According to recent data, the number of women-owned businesses in the United States continues to rise, accounting for nearly 40% of all U.S. businesses. From tech startups and retail boutiques to wellness services and consulting firms, women are shaping industries and contributing significantly to local and national economies.
But despite this growth, access to funding remains one of the biggest challenges women entrepreneurs face.
Many women still struggle to secure the capital needed to launch or grow their businesses. Whether it’s due to limited credit history, a lack of collateral, or bias within traditional lending institutions, the road to funding can feel unnecessarily steep.
That said, women-owned small businesses can leverage loans that are designed for them. From government-backed SBA loans and nonprofit microloans to online lenders and community-based programs, women have a variety of funding sources to choose from.
Access to capital remains one of the biggest barriers for many women entrepreneurs. Even with the growth of women-led businesses, the path to funding isn’t always equal. Structural and financial challenges still limit opportunities for women, especially in traditional lending environments.
One common issue is collateral. Many women start small, home-based, service-driven, or side businesses, which often means fewer assets to secure a loan. Without property or equipment to back the request, many loan applications are automatically declined. This is especially frustrating for women whose business models are profitable but asset-light.
Credit history also plays a major role. Women may have less access to personal credit or shorter credit histories, which can hurt their chances of qualifying for standard women-owned small business loans. These factors don’t reflect the strength of the business itself, but they often affect the outcome of an application.
Then there’s bias—sometimes subtle, sometimes not. Research shows that women are more likely to be asked personal financial questions when applying for business funding and may receive smaller loan amounts even when presenting similar business metrics as male counterparts.
The result? Fewer approvals, lower funding, and slower business growth.
Thankfully, things are changing. There’s growing awareness in both public and private sectors about the need for equitable access to funding. Many lenders now offer dedicated women-owned small business loans with relaxed requirements, mentorship support, and educational resources.
Understanding how women-owned small business loans work can help you make better decisions. Here’s a quick breakdown of how they work—and what to expect.
There are several types of women-owned small business loans, each serving different needs. Term loans provide a lump sum of cash that is repaid over a set period, usually with a fixed interest rate. These are ideal for planned expenses like renovations or large inventory orders.
Business lines of credit, on the other hand, offer more flexibility. You can draw on them as needed and only pay interest on the amount you use.
Microloans—often under $50,000—are popular with startups or very small businesses. These are frequently offered by nonprofits or community lenders and may come with added benefits like mentorship or financial training. They’re particularly useful for women launching their first business or those operating in underserved communities.
To qualify for any of these loan types, lenders typically look at factors like credit score, annual revenue, time in business, and the purpose of the loan. For traditional loans, you’ll likely need solid financial records and a strong credit profile.
However, many alternative and mission-driven lenders have more flexible criteria—especially those focused on women-owned small business loans.
When it comes to tailored financial solutions for women-led businesses, 1West is the go-to provider. With a focus on accessibility, flexibility, and real business needs, we are the trusted partner for women entrepreneurs looking to secure the right funding.
Small Business Administration (SBA) loans are a popular choice for women entrepreneurs seeking competitive interest rates and long repayment terms. Backed by the federal government, these loans are issued through banks and other lending institutions, making them a reliable option for many business owners.
The Accion Opportunity Fund (AOF) is a nonprofit lender focused on serving historically underrepresented entrepreneurs, including women, minorities, and low-income business owners. If you’re building a small business and facing barriers to traditional financing, this is one of the most accessible options out there.
If you’re just getting started and looking for a zero-interest loan, Kiva offers a unique, community-driven approach. Rather than borrowing from a traditional lender, you raise your loan amount through a global network of individual supporters, making it both accessible and empowering.
For women entrepreneurs who want to compare multiple funding offers quickly, Lendio offers a streamlined way to access business loans from a wide range of lenders.
As a loan marketplace, Lendio simplifies the process by matching your application with dozens of potential funding sources, saving you time and expanding your options.
Women’s Economic Ventures (WEV) is a California-based nonprofit organization dedicated to supporting women in business through a combination of funding, education, and mentorship.
For women entrepreneurs located in the Central Coast region of California, WEV provides a community-first approach to business growth.
