneurs who are looking for unsecured loan options. Because the accounts receivable serve as collateral, no additional assets are needed to secure invoice financing.

Merchant Cash Advance

A merchant cash advance (MCA) is an agreement where a business receives cash upfront in exchange for a percentage of its future sales. Similar to invoice factoring, MCA isn't a loan but an advance. Approval is based on a company's creditworthiness, future sales, and past debit and credit card sales.

Here's how it works:

• Agreement on key terms. The borrower and the lender agree on the advance amount, total payback amount, and the holdback percentage, which determines your daily or weekly payment.

• Automatic payment structure. The holdback percentage is deducted from your sales, and payments continue until the balance is fully repaid.

• Accessible financing option. MCAs can offer funding opportunities for female entrepreneurs who may not qualify for traditional loan programs or who need quick working capital to cover urgent business needs.

• Ideal for revenue-based repayment. This option works well for businesses with strong credit card sales and steady cash flow, since repayment adjusts with revenue levels.

• Cash flow awareness. Before choosing an MCA, make sure your business can manage the daily or weekly deductions without disrupting operations.

How Hard Is It for a Woman To Get a Business Loan?

There's no denying that female business owners face many challenges when starting and growing their businesses compared to their male counterparts. However, women do have equal business loan opportunities as other genders.

Even though there is a disparity in the funding that men's and women-owned businesses receive, the introduction of alternative lenders and crowdfunding has made it easier for female business owners to obtain financing.

Check out the most important factors that lenders consider when reviewing loan applications below.

What Determines Your Ability To Take Out a Business Loan?

Each lender has its own eligibility requirements. However, most lenders will look into your credit score, ask for proof of time in business, and require proof of monthly revenue. Continue reading to learn how they apply these criteria to review your loan application.

Your Credit Score

Whether you're applying for a mortgage or a small business loan, lenders check your credit score to assess your creditworthiness. Although it may seem arbitrary that a three-digit figure represents your financial history, a higher score means the ability to borrow money at the lowest rates available. Hence, it's in your best interest to monitor your personal credit score, especially if you're planning to apply for loans.

To start, you can get a free credit report through AnnualCreditReport.com. Credit reports detail personally identifying information such as:

• Your name

• Address

• Social Security number

• Open and closed credit card accounts

• Loans

• Bills in collections

• Liens

• Bankruptcies

If you want to be proactive, you can also check your credit score through FICO. It ranges from 300 to 850. FICO is the biggest source of credit scores and is most commonly used by creditors.

Traditional banks and other financial institutions typically require a minimum credit score of fair to excellent to approve small business loans. But at Clarify Capital, we work with small business owners of all credit types. If you're a female entrepreneur with a credit score of at least 550, we offer funding options tailored for you.

Your Time in Business

Your time in business also impacts your ability to get approved for loans because lenders use how long your company has been operating to assess their risk in lending to you. The rationale is that lenders have a better chance of getting their money back from established businesses.

In particular, traditional lenders like banks and credit unions typically require a verifiable business history of at least two years. However, working with Clarify Capital gives you access to more than 75 alternative lenders. So, you can get business funding as long as you've been in operation for at least six months.

Your Monthly Revenue

In addition to credit scores and time in business, your eligibility for a loan also depends on the lender's minimum annual revenue requirements. To confirm your business income, you may be requested to provide bank statements, income tax returns, and profit and loss statements, along with other necessary documents.

Of course, creditors want to know that you have a consistent cash flow. It shows that you can afford to repay your loans. At Clarify, we recommend that your business generate a qualifying revenue of at least $10,000 a month.

Your Desired Loan Amount

Lastly, your desired loan amount will be considered when applying for a loan. Lenders typically use your revenue to calculate the maximum loan amount you can qualify for. They review your debt-to-income ratio to determine whether you can afford to take on additional debt. This practice protects both lenders and borrowers because the creditors can make sure they're getting paid, and you won't be burdened with more debt than you can handle.

How To Apply for a Business Loan as a Woman Entrepreneur

The speed of the application process is a top priority for women-owned businesses. We take pride in having the quickest funding process — all you have to do is fill out our online application. It only takes less than a couple of minutes.

Here is a complete overview of how our simple process works:

Step 1: Identify How Much You Need To Borrow

While we'd all love to get $50 billion, the best approach to figure out how much to borrow is to understand your business goals. Write down how much capital you need to pay for expenses to sustain and grow your company. This will help you borrow the right amount and lower your costs.

Step 2: Apply Online

Once you apply for a business loan with us, you'll wonder why can't everything in life be so simple. It's the core reason why over 10,000 women-owned businesses have chosen Clarify Capital as their lending partner.

Step 3: Get Your Documents Ready

Once you've applied online, our team will contact you to better understand your business. All you need is three months of bank statements to verify your cash flow. That's it. There is no lengthy paperwork to fill out — we've got you covered.

Step 4: Go Over Loan Offers With Your Clarify Advisor

We'll walk you through all your available options to help you make a better decision. There are no hidden fees or mumbo-jumbo to figure out. We keep it fully transparent.

Get Started – Funding for Women Entrepreneurs

There are many ways to raise capital to fund and grow your business. But fundraising, borrowing from family and friends, and taking on investors can sometimes take too much effort and time. And sometimes, these options require you to give up equity in your company.

However, you also recognize the importance of getting the capital you need to run and grow a profitable business. So, if you're looking for accessible loans for female business owners, Clarify Capital is here for you.

At Clarify Capital, we handle all the application paperwork to save you time and money. We also know navigating small business loans can be overwhelming. That's why you'll have a dedicated Clarify partner who will work with you to choose the best option based on your financing needs.

Apply now and receive your funding in as little as 24 hours.

FAQ About Business Loans for Women

We strive to make getting a loan simple and transparent. Here are the most frequent questions female-owned businesses ask our advisors before getting funded: