Business Loans for Women: An Overview

Many lenders have a program that will provide business loans for women. Many organizations put a premium on promoting business growth with women owners. Therefore, if you are a woman and desire to start your own business, there are a few different places that you could look for financing. Most of the programs provide several benefits and can help get your business off the ground. Here are a few things to consider if you are a woman looking for a business loan. 

Loan Options

As a woman, you will have several different options for business loans. Some of the most popular types of business loans are fixed rate loans and balloon loans. With a fixed rate loan, you will get a certain amount of money and a specified term to repay the loan. Your interest rate will be the same throughout the loan and you will make the same payment every month. Part of your payment will go towards interest and part of it will go towards the principal balance of the loan. 

With a balloon loan, you borrow a specified amount of money and make only the interest payments during the life of the loan. At the end of the term, you will have to pay off the entire balance of the loan. This provides you with a smaller monthly payment but usually requires you to refinance at the end of the term.

SBA Loans

One great source of funds for women business owners is the Small Business Administration. The SBA works all over the United States through many different lenders. They have a variety of programs that could potentially help small business owners. They will guarantee the loans up to a certain amount so it makes it easier to get approved for these types of loans. They also require a low monthly payment and provide a low interest rate. The Small Business Administration puts an emphasis on helping small businesses in the country. Therefore, if you are a woman looking for a business loan, the SBA should be your first stop.

FSA Loans

The Farm Service agency also has a great loan program for women. The Loans for Socially Disadvantaged People program is part of the USDA and FSA. This will only be applicable if you want to start a business that has to do with agriculture. However, it does give special incentives to people of protected classes. This includes women, people of a minority, and those with disabilities. It provides some great interest rates, flexible terms, and low down payments. If you are looking to start a business in the agricultural sector, there is no better program to go with. 

Getting a Loan

Regardless of the program, you will have to display some sort of credit worthiness. It helps to have a sound business plan in mind as well. As long as you have a decent credit history and some sort of income, you should be able to find a program that meets your needs. 

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