Unlocking Small Business Funding with SBA Loans for Women Entrepreneurs

Women entrepreneurs are reshaping industries, launching innovative businesses, and driving economic growth. Yet, despite owning nearly 40% of all U.S. businesses, the 30-year average of all female-founded startup venture capital funding is 2.4%. This funding gap can make it difficult for women-owned businesses to scale, hire employees, or invest in new opportunities. 
 
SBA lending is designed to bridge this gap by offering flexible, affordable financing options tailored to small businesses. If you are a female business owner looking for ways to fund your business’s growth, this guide will walk you through options for SBA loans for women entrepreneurs, how to apply, and what to expect.

Why SBA Loans Matter for Small Business Funding for Women Entrepreneurs

Women historically face higher rejection rates, have less access to venture capital, and have a greater reliance on personal savings to fund their businesses. 

Backed by the government, Small Business Administration (SBA) loans make it easier for small businesses—including women-owned businesses—to access funding with: 

• Lower down payments 
• Longer repayment terms 
• Competitive interest rates 
• Flexible underwriting for startups and growing businesses 

Unlike traditional loans, which often require perfect credit and substantial collateral, SBA loans provide a realistic financing pathway for women looking to start or expand their businesses. 

Women-Owned Business Financing: Certifications & Federal Contracting Opportunities

Women entrepreneurs can benefit from federal contracting programs designed to increase access to lucrative government contracts. The Women-Owned Small Business (WOSB) Federal Contract Program helps eligible businesses compete for federal contracts in industries where women have been historically underrepresented, providing critical women-owned business financing opportunities. 

Why Get Certified? 

• Access to federal contracts set aside specifically for WOSB and Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) 
• Competitive advantage when bidding for government work 
• Increased business credibility and visibility 

How to Get Certified 

Women business owners can seek certification through the Small Business Administration (SBA) WOSB Program, or through third-party organizations such as: 

• National Women Business Owners Corporation (NWBOC) 
• U.S. Women’s Chamber of Commerce (USWCC) 
• Women’s Business Enterprise National Council (WBENC) 

Certification is an essential step in unlocking government contract opportunities, providing another powerful avenue for women entrepreneurs to grow their businesses. 

How an SBA Loan Helped Sarah Scale Her Business 

Sarah¹, an entrepreneur from Philadelphia, had a dream: to bring high-quality, organic skincare products to her community through a franchise business. She started small, running her first store with personal savings and credit cards. But when demand grew, she needed funding to open a second location, hire staff, and invest in inventory. 

Traditional banks turned her down due to a lack of extensive business history. But an SBA 7(a) loan provided her with funding at a low-interest rate and a long repayment term. With this support, she successfully expanded her franchise, increasing revenue consistently year over year. 

Sarah’s journey is an example of how SBA lending can empower women entrepreneurs to scale their businesses successfully. With the right financial tools and support, your vision can be transformed into a thriving enterprise. The SBA provides invaluable resources that help women like Sarah overcome funding barriers, expand their businesses, and turn their career ambitions into reality.  

Lending Options: SBA Loans for Women Entrepreneurs 

Not all businesses have the same financial needs, so the SBA offers several loan options. Here are three of the most beneficial SBA loans for women-owned businesses: 

SBA 7(a) Loan – Best for General Business Growth 

• Loan Amount: Up to $5 million 
• Uses: Working capital, expansion, hiring employees, marketing, equipment purchases 
• Ideal For: Women entrepreneurs looking to expand their business, manage cash flow, or invest in new opportunities 

In the illustration used above, Sarah used an SBA 7(a) loan to open her second organic skincare franchise location. 

SBA 504 Loan – Best for Real Estate & Equipment 

• Loan Amount: Up to $5.5 million 
• Uses: Buying commercial property, renovating existing space, large equipment purchases 
• Ideal For: Women business owners looking to buy a storefront, warehouse, or office space 

For example, if you run a female-owned manufacturing business you could use an SBA 504 loan to purchase production equipment or a larger facility. 

SBA Microloan – Best for Startups & Smaller Capital Needs 

• Loan Amount: Up to $50,000 
• Uses: Inventory, initial marketing, hiring your first employee, launching a new product 
• Ideal For: Women launching new businesses or side hustles that need small but critical capital 

A new female entrepreneur could use an SBA Microloan to fund inventory for her first product launch. 

Your SBA preferred lending partner will have the resources necessary to help you figure out which loan is best for you and your circumstances. Ask your lender about any potential considerations for your business. 

Common Questions and Concerns About SBA Loans 

Do I Qualify for an SBA Loan? 

• You must operate a for-profit business 
• Your business should meet the SBA’s size standards (most small businesses qualify) 
• You need to have invested some personal equity into the business 
• You must demonstrate an ability to repay the loan 

You can learn more about the terms, conditions, and eligibility requirements on the SBA’s website. 

What If My Credit Isn’t Perfect? 

• SBA loans offer more flexibility than traditional bank loans 
• A strong business plan and revenue projections can help you get approved 
• If your credit score is below 650, consider an SBA Microloan or improving financials before applying 

How Long Does It Take to Get Approved? 

• Loan approval times typically range from four to six weeks, but SBA Preferred Lenders, like Quaint Oak Bank, can process loans faster 

Some SBA loan programs offer special considerations that may apply for a women-owned business. Your business banking partner and SBA Preferred Lending Partner will be able to walk you through all necessary considerations before applying.

How to Apply for an SBA Loan Step-by-Step 

Applying for an SBA loan may seem complex but breaking it down into steps makes it manageable and straightforward. 

Step 1: Create a Business Plan 

• Outline your business model, revenue goals, and funding needs 
• Show how SBA funding will help your business grow and succeed 

Step 2: Gather Financial Documents 

• Business tax returns (last two to three years) 
• Profit and loss statements and balance sheets 
• Personal and business credit reports 

Step 3: Find the Right SBA Lender 

• Work with an SBA Preferred Lender for faster approval 
• Ask about women-specific lending programs 

Step 4: Submit Your Application 

• Ensure your documents are complete and accurate to avoid delays 

Step 5: Get Funded and Scale Your Business 

• Once approved, use the funds strategically to drive business growth 

You can read more on what you need to know before beginning your SBA 7(a) application in our blog. 

Scale Your Business and Grow with SBA Loans for Women Entrepreneurs

Access to women-owned business financing is essential for fueling the growth and success of women-led businesses. Whether you’re looking to expand operations, hire employees, invest in equipment, or secure a commercial space, SBA loans provide the flexible and affordable capital needed to take your business to the next level. 

Like other female entrepreneurs who choose to leverage SBA financing, you can overcome traditional lending barriers, gain access to government-backed funding, and position your businesses for long-term success.  

To learn more about the financing options available to you, contact a member of our SBA Preferred Lending Partner team for more information using the form below.