When cash flow gets tight, Fundbox offers a fast and flexible way to access short-term funding. Known for its quick application process and automated approvals, Fundbox is ideal for women entrepreneurs who need working capital without a lengthy wait or piles of paperwork.
Grameen America is a nonprofit organization dedicated to helping women in underserved communities build small businesses through microloans, training, and peer support. If you’re a woman with limited access to credit or formal banking, Grameen America offers an empowering path to entrepreneurship.
OnDeck is a well-known online lender that provides fast, short-term financing for small businesses. With streamlined applications and same-day funding, OnDeck is a convenient option for women entrepreneurs who need reliable capital to keep operations moving.
With so many financing options available, choosing the right loan can feel overwhelming, especially when you’re focused on growing your business. The key is to approach the process with a clear plan, realistic expectations, and an understanding of what different lenders offer.
Here are practical tips to help you find the best women-owned small business loans for your needs.
Start by identifying why you need the loan. Are you funding a renovation, covering payroll during a seasonal dip, or purchasing new inventory?
Different needs call for different types of women-owned small business loans—term loans for long-term investments, lines of credit for short-term flexibility, and microloans for smaller expenses. Clear intentions lead to better borrowing decisions.
Before applying for any women-owned small business loan, take stock of your financial standing. Lenders will consider your credit score, revenue, business age, and debt obligations.
Understanding these numbers helps you target lenders whose requirements align with your current stage, especially if you’re still building credit or managing limited revenue.
Not all women-owned small business loans are one-size-fits-all. New businesses might benefit from microloans offered by community lenders like Accion or Kiva. More established businesses could qualify for larger amounts through SBA programs or term loans from 1West.
Choosing a loan structure that suits your business’s maturity and cash flow can prevent repayment stress.
When reviewing loan options, don’t look only at interest rates. Evaluate the full APR, which includes all fees and costs associated with the loan. Different women-owned small business loans may offer weekly or monthly repayment terms, different penalties, or require collateral.
Taking time to compare each offer thoroughly ensures you’re choosing a loan that won’t strain your operations down the road.
Seek out lenders who offer dedicated support for women-led enterprises. Some lenders specialise in women-owned small business loans and provide added value through mentorship, financial education, or inclusive lending practices.
Don’t overlook the value of free guidance. Women’s Business Centers (WBCs), SBDCs, and SCORE offer training and assistance with finding and applying for women-owned small business loans.
They can help prepare financial documents, improve your loan application, and connect you to trusted funding sources—especially helpful if you’re applying for your first loan.
Before accepting funds, map out your repayment plan. Consider how the loan will impact your monthly budget and whether your revenue can consistently cover the obligation.
Responsible use of women-owned small business loans starts with a clear understanding of the loan’s long-term impact on your finances.
Whenever possible, work with lenders who see you as a partner, not just a borrower. Building a relationship with your lender, especially one who supports women-owned small business loans, can lead to better loan terms, future funding opportunities, and more personalised support during your business journey.
Access to funding is a key part of building a resilient, thriving business, and today, more lenders than ever are offering dedicated support for women entrepreneurs.
While there’s no shortage of reliable sources offering women-owned small business loans, keep in mind that the best loan for your business is the one that fits your goals, aligns with your financial situation, and comes with support that extends beyond funding.
At 1West, we understand the unique challenges and opportunities that women business owners face. That’s why we offer personalised loan solutions, transparent terms, and dedicated guidance—whether you’re just starting out or scaling your operations. Our team is here to help you make confident financial decisions and grow your business on your own terms.Ready to explore your options? Visit 1West to learn more about how our services can support your next step forward.
Asset financing can seem complicated, but it’s quite simple. But, the jargon used in the industry can be confusing, especially as some asset financing methods have terms that sound identical, abbreviated, or used interchangeably.
Is bookkeeping hard? The short answer is no. It’s a common misconception that you need a formal education to be a bookkeeper, but anyone with solid math skills and the right resources can do it.
There’s the 1West way to get smart financing fast — and there’s everything else. We believe in your small business and we believe in our approach. No nonsense. No surprises. Just expert guidance from start to finish.
Find out what's next
