Did you know that there are small business loans specifically for women? That’s right; there are programs and funds out there for the women entrepreneurs and business owners. Women can get money through various funding sources such as grants, loans designed specifically for women, and government funds.

Even though the SMBA and MBDA are great resources for women business owners, banks will and can give loans and going to your commercial bank should be your first step in obtaining financing for your company. The positive aspects of getting funding from a bank are that the loans are safe and you will still have complete control over your business. Also, depending on your situation, you might be able to get upwards of $25,000 to $100,000 while financing from the SBA might be considerably lower. If you want to obtain a loan from a bank, then you’re going to have to execute your plan flawlessly. The first step is to develop a good relationship with the lender, if the lender knows you, emotion will take a play in the decision making process. Instead of being looked at as a number, you will be looked at as a human being. The best way to start developing a good relationship with the bank is by staying active. Trying getting a smaller loan and open up a few accounts with them. The more you’re around, the better they will get to know you and the more they will treat you as a person instead of a burden. The next thing you need to have is a solid business plan. You can obtain a simple business plan off the internet. Any business plan should have your mission, goals, how you’re going to obtain financing, how much financing you need and five year income plans. Make sure you know everything about your business and that you know everything about your financial history.

The Small Business Administration (SBA) website has a page dedicated to helping out women business owners in order to increase entrepreneurial development amongst the opposite sex. The SBA provides the largest amount of loans in the United States. The appealing part of the SBA is that future and present business owners have the chance to obtain a loan that is backed by the government. Unlike some lending companies, the SBA does not discriminate against race or gender and has been known to give out three to five times more loans to women entrepreneurs than loans that were given by commercial banks. The best bet in securing a loan through any lending agency is to have a solid business plan and an understanding of the mission and goals of the business. Women have been known to have the entrepreneurial spirit and are not given this ability with the amount of resources that are now available to them. A list of the Women’s Business Center offices can be found at their website at http://www.sba.gov/idc/groups/public/documents/sba_program_office/sba_ro_do_wbc.pdf

Another great resource for women trying to obtain a small business loan is the Minority Business Development Agency (MBDA). This agency is federally funded and is focused on providing resources to grow and advocate businesses that are owned by minorities. Funding is not directly given to the women that own a small business but the agency’s resources are used to allocate and find funding from other lenders.

Ok, what are other ways to get funding as a woman trying to develop a small business? If a loan from the SBA or other lending agencies doesn’t work out, then you might have to consider some other options. If you have good credit, maybe try financing some of your business on your credit cards. However, this is a risky endeavor and if you are not sure whether you will make enough to pay off your cards, then your credit might be ruined or you might have to file for bankruptcy. Another way to get money to start a business is by borrowing from your friends and families. If you have a sound business plan and can convince your family or friends to let you borrow some money, then why not? They can be considered partners in your business but make sure that all contracts and stipulations are put in writing and stored in a corporate file. If your family and friends do not want to lend you money, then you can try to obtain funding through an angel investor or a venture capitalist. Angel investors give you money and are usually hands off. However, these investors want do want a piece of the pie when the dough starts rolling in and usually want a return on their investment tin a short amount of time. Venture capitalists on the other hand, want to be very involved in your business and have their hands in a lot of different pots. These people are usually well off and have many connections throughout the community. They tend to be very aggressive and controlling and you might get fed up with them trying to be the boss (that’s the reason why you wanted a business in the first place, right?)