Small Business Administration Loans for Women

Learn how the Small Business Adminisitration (SBA) can assist you in your loan process.

Paperwork for an approved business loan.

The Small Business Administration (SBA) provides many financial assistance program resources. While the SBA does not lend directly to anyone, SBA loans for women offers financial products that are guaranteed by the SBA for financial institutions. Therefore, funding for women is more easily obtained, since the loans are first approved through and by the SBA.

Applying for SBA Loans

Women may apply for loans through the SBA in the same way as a regular small business would apply, either through a commercial bank, or a local, regional or national financial institution.

Loan requests through the SBA are evaluated in a similar fashion as other typical lenders. The major benefit with SBA loans for women is that the guarantee reduces the liability associated with the loan for the financial institution. This makes the prospect of loaning through the SBA's program very attractive to many lenders. In this way, the SBA offers a much better advantage for women to obtain funding, than if they were to apply on their own, without the backing of the SBA.

SBA Loan Offerings

In addition to information about small business loans for women, the SBA's financial offerings include information about surety bonds, equity capital topics, special purpose loans and special lender programs.

SBA loans for women also include resources from its Office of Women's Business Ownership (OWBO). The OWBO was established to administer a network of Women's Business Centers (WBCs) located in the United States and its territories.

Loan Costs

The assistance provided by the WBCs and SBA loan information focuses on economically or socially disadvantaged women, with intensive training and counseling on new business development. However, the loans are not automatically inexpensive financial products. Generally, the commercial loan interest rates tend to be offered at the same level as most financial institutions and banks. There is also a guaranty fee assessed, usually starting at 3 percent. Other considerations include a longer amortization rate than most commercial loans. Working capital loans may be financed for up to seven years, while fixed asset loans have a ten year cap. Real estate and construction for business building have a 25 year limit.

In addition to loan information, the WBC also offers data on many grant funding opportunities. Grant applications can be a complex process, and the SBA's resources serve to explain where grants may be obtained, as well as which resources are legitimate.

SBA Partners

Networking has always been an essential part of starting, growing and running businesses. As a networking tool, the SBA has extensive partnerships with many organizations that help locate specialty funding for women, such as business government loans.

Partners, such as the National Women's Business Council, offer advice and mentoring connections that can be very beneficial in learning how to understand and navigate the loan process, while choosing the best options for each particular situation.

Starting from scratch: programs are in place to help women- and minority-owned businesses get the loans they need to start or expand their ... An article from: Alaska Business Monthly
Book (Alaska Business Publishing Company, Inc.)
2005-02-09 20:41:03 by don954

Bush plan to cut micro business loans criticized

President Bush wants to eliminate a program that funnels so-called micro loans to entrepreneurs, a move critics say will hurt very small businesses that depend on the financing.
Bush's 2006 budget provides no funding for the Small Business Administration program, which last year provided about 2,400 loans of under $35,000 each.
"This is very unfortunate news," said Wendy Baumann, president of the Wisconsin Women's Business Initiative Corp., a leading micro lender that draws a significant share of the money it loans from the federal program.
"The Bush administration is making a mistake," said Bill Edwards, executive director of the Association for Enterprise Opportunity, a national group supporting micro enterprises

2010-09-11 07:13:47 by 57State

Obama's new Nationalization Act - Small Business

More troubling is the bill's $30 billion Small Business Lending Fund. We've called this Son of TARP because it authorizes Treasury to purchase preferred stock in banks with less than $10 billion in assets if they agree to increase their lending to small businesses. This empowers Uncle Sam to take equity stakes in community banks and savings and loans so long as they lend as Congress sees fit.
The bill encourages risky loans by applying a sliding-scale interest rate on Uncle Sam's preferred stock. Banks that issue fewer new loans will pay as much as 5% interest, while aggressive lenders will pay as little as 1%

2008-10-20 19:10:40 by -

There are no black people grants and no women

The Small Business Administration can be helpful in securing capital (ie, loans) for small businesses, but they generally don't mess with businesses as small as the one you're mentioning.
There are no grants. This is my industry. I know. People ask all the time and there is no such thing.
She can contact the licensing agency and ask what assistance they provide aspiring daycare owners. There will probably not be financial help, but there can be other kinds. Also google "micro loans" and see if anyone in your area is still giving them out.

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