Where To Find Business Loans For WBEs

As the number of women in the workforce grows, so too do the opportunities for women. This includes incentives, information, and financing explicitly designed for women interested in starting a business. The Small Business Association gave away 2.5 billion in 2004, and the numbers have been increasing since then.

This growth of opportunities is credited to the federal government’s initiative to increase opportunities for women and minorities. To continue this success and to continue offering opportunities to women, the Small Business Association has created the Office of Women’s Business Ownership. It should be noted that the Small Business Association defines a woman-owned business as “a small business concern—(a) which is at least 51 percent owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (b) whose management and daily business operations are controlled by one or more women.”

A Federal Grant encompasses the financial incentives for women for non-profit businesses and a small business loan guarantee program.
Here’s how the loan guarantee program works:

As a woman business owner, you head to your bank to apply for a small business loan. If your bank cannot provide financing to your business, or if the terms are unreasonable, you can ask your bank to submit your loan application to the small business association for consideration.

The Small Business Association’s objective is to help women and minorities find financing. In this situation, the SBA may partner with your local bank and offer your loan a government guarantee. SBA programs are designed to be valuable for new business start-ups and in instances where you may not have the financial standing to qualify for a standard loan. According to the SBA, their “loan application package can be as simple as a one-page form, and the SBA can approve an application in 1-7 days.”

The Small Business Association also recommends you visit your local Small Business Association office to strengthen your business plan and loan application before applying. You can also work with your district office to pre-qualify for a Small Business Association Guaranteed Loan. They also recommend that you consider the SBA’s Microloan Program if the amount of money you need to borrow is less than $25,000. This program was created specifically for women and minorities.

The opportunities for education for women and minorities provided by the SBA are tremendous also. Plan a visit to your district office or hop online and see if any education or financial opportunities meet your needs.