Women own 39.1% of all U.S. businesses, according to the 2024 Wells Fargo Impact of Women-Owned Businesses report, representing a 13.6% increase from 2019 to 2023. Still, female business owners face greater obstacles in borrowing funds.
Aside from rising interest rates and lenders tightening requirements, a 2023 Federal Reserve study revealed that in 2022 a lower percentage of women were approved for small business loans than men. So it's important to compare lenders and their offerings to find the loan most likely to suit your needs.
Below, CNBC Select rounds up the best loans for women-owned businesses. Our top picks suit a variety of situations and needs including microloans, long-term loans and loans for low credit scores. (See our methodology for more information about how we chose the best small business loans for women.)
Best for microloans
Kiva
Types of loans
Peer-to-peer crowdfunded loan
Better Business Bureau (BBB) rating
N/A
Loan amounts
$1,000 to $15,000
Terms
Up to 3 years
Minimum credit score needed
No minimum credit score required
Minimum requirements
You must be 18, live in the U.S., use this loan for business purposes, not currently in foreclosure, bankruptcy or have any liens, and have a small number of your friends and family willing to make a loan to you (Nevada and North Dakota residents are not ineligible)
Terms apply.
Pros
- Ability to borrow with no interest
- Loans are geared toward borrowers who are unbanked and have trouble qualifying for financial products
- Ability to market your product to 1.6 million lenders on Kiva
Cons
- You need to prove your creditworthiness by inviting friends and family to lend to you
- It can take a while to receive your loan since investors need to raise money
- No BBB rating
Who's this for? Kiva is worth considering if you don't need to borrow a large amount of money. It is a non-profit crowdfunding platform that offers microloans of up to $15,000 with a mission of unlocking capital for underserved communities.
Standout benefits: Kiva stands out for charging 0% interest and no fees. It also doesn't have traditional business and credit score requirements.
Best for lower credit scores
OnDeck
Types of loans
Term loan
Better Business Bureau (BBB) rating
A+
Loan amounts
$5,000 to $250,000
Terms
Up to 24 months
Minimum credit score needed
625
Minimum requirements
In business at least 1 year, $100,000 annual revenue, business bank account
Terms apply.