WomenVenture is U.S. Small Business Administration (SBA), Community Development Financial Institution (CDFI), and Minnesota Department of Employment & Economic Development (DEED) lender serving Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Sibley, Washington, and Wright Counties in Minnesota and Pierce and St. Croix Counties in Wisconsin.
Loans from WomenVenture can be used to help start or grow your business. Eligible uses of loan funds include (but are not limited to):
- Leasehold improvements
- Additions, alterations, remodeling, or renovations to your rented space
- Inventory and supplies
- Machinery or equipment purchases
- Working capital
- Debt refinancing
- Payroll
Small Business Loans
WomenVenture’s lending program is designed to support you on your entrepreneurial journey. We conduct a comprehensive review of your business’ profitability, sustainability, and the financial stability of the business and the owners to assess the ability to repay the loan. Our lending program offers small business loans up to $100,000 to qualified applicants.
Loan Features
• No application fee
• Fixed interest rates
• Monthly repayment – for up to 6 years
• No pre-payment penalty
• One-time origination fee, plus closing costs
• Access to WomenVenture’s Business Consulting program for the duration of your loan
Traditional Term Loan
The small business term loan includes fixed monthly payments that includes an allocation towards both the principal balance and accrued interest until the loan is repaid in full. The product is designed to provide a lump sum of capital that is available for both start-up and established businesses with a clear plan for using the funds to launch, grow, or improve their operations.
Revolving Line of Credit
The small business revolving line of credit is designed for short-term financing needs and is best utilized as a cost-effective option for managing cash flow fluctuations and covering short-term expenses.
The Revolving Line of Credit offers business owners an opportunity to borrow funds as required, up to a predetermined credit limit. Interest is charged for 11 months with the full remaining principal balance due in the 12th month. During this period, as borrowed funds are repaid, the credit becomes available again, operating under a revolving structure like a credit card. Renewal options may be available annually, contingent upon meeting underwriting criteria including creditworthiness, business profitability, cash flow, financial management, and loan performance.
The Revolving Line of Credit serves as an economical solution for managing cash flow fluctuations and addressing short-term expenses effectively. Small businesses frequently leverage this tool to handle working capital requirements, finance inventory purchases, bridge seasonal cash flow gaps, support marketing initiatives, or capitalize on growth prospects.
Wondering if you’re eligible to apply for a loan with WomenVenture?
Please answer these questions to the best of your ability for the most accurate results. WomenVenture offers support such as training and business consulting to assist you in getting lender ready if it is determined you are not yet ready to apply for a loan. Please reach out to us at lending@womenventure.org with any questions.
Questions?
We’d love to talk with you about our loan program! Contact us at lending@womenventure.org
For more information on how to prepare and submit your application, visit our Preparing Your Application page.
“WomenVenture provided me with an initial loan which supported me in getting my business off the ground. It allowed me to invest in creating my website and hiring team members.”
– Elizabeth Summers, Elizabeth Summers Wellness LLC
Frequently Asked Questions
How does the loan application process work?
After completing and submitting the initial eligibility questionnaire, you will receive a confirmation email within 3 business days with an invitation to continue with the loan application process. Once you have completed the Pre-Application portion of the loan application, a member of the WomenVenture Lending Team will reach out to you to answer any questions, discuss next steps, and guide you through the process.
A complete application package includes information and documents related to your personal and business finances to help us understand your specific business situation.
Your application will be reviewed to determine approval of your financing request. It’s important to note that approval of a loan request is not guaranteed.
How long does the loan application process take?
Once your application is complete, approval and funding typically take up to 90 days. Please note that several factors can influence this timeline, so it’s crucial to be compliant, responsive, and prompt in providing the requested information and documentation.
How much should I apply for?
When deciding how much to apply for, evaluate the following:
• Use of Funds: What are the loan funds needed for specifically, and evaluate the actual costs
• Business Expenses: Review your current and projected expenses to ensure coverage without strain
• Growth Plans: Consider how the loan will support business expansion
• Contingency Planning: Consider planning for unexpected expenses or changes in revenue
• Repayment Capacity- Ensure that monthly payments, including interest and principal, are comfortably within your budget and other business expenses.
Click here to check out a monthly payment calculator.
What if I don’t qualify?
If you don’t qualify for a loan with WomenVenture at this time, your dedicated Loan Officer will provide you with resources to assist you in improving your business, credit, and financial situation so that you have an improved chance of approval on your next application. We invite and encourage you to reapply after three to six months as your situation improves.
Are WomenVenture loans guaranteed by my personal or business credit?
WomenVenture Loans always require personal guarantees from all owners holding a 20% or higher ownership interest in the business.
Can I get a loan if I have a low credit score?
WomenVenture welcomes individuals with all credit scores to apply so that we can discuss your unique situation. The loan approval process includes a comprehensive credit evaluation to assess your ability to repay the loan.
Your credit score influences loan terms such as:
• Interest Rates: Higher scores generally qualify for lower rates.
• Loan Amounts: A higher score may allow you to borrow more.
• Approval Likelihood: Lower scores may require stronger compensating factors, such as collateral or a co-signer.
What is collateral and why do I need it?
Collateral serves as security that you pledge to WomenVenture for the repayment of your loan. In the event of default, this collateral is forfeited to the lender.
WomenVenture does not offer unsecured loans and requires all business owners holding an ownership interest of 20% or higher to sign on as personal guarantors for the loan. Additionally, WomenVenture will file UCC liens on all business assets.
Further collateral requirements may apply depending on factors identified during the review and processing of your individual loan application. For instance, a candidate may use their vehicle as collateral or agree to pledge real estate, allowing a lien to be placed on their property to secure a loan from WomenVenture. In the event of non-repayment, WomenVenture has legal rights to the collateral.
However, WomenVenture makes every effort to work with our clients to find mutually agreed-upon solutions before resorting to legal recourse in cases of hardship. If you have questions regarding collateral, we encourage you to reach out to a WomenVenture loan officer to request a consultation.
Can I get a loan for my nonprofit business?
WomenVenture does not serve nonprofit businesses.
Does my business have to be woman-owned to receive a loan?
WomenVenture focuses on serving women because women face greater barriers in accessing financing from traditional lenders. However, we can lend to anyone with a business that demonstrates the potential to be profitable, regardless of ownership structure or gender.
I’m not in business yet. Can I still apply for a loan?
We welcome loan applications from start-up businesses. The strongest candidates will have experience in their industry, some entrepreneurial training, a thorough business plan, and 2 years of financial projections. To strengthen your application, we encourage business owners with limited entrepreneurial experience to go through our training courses before applying for funding.
What makes WomenVenture different from traditional banks that offer small business loans?
WomenVenture is a nonprofit, Community Development Financial Institution (CDFI), and Women’s Business Center. Our mission is to empower women to achieve their economic goals by building profitable and sustainable businesses that transform communities.
We are often able to lend to small business owners who have trouble securing business funding through traditional lending options.
Are you currently a WomenVenture lending client? Click here to access the loan portal to make loan payments, view payment history and change bank accounts.