Sources of Small Business Loans for Women

You are a women entrepreneur looking for a small business loans to start up your venture or fund your on-going financial crisis. Rest assured, because there are state and federal government agencies which have framed financial assistance programs to help you meet your requirements. If you have an excellent idea and the right motivation to reach your goals, finance will not be a problem. All you need to do is to take the right approach and knock the right doors.

business loans for women

The agencies that generally extend financial grants and assistance to women are as follows:

Minority Business Development Agencies

These development agencies under the U.S. department of commerce have special loan granting programs for women & minorities. They start with counseling on the type of grants suitable for your business. If required they also help you choose a private or government aided business, make a grant proposal and explore other possible funding opportunities.

Environmental Protection Agency Grants

Environmental Protection Agency Grants (EPA) are another source of finance for the women entrepreneurs. EPAs have small business loan quotas for women owned ventures in the services, real estate, equipment and supplies sector. Recent legislation has ordered the EPAs to include more women & minority suppliers and contractors. The office of small disadvantaged business utilization looks after the women and minority grants program under the EPA grants.

Small Business Administration Programs (SBA)

Women & minority entrepreneurs cannot find a better funding source than the small business administration programs. The objective of SBA is to promote and develop small business in the US and create opportunities especially for the minority & women owned businesses.

A thorough research work should be done before applying for such grants because there are only a few agencies that specialize in minority and women business loans at reasonable rate of interests. So, look carefully into various funding opportunities, gather all the necessary information, draft a grant proposal and apply with proper documentation in time. You are certain to get your grant sanctioned. For more discounted offers on small business loans for women have a look –


Long-term or Short-term Loan – Which is More suitable?

Small business enterprises covet both short as well as long term loans. A lot depends on necessity and specific requirements of businesses. In the case of organizations looking for elongated term repayment periods, the long term loan is ideal. For enterprises that look for a repayment guarantee not exceeding a few years, short term loan is the best choice.

Long term or Short term Loan

Long term or Short term Loan

Enterprises need to detail out their specific requirements such as the amount required, interest they can pay, and working capital needed to cover up temporary capital requirements. This should be done to assess and find out what sort of grant should be borrowed. If the business is in the need of large capital and can pay high interest then obviously it can opt for the short term loan support. However, if the organization is in a position to pay back slowly then one should opt for long term small business loans.

However, time of borrowing business loans also matter. For example, in a normal economy, interest for short term advances is higher compared to a ‘recession economy’ when the interest rate is quite low. So, every factor should be taken into consideration while deciding the loan type. Borrowers should be keen to borrow only those loans that they can return along with the interest. It is necessary to pay back borrowed advances in time otherwise lenders will charge extra interest for the grant. So, it is while borrowing that business owners should assess how much grants they can deal with. Based on such an assessment, applications should be filed.

There are also other aspects. A short term grant is considered more risky by financers than the long term fund. So, anyone applying for the long term support need to give reasonable assurances such as a good collateral and fixed income details. It is the duty of the borrower to convince lenders and to make them feel that they are on the safe side. That awarding grants to the company won’t put them to any risk. When reliable commitments are made, the lender would like to give any kind of loans – whether extended or short-term to a business owner.