DigitalWomenLoans.org

Business Loans for Women

Women Business Loans

Business loans for women are currently available from a variety of different funding sources. Some resources provide listings for private or government funding, or a combination of both. Since, for women in business, whether beginning entrepreneurs, or more experienced owners of sole proprietorships, partnerships, cooperatives, private limited companies (Ltd), or franchises— obtaining small business loans from banks and many loan companies may be next to impossible, business women must explore other avenues to receive business-related funding.

The two primary loan categories available today are conventional loans and government loans. As business loans for women, conventional loans can then be subdivided into conforming and non-conforming loan types. Conforming loans, which are controlled by certain stipulations defined by Fannie Mae or Freddie Mac, designate maximum loan moneys, down payment requirements, credit and income qualifications, and suitable property types. Non-conforming loans are ones which don’t meet “Fanny and Freddy” stipulations. The larger of these are called Jumbo loans, while the smaller loans not meeting credit levels of conforming loans are known as subprime loans. In terms of government funding, the two major varieties of loans most commonly used are FHA and VA loans. The requirements of such government loans often differ from those of other loan types, and your specific business needs will determine whether or not they will be suitable for your enterprise.

For same-day, short-term funding, you as a small business owner might consider a PayDay Loan – Cash Advance of $100 to $1,000. However, they carry high interest rates, require quick payback, and sometimes are more easily obtained when you are a business employee, rather than an owner seeking funding in the area of business loans for women.

Debt consolidation loans can be quite helpful, especially to beginning entrepreneurs or women business owners who are going through a period of financial difficulty, since they allow you to consolidate separate loans into a single loan, in order to lower your payments.

Two other types of loan funds available as business loans for women are small business long-term loans, and home equity loans. The first type, small business long-term loans in amounts of $1,000 to $25,000 to $100,000, are intended for both personal and business needs. Often, they require a higher credit rating than short-term loans, but your overall loan rate on interest owed is typically better. The second of these loan types, home equity loans, can be used for various purposes, such as to replace equity you’ve paid previously and as use for debt consolidation, or a variety of business needs.

Federal grant funding, private foundation grants, corporate sponsorships and Small Business Administration (SBA) loans are all viable means of obtaining business loans for women. The SBA is currently making much progress in helping level the playing field for women striving to obtain
business funding.

Count-Me-In (www.count-me-in.org) is a new fundraising organization which raises money from women for women, favoring experience over credit history when considering applicants. Funding allotted usually ranges from $500 to $10,000.

The Women’s Funding Network (www.wfnet.org) promotes the development and growth of funds for women while encouraging alliances among women, donors, communities and institutions.

The American Association of University Women (AAUW) (www.aauw.org) , as a foundation, is one of the largest private funding sources for female college and university graduates. As a funding agent, it has a special interest in scholars and women professionals in areas which under-represent women.

The Funding Agency (www.fundingagency.net) offers loans for small and start-up businesses, with micro loans beginning at $20,000, and range of loan amounts from $20,000 to $60,000,000. This uniquely designed agency provides funding from both government sources and the private sector.

There are many Web sites and online resources, and well as countless off-line sources to aid first-time grant and loan applicants in completing forms and providing necessary and relevant financial, business and personal data. A quick Web search will reveal many such helpful and enlightening sites and sources pertaining to various types of funding and business loans for women.

Many of these sites have immediate online assistance available for applicants in the process of seeking loans or grant funding. The Foundation Center (www.foundationcenter.org) provides free advice and assistance in locating grant funding applicable to your particular business situation.

All major loan companies offering business loans for women provide assistance when needed in completing application forms and providing pertinent data and information. And most online loan companies offer fairly self-explanatory, simplified loan applications and form downloads for your convenience, when needed.

To be sure, locating appropriate sources to address individual needs and requirements pertaining to loans for women in business can be somewhat confusing and even overwhelming at first. Yet, there are always help resources available to assist you in obtaining that business loan or grant that will put you in the lead along your path to outstanding business success.