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Women-owned businesses are on the rise.
As of 2024, women own more than 14 million businesses in the U.S., accounting for nearly 40% of all businesses, translating to over 14 million firms, and employ ~12.2 million workers while generating $2.7 trillion in revenue.
Yet despite this progress, accessing capital remains one of the biggest barriers for women business owners. Studies show that women-owned businesses are less likely to receive traditional loans or venture capital compared to male-owned firms, even though they’re starting businesses at faster rates.
This funding gap matters: greater access to small business loans and grants for women doesn’t just benefit entrepreneurs, it fuels local economies, helps businesses expand, and creates jobs.
In this 2025 guide, you’ll get:
- A fresh breakdown of grants for women-owned businesses
- Updated options for loans for women entrepreneurs
- A side-by-side comparison of grants vs. loans
- Tips to qualify and apply successfully
What are small business grants & loans?
For women-owned businesses, securing capital often comes down to two main paths: grants and loans. Both provide funding, but how they work and what they mean for your business long-term is very different. Understanding the basics will help you decide which option is the best fit for your goals.
How women’s business grants and loans work
Grants are funds that you don’t have to repay, but they’re usually tied to specific eligibility requirements (such as being a woman-owned business, operating in a certain industry, or pursuing social impact work). Competition can be fierce, and application processes can also be time-intensive. Loans on the other hand are borrowed funds that you must repay with interest. The upside is there is flexibility. These loans can be used for anything from purchasing equipment to expanding locations.
Pros and cons to both
| Grants | Loans | |
|---|---|---|
| Pros | Funds without repayment | Flexible use of funds, faster access to larger amounts, and helps build business credit |
| Cons | Highly competitive, restrictive eligibility, and lengthy application process | Funds are repaid with interest, approval can be difficult, and may require collateral |
Top grants for women business owners in 2025
Federal and state grants
- SBA grant Programs: While the SBA itself doesn’t give direct small business grants, it funds initiatives like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which are open to women-owned businesses in tech and research.
- State-level economic development grants: Many states offer grant programs designed to encourage entrepreneurship, especially for underrepresented groups. Check your state’s Department of Commerce or Economic Development office.
Private and nonprofit grants
- Amber grant foundation: Awards $10,000 monthly to women-owned businesses, plus a $25,000 annual prize.
- Cartier women’s initiative: Provides up to $100,000 in prize funding, plus mentorship and networking opportunities for high-potential women entrepreneurs worldwide.
Industry-specific grants
- Women and minorities in STEM (WAMS): This program supports research and outreach projects to increase participating of rural women and minorities in STEM fields relevant to agriculture.
- FAIRE small business grant: A grant for newly launched retail and product businesses.
- HerRise micro grant: Offers $1,000 micro grants monthly to women business owners (51% women-owned businesses, less than $1 million in revenue)
Top loans for women business owners in 2025
- SBA 7(a) program and microloans: This program remains one of the most accessible paths for women entrepreneurs, with loans up to $5 million. SBA microloans (up to $50,000) are also popular with startups and smaller businesses.
- Community development financial institutions (CDFIs) & credit unions: CDFIs are mission-driven lenders with a track record of supporting underserved business owners, including women. They can often offer more flexible terms and community support than traditional banks.
- Traditional bank loans and online lenders: Although women-owned businesses historically receive fewer approvals for traditional bank loans, some banking institutions still have women-focused initiatives. Online lenders like Square Loans can provide faster, more tailored options for women-owned small businesses.
Grants vs. loans: Which is right for your business?
When exploring small business grants for women and business loans for women business owners, it’s important to understand how each option fits into your growth strategy. While both can provide critical funding, they serve different needs.
| Feature | Grants for Women-Owned Businesses | Small Business Loans for Women |
|---|---|---|
| Repayment | No repayment required | Must be repaid with interest |
| Eligibility | Often specific to industry, impact, or ownership % | Could be based on credit score, revenue, collateral, and time in business |
| Competition | Competitive, limited funding pools | Higher approval odds if financially prepared |
| Flexibility | Restricted use of funds, defined by grant terms | Funds can be used for almost any business purpose |
| Timeline | Possibly longer application and review process | Possibly faster approvals |
What problems do women business owners face when it comes to funding?
