It’s a new era and the theme is women in business. The goal is to support women who have ideas to start up their own venture. In this case, the form of support is Financial and it requires the provision of loans and grants for female owned small business.
If you’re a woman and you own a small business, you might be wondering if there are small business loans and grants exclusively provided for women. You’re probably wondering so because your chances of qualifying for such kind of loans is easier. Well, the truth is there is hardly any grant or loan exclusively available for only women.
Fortunately, due to the inequality between funding men-owned and women-owned businesses, some government sponsored loans, financial institutions and other traditional lenders have made exclusive provision for women. Here, we review some loan and grants options for women-owned small businesses.
SBA is an acronym for small business administration. SBA provides the best loan options for women. The loan options are not exclusively for women but they have favorable and cheap interest rates.
The SBA is government owned and do not provide loans for small business owners. However, what the SBA does is to reduce the amount being paid back to financial institutions by small business owners. They also cover payment in cases where the borrower cannot pay back.
The SBA supports banks and other financial institutions in lending small business owners amounts ranging from $100 to $500. To apply for such loan, you’ll have to look for a SBA lender in your vicinity. Then, ask them for their requirements and sign up. They would usually request for your credit score and annual revenue.
Grants.gov is a government website that list all government approved grants for small businesses. You find the best grant offers in the country on the website.
To apply for a government sponsored grant, just visit grants.gov and check for available grants options. Check to see if you’re eligible before applying for any grant option.
Also, note that there is no exclusive grant option for women but grants.gov is flexible and user friendly for anyone.
A great alternative to the SBA loans is funding circle. They have very flexible requirements and interest rates. The funding circle provides loans for women-owned business exclusively.
Funding circle provides loans in amounts of $25,000 to $500,000. The repayment is for five years or more and their interest rates ranges from 4.99% to 22.99%.
To be eligible, you need to have a credit score of at least 600 and must have been in business for two years. They usually do not ask for your business annual revenue.
Female business owners should be aware that any financial documentation submitted for business loan purposes reflects their business. Hence, women should try as much as much as possible to provide the requirements required of them. Before, applying for any loan or grant make sure to carry out your own personal research. Also make sure the repayment schedule sits well with you and their interest rate is favorable. Know more here!