SBA Loans for Women: An Application Checklist

Entrepreneurs should consider SBA loans for women as a way to fund their business. These loans are not provided directly by the Small Business Administration (SBA) but are guarantees offered to lending institutions. The program guarantees 80 percent of the loan amount made by a private lender for loan amounts up to $100,00 and 75 percent for loans in excess of $100,000 and up to $750,000.

These guarantees are generally made for women entrepreneurs who may not otherwise have access to business loans due to low credit scores or lack of collateral. To apply for a loan, a woman entrepreneur should understand her credit score and be able to demonstrate the ability to pay back the loan.

Check Credit Score

Having good credit is an important key to acquiring a business loan at a good rate. However, a woman with poor credit may still be able to obtain an SBA loan. It is important to ask what the requirements for the loan are because you may be able to qualify. Access a recent copy of a credit report and review all record information. Dispute the accounts that are erroneous. In time, the disputes will be answered and your credit score will improve.

Gather Bookkeeping Records

A lender will also want to verify that the borrower represents a good lending risk. Gather the bookkeeping records of your company to illustrate the ability to repay your loan debt. The lender wants to know that the borrower can pay so be sure to provide evidence of income to reduce the fear of loan default. Having these items readily available will help guarantee you are taken seriously for a business loan with an SBA guarantee.