Whether you’re a small business owner or a big one, there are a number of sources you can look to for small business loans for women. These can be loans from the SBA or a peer-to-peer lending source. There are also opportunities in the Accion Opportunity Fund, Funding Circle, and the Tory Burch Foundation.
Peer-to-peer lending
Getting a small business loan from peer-to-peer lenders is a great alternative to bank loans. But you should be aware of the pros and cons before you sign up for a loan.
Peer-to-peer lending is a relatively new method of borrowing money. The process involves connecting borrowers with individual investors. These investors will fund a portion of the loan themselves. The funds are then disbursed to the borrower. The term of the loan can be as short as a few months or as long as five years. The interest rate will depend on the creditworthiness of the borrower.
Peer-to-peer lenders typically require a personal credit score of 600 or higher. Those with lower scores can still get a loan, but they may pay a high interest rate.
SBA 7(a) loans
Whether you’re a new business or a growing business, SBA 7(a) loans for women are a great option. The program offers competitive interest rates and flexible terms. The loans can be used to purchase equipment, inventory, supplies and working capital.
SBA 7(a) loans are issued by an SBA-approved lender. To qualify, the business owner must meet certain financial and character criteria. In addition to meeting these requirements, the business must also be profitable. Applicants should read the guidelines carefully.
The maximum amount of money that a SBA loan can be approved for is $5 million. Generally, the amount of time it takes to be approved is five to ten days. However, some programs require approval in less time.
Depending on the type of loan and lender, there may be a guaranty fee. These fees range from 2% to 3.5% of the total loan amount.
Accion Opportunity Fund
Whether you are a woman looking for a small business loan or an entrepreneur who needs a financial boost, Accion Opportunity Fund is the lending service for you. It offers flexible terms, low rates and a variety of support resources. It also provides educational opportunities and mentoring programs.
To qualify for an Accion loan, you must have a solid business or financial history, a good credit score, and at least a year of operating history. In addition, you must own 20% of your business or be a co-owner.
If you do apply for an Accion small business loan, you can expect to be offered a loan with a variable rate, depending on your credit score. However, you will be required to pay back the principal and interest over the life of the loan.
Funding Circle
Getting a small business loan can be difficult. You may not have a great credit score, or you may not be established in your industry. Fortunately, there are a number of resources available to help you get the financing you need.
One of these is Funding Circle. This is a company that provides loans to women owned businesses. This lender offers term loans and lines of credit.
These loans are a good option for expanding your business or paying your employees on time. You can also use these loans for buying equipment and improving your product line. In addition, these loans can help you build your business credit rating.
Compared to traditional bank loans, funding times for these loans are faster. You can apply for a loan with Funding Circle online, and they will make a decision within 24 hours. Moreover, the company offers competitive rates and a simple rate quote.
Tory Burch Foundation
Founded by Tory Burch, the Tory Burch Foundation aims to empower women entrepreneurs by giving them access to capital and mentoring. In addition to providing no-interest loans, the organization offers a variety of other resources to help women succeed. The organization is also active on Twitter and Facebook.
The Tory Burch Foundation launched a program in 2015 that is designed to provide small business loans to women. The initiative is a partnership between the Tory Burch Foundation and Bank of America. In the five years since the program’s launch, it has helped over 2,500 women entrepreneurs grow their businesses.
The Tory Burch Fellowship Program is named after the founder and provides year long support and resources to five women entrepreneurs. This includes a three-day workshop series in New York City, as well as year-long mentorship from the Tory Burch Foundation and top industry leaders. The program also includes access to a personal pitch coach. The program’s grand finale is a pitch competition before a panel of judges.
