There are a number of options available to women for obtaining small business loans. One of the most well-known types of business loans available for women is through the Small Business Administration (SBA). The Small Business Administration does not lend money directly to women, corporations, partnerships, or other individuals, but rather, Small Business Administration loans for women can simply guarantee loans that have been submitted by financial institutions. In other words, a woman interested in a business loan can be obtain a loan easier if the loan is approved and guaranteed by the Small Business Administration. Small Business Administration Loans for women are applied for just as with a regular small business loan, namely, through a commercial bank, or another local, regional, or national bank. Guaranteed approval for Small Business Administration loans for women offers women the opportunity to obtain monies without the hassle or stress involved with wondering whether or not the loan will be approved. To come to a decision on a loan request with the Small Business Administration, the SBA evaluates a business or potential business idea much the same as any other lender. Small Business Administration loans for women, however, guarantee a financial institution that the loan will indeed be paid. The SBA is of huge assistance to small businesses owned by women, especially if a financial institution will not approve a business loan. Reasons that a financial institution may not approve a loan may including the following: - The borrower has insufficient collateral. - The particular area of business or industry is a high risk to the financial institution. - The business is older and requires much

updating to succeed. In these instances, Small Business Administration loans for women can come into play, and can assist a woman in obtaining a loan for business purposes. With guaranteed Small Business Administration loans for women, the SBA is guaranteeing the financial institution, or the lender, that 80 percent of a loan value up to $100,000 will be paid back in the event of default, and 75 percent will be paid to the lender on loans over $100,000 that default, with a maximum loan value guarantee of $750,000. Small Business Administration loans for women offer lenders the security and guarantee that a business loan will be paid back to the financial institution lending the money if the money is not paid back by the borrower. Small Business Administration loans for women are, therefore, a hugely powerful lending tool for women in business, including those women just entering the business world by starting a new business, as well as women purchasing an existing business, or purchasing new equipment or supplies in an existing business that they currently own but would like to expand upon in one or more ways. Women who may not otherwise qualify for a business loan through a bank or other financial institution can turn to Small Business Administration loans for women for assistance. It is important to keep in mind that Small Business Administration loans for women are not necessarily inexpensive loans. Interest rates tend to be at, or above, typical interest rates for commercial loans offered by other financial institutions and banks. In addition to this, there is a guaranty fee, typically 3 percent to 3.875 percent, based on the dollar amount of the guaranteed portion of the loan. Small

Business Administration loans for women also offer a longer amortization rate than most commercial loans offered through banks and financial institutions. Working capital loans can be financed for up to seven years. Fixed asset loans can be financed for up to ten years, and real estate or construction of a building for business can be financed for up to 25 years. Before applying for Small Business Administration loans for women, it's crucial that all "homework" is done. Check your credit scores. If there are marks on your credit report, work to resolve them. Prepare to explain anything that cannot be cleared up, and be honest. Create have a written summary of your business, as well as a summary listing everything that will be purchased should the loan be approved. If the business is already in existence, be prepared to show reports, bank statements, and receipts to verify that the loan payments can be made each month. For more information on what the Small Business Administration offers in your area, visit http://www.sba.gov/regions/states.html, and click on the state in which you reside or will operate your business. Information available includes financing information, disaster relief information, counseling and training resource, opportunities, a start-up kit, local resources, and other extremely valuable tools for business. About the author: Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women. Visit her site: Loans for Women http://loans.digital-women.com

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