How to Apply for a Women's Business Loan
According to the National Foundation for Women Business Owners, over 10.1 million firms are owned by women and the Small Business Administration reports that since 1983, women make up 83 percent of the newly self-employed. Owning a business often provides women with greater career satisfaction and more flexibility. But women, like their male counterparts, often need business loans to start, grow and/or expand their businesses.
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Instructions
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Determine your need. Are you looking for start-up funds or resources to expand an existing business? Decide what the money will be used for such as equipment or hiring extra staff. Be careful about asking for money to save a troubled business. While businesses sometimes get loans in difficult times, you'll want to show a plan for how to get the business into the black as quickly as possible.
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Write a business plan. This is the document used by lending institutions to decide whether or not your business is worth the risk. Your business plan needs to outline your business idea, including products and services; analyze your competition and show how your business will be different; provide financial details, including expenses and income projections; and include a marketing plan.
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Research funding resources. The Small Business Administration doesn't lend money, but it does guarantee money lent by financial institutions. It also created the Office of Women's Business Ownership to oversee a network of Women's Business Centers (WBCs) throughout the United States. It's a great resource for women who want to start a small business including grant and loan information.
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Research loan options provided by business organizations in your state. Many states have small business or economic development agencies that provide business loans to special groups such as women.
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Research loan options in your industry. Depending on your business idea, there may be loans available through associations or organizations within your field.
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Visit local banks to inquire about Small Business Administration guaranteed loans or other loan options. Possible loan options include SBA guaranteed 7(a) loans, CDC/504 Loan Program for equipment, microloans up to $35,000, and disaster assistance loans for businesses impacted by a declared disaster.
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Provide all the information needed for the loan in a professional manner. The Small Business Administration is fairly flexible in its requirements, but banks may be more stringent. Make sure you and your business are always presented professionally. Provide any supplemental materials the financial institution needs to make a decision. Getting a loan can be a tedious process, but you want to always present yourself and your business in the best light.
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