Women entrepreneurs face many challenges in terms of starting a small business. In particular they face tremendous obstacles when it comes to qualifying for loans. If small business loans for women are what you want then your smartest move is to look into what the U.S. Small Business Administration (SBA) has to offer you.

It is the goal of the SBA to make the playing field as level as possible for all women entrepreneurs. It is also their goal to provide access to as many programs and services that can benefit women who are starting out on the entrepreneurial front.

According to the SBA there are as many as 10 million businesses owned by women throughout the country. These businesses employ as many as 27 million individuals and bring a tremendous amount of money into the economy. It is estimated that that amount is close to $3.6 trillion.

Starting a small business is always risky business and many lenders are hesitant to lend to women who wish to start a small business. Banks are often good bets for small business loans for women looking for short-term loans. However their greatest hesitation lies in long-term loans because the risk becomes even greater as the amount of money and the longevity of a loan increases.

This is where the SBA can be of assistance to the small business owner. If the SBA is willing to take part in the risk by offering the bank a federal guarantee of repayment then the lenders at the financial institution would be much more inclined to agree to long-term loans for women business owners.

Types of SBA Loans

The SBA has as its specialty the backing of two different kinds of loans. First of all for those looking for working capital there is the flagship 7(a) program. Secondly there is also the Certified Development Company program (which is also sometimes referred to as the 504 loan).This loan is meant for those small business owners who are looking to buy or rehabilitate assets that are fixed. This would include such things as buildings, equipment, land and machinery.

Advantages of Using an SBA Loan

There are some very significant advantages to using an SBA loan to finance your business endeavor. First of all the loan repayment terms tend to be longer than they are with other types of loans. The majority of SBA loans allow for a repayment term of seven to 10 years. Some loans for real estate will allow for as much as 25 years.

You do not have to put down collateral in order to apply for and qualify for an SBA loan. However if there is something that could constitute as collateral then it is in your best interests to pledge it.

The SBA is willing to work with your lending institution to arrange repayment terms that will satisfy both of you. They work to offset the risk that qualifying for small business loans for women can often elicit.