Women-owned businesses continue to face a funding divide despite strides in growth. In 2024, only 36% of loan applications from women-owned businesses were approved, though this was an improvement over 35% in 2023.
These challenges stem from several structural and perceptual barriers:
- Collateral and credit constraints: Women entrepreneurs often have less access to collateral or long credit histories, making it harder to meet lender requirements.
- Investor bias and underrepresentation: Funding decisions may be influenced, consciously or unconsciously, by gender bias, especially when women are underrepresented among decision-makers.
- Reluctance to apply: Because of past experiences or anticipation of rejection, some women avoid applying for funding altogether, narrowing their access even further.
How to qualify for women’s small business funding?
Whether you’re pursuing small business grants for women or applying for SBA loans for women, knowing the eligibility requirements upfront will save time and improve your chances of success.
Common eligibility requirements for women-owned business grants:
- Must be a majority women-owned business (at least 51% ownership).
- Many grants require your company to fit specific criteria, such as:
- Industry focus (e.g., STEM, agriculture, retail).
- Social or community impact.
- Business stage (startup vs. growth).
- Applicants are often asked to provide a mission statement, financial need statement, or proof of business registration.
Common eligibility requirements for loans:
- A solid credit score (typically 620+ for SBA loans, though requirements vary).
- Proof of consistent business revenue or cash flow.
- For SBA loans, at least two years in business is often preferred, though microloans may be more flexible.
- Some lenders require collateral, such as equipment or real estate.
Documents you’ll need:
- Business plan or pitch deck.
- Proof of ownership.
- Business license and registrations.
- Tax returns (business and sometimes personal).
- Financial statements (profit and loss, cash flow, etc.).
- Bank statements (usually last 3–6 months).
Luckily, traditional banks aren’t the only avenue for small business owners to secure funding.
Square Loans provides access to small business loans — the average size of a loan through Square Loans is $6,000. And the ability to repay as a percentage of daily card sales works with the cash-flow needs of small businesses; you pay more when you’re busy and less if things slow down.
With Square Loans, the application process takes just a few clicks, and upon approval, funds can be transferred into a borrower’s bank account in as little as one business day.
Tips for applying for a grant to how to apply for grants and loans as a woman-owned business
Applying for funding can feel daunting, but breaking it into steps makes the process manageable. Whether you’re targeting women-owned business grants or applying for small business loans for women, preparation is key.
Step-by-step application process
- Research funding opportunities: Start with databases like Grants.gov or private grants. For loans, check the SBA’s Lender Match tool or trusted online lenders or traditional banks.
- Check eligibility requirements: Confirm you meet ownership, revenue, or industry specific criteria before applying.
- Gather documents: You may need to gather tax returns, business licenses, financial statements, or proof of majority woman ownership.
- Write a strong application or proposal
- Submit and track your application: Stay organized by creating a calendar of submission deadlines and follow up dates.
Resources for women-owned businesses
Finding the right support network can make all the difference. Beyond small business loans and grants for women, there are organizations and programs designed to provide mentorship, education, and connections that help women entrepreneurs succeed.
Women’s Business Centers (WBCs)
The SBA supports nearly 150 Women’s Business Centers across the U.S. These centers provide training, business counseling, and help navigating funding options. Some WBCs can also assist directly with loan packaging and applications.
SBA Office of Women’s Business Ownership (OWBO)
The OWBO works to ensure women entrepreneurs have access to resources for growth. Through its programs, you can access SBA loan guidance, federal contracting opportunities, and specialized training programs.
Networking and mentorship programs
- National Association of Women Business Owners (NAWBO): A dues-based organization offering advocacy, education, and networking opportunities for women across industries.
- U.S. Women’s Chamber of Commerce (USWCC): Focused on increasing economic growth opportunities for women, including federal contracting certification.
- SCORE mentors: A nationwide network of volunteer business mentors (and an SBA partner) offering free one-on-one counseling and low-cost workshops.
- IFundWomen community: Provides not just grants but also a collaborative platform where women founders can connect with peers, coaches, and funding opportunities.
Getting funding doesn’t have to be a headache. With improved access to capital, through online lending sources like Square Loans, grants, and sponsorships, women can knock their business goals out of the park.
