How to Obtain Women's Minority Business Loans

Applying for SBA loans can be a good source of funding for women-owned businesses.

The primary source of funding assistance to minority and women-owned businesses is the Small Business Administration. The SBA does not provide loans directly to women or minorities. In fact, there are no specific loan dollars set aside for these groups. Instead, the Office of Women's Business Ownership, a division of the SBA, helps women who own businesses gain access to the same loans as other business owners.

Things You'll Need

• Business plan
• Good credit
• Assets or down payment

Instructions

1. Prepare a business plan. Your business plan needs to touch on your business's objective, competitive advantages and your experience. It is also essential for your plan to include details on financial expenses and projections. For help writing a business plan, visit the U.S. Small Business Adminstration's (SBA's) website for a complete plan.

2. Take advantage of resources offered through the Office of Women's Business Ownership (OWBO) at the Small Business Adminstration. Advisers can help you refine your business plan, offer insight into appropriate loan limits and direct you toward the correct loan programs for your needs.

3. Research loan programs. The SBA does not have loan programs specifically for women. However, it does encourage women and minorities to apply for other grants and loans. There may be loans in your area for women-owned business. The OWBO has a complete list of grants and programs available.

4. Complete all application information. A loan application is like a job application; it is the first thing a lender sees about you. Prepare the application thoughtfully, and include any supplemental documents needed at the time of submission of the application.

5. Provide verification of collateral or assets. It is rare to achieve a loan with no asset base or down payment. If you do not have the resources needed, consider adding a partner or investor that can help you with the initial funding needed. "Angel investors," such as family members and friends, can help get your business the small boost required to qualify for a loan.

References

• SBA.gov: Office of Women's Business Ownership
• WomenOwned.com: Grants and Loans for Women Business Owners

Resources

• SBA.gov: Write a Business Plan