How to Get a Woman-Owned Business Funded with a Micro Loan

Getting your woman owned business funded with a micro loan is not as hard as you think!:

While having your business certified as "woman-owned" is NOT necessary, sometimes it can give you an advantage when dealing with the government. Especially if your business entails selling to the government, and the government buys EVERYTHING you can imagine, yes, even gift baskets...

Getting a Microloan from the government (SBA):
The Microloan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

Terms, Interest Rates, and Fees for Government Funded Microloans:

The maximum term allowed for a microloan is six years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. The maximum loan amount is $35,000, however, the average loan amount is around $13,000. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Treasury. Generally these rates will be between 8 eight percent and thirteen percent.

Collateral

Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner.

Technical Loan Assistance

Each intermediary is required to provide business based training and technical assistance to its microborrowers. Individuals and small businesses applying for microloan financing may be required to fulfill training and/or planning requirements before a loan application is considered.

How to Apply for a Microloan:

Small businesses that are interested in applying for a microloan should contact a microlender in their area. (This is a PDF file for you)

Microlenders (Intermediaries) are located in 46 of the 50 states, the District of Columbia and Puerto Rico. Alaska, Rhode Island, Utah and West Virginia are the only states without an Intermediary. Rhode Island is currently being serviced by South Eastern Economic Development out of Taunton, MA and a portion of West Virginia is being serviced by Washington County Council on Economic Development out of Washington, PA

Non Government Microloans for Business Women listed by State here US Business Loan Lenders

Repairing Bad Credit may be necessary before applying for that small business micro loan capital.