Small Business Loans for Women

By: EconomyWatch Content   Date: 9 December 2009

About The Author

EconomyWatch Content

Follow The Money

EconomyWatch, Content Team

 

  • Dot Div
  •      

Several organizations offer small business loans for women in a bid to promote business development amongst them. Increased availability of loans helps minority groups such as women to make a mark in the area of business. The past decade has seen a sharp increase in the number of women-run businesses and this has attracted the attention of the various lending agencies.

 

Sources of Small Business Loans for Women

Raising start up capital is important for starting a new business. Although the most common source of funding for women run businesses comprises friends, family, grants and private investors, the popularity of loans has also sparked interest in recent years. Several agencies offer special small business loans for women based on individual credit record, experience and the assets owned. Some lending agencies also offer loans for women with young children so as to allow them to start their home run businesses.

 

Small business loans for women are available for varied kinds of businesses such as:

  • Catering
  • Pet supplies
  • Photography
  • Record labels
  • Brokerage
  • Day care
  • Real estate
  • Consulting.

 

These loans can be used to start up a business, or meet its daily cash requirements.

The most preferred source of small business loans for women comprise varied government run programs. Although angel investors and venture capitalists are a good source of funding, they have a clear say in the functioning of the business.

 

Role of SBA in Small Business Loans for Women

 

The Small Business Administration (SBA) is the biggest and the single largest financial backer of small businesses. The federal agency does not lend itself but guarantees up to 75% of the loans provided by the private lenders to the women run businesses.

 

The SBA is of great help to small women run businesses that may not have collateral to get secured loans. The SBA offers a pre qualification program for women entrepreneurs. This program trains the women entrepreneurs in preparing their loan applications in a smart way and to finally secure loans. The federal agency reviews the business plans of these proposed units. It also acts as a link with the lending agency. Once the SBA agrees to guarantee a loan, an intermediary agency such as the SBDC helps the borrower to locate a lender that offers the small business loans for women at competitive rates.

 


  • Dot Div
  •      

Most Popular in Business Loans

Related Links
blog comments powered by Disqus