How Women Entrepreneurs Are Leveraging SBA 7(a) Loans for Growth

In recent years, women entrepreneurs have increasingly turned to the Small Business Administration (SBA) 7(a) loan program to grow their businesses and bridge the gender-based funding gap. SBA 7(a) loans, with their favorable terms and flexibility, have become a powerful tool in empowering women to overcome financial hurdles and scale their ventures. By analyzing data through LenderAI Insights and other sources, we explored how SBA 7(a) loans are driving the growth of women-owned businesses, and the impact these loans have on job creation and local economic development.

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The Role of SBA 7(a) Loans for Women Entrepreneurs

Across the U.S., women entrepreneurs face unique challenges when it comes to accessing capital. Despite owning 14.5 million businesses and accounting for 39.2% of all firms, women continue to experience lower approval rates and limited access to traditional funding. SBA 7(a) loans are helping to bridge this gap, providing affordable financing solutions that are key to the success of women-owned businesses.  

These loans provide affordable financing with longer repayment terms and lower interest rates than traditional bank loans, making them particularly attractive for women entrepreneurs looking to expand their businesses. They are used for various purposes, such as working capital, equipment purchases, business acquisitions, and real estate investments. The flexibility of SBA 7(a) loans ensures that women can get the financing that suits their unique business needs.

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SBA Lending Data: Loans Approved for Women Entrepreneurs

Over the past few years, SBA 7(a) loans for women-owned businesses have seen significant growth. Out of the $31.1 billion in SBA(7a) loans funded in FY2024, $5 billion of those loans were approved for women entrepreneurs, highlighting the increasing popularity of this funding tool as a key resource for women looking to scale their businesses.  

FY2024 also saw the highest approval count and the second-highest share of funding for women entrepreneurs since 2019—representing 15.6% of the total SBA 7(a) funding. This makes it a standout year in SBA lending for women, highlighting the growing impact of these loans on supporting women in business.

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Regional Trends and Top States for Women-Owned Businesses

Where is highest concentration of women entrepreneurs in the USA? Unsurprisingly, California leads the ranks, with over 1.8 million women-owned businesses generating an impressive $361.9 billion in revenue and employing 1.7 million people. The states of Florida (1.15 million), Texas (1.04 million), and New York (929,000) follow closely behind in terms of the number of women-owned businesses.

However, when examining regions where SBA loans for women entrepreneurs are growing, the list extends beyond the usual suspects. Regional trends in the Southeast show a strong presence of women-owned businesses, particularly in areas such as the DMV (D.C., Maryland, Virginia), Charlotte, Tampa, Miami, Jacksonville, and Baltimore, all ranking among the top ten Metropolitan Statistical Areas (MSAs) for women-owned businesses nationwide.  

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Job Creation Impact: SBA 7(a) Loans Drive Economic Growth

Let’s talk about impact. When entrepreneurs succeed, the benefits ripple through entire communities. SBA 7(a) loans are more than just a financial tool—they’re a catalyst for job creation and local economic growth. As women grow their businesses with the help of SBA loans, they’re creating jobs not just for themselves, but for their communities. In 2024, women-owned businesses employed approximately 12.9 million people and generated around $3.3 trillion in revenue.

Data shows that women-owned businesses receiving SBA loans have been key players in creating thousands of new jobs, contributing to lower unemployment rates, and helping boost local economies. Every loan that goes to a woman-owned business is more than just an investment in one company—it’s an investment in the long-term health and growth of the entire community.

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Challenges Women Entrepreneurs Face in Accessing SBA Loans

Despite efforts to bridge the funding gap, women entrepreneurs continue to receive a smaller share of SBA loan funding compared to their male counterparts. In fiscal year 2024, women-owned businesses received approximately 14,607 SBA 7(a) loan approvals totaling around $4.8 billion, while male-owned businesses secured about 48,889 approvals amounting to approximately $22.9 billion.

These statistics highlight the ongoing need for targeted initiatives to ensure equitable access to SBA financing for women entrepreneurs, enabling them to fully realize their business growth potential.

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Resources for Women Business Owners

There are numerous resources that collectively support women in different stages of their entrepreneurial journeys, from mentorship and funding to business growth and networking. We’ve listed below just a few programs that aim to support female entrepreneurs:  

SBA Counseling, Mentorship, and Training Programs: The Small Business Administration (SBA) offers various programs to provide guidance and education to women entrepreneurs, helping them navigate the challenges of running a business.

Women’s Business Centers (WBCs): These centers provide specialized services, including business planning assistance, marketing strategies, and financial guidance tailored to women entrepreneurs.

Office of Women's Business Ownership (OWBO): Part of the SBA, OWBO specifically supports women entrepreneurs by providing access to funding opportunities, advocacy, and resources. The office aims to help women start and grow their businesses, offering programs that empower them with the skills and support needed to succeed in a competitive marketplace.

National Association of Women Business Owners (NAWBO): This organization provides networking opportunities, advocacy, and resources to help women business owners connect, grow, and thrive.

The Cartier Women's Initiative: This global program offers funding, coaching, and networking opportunities to women entrepreneurs who are making an impact in their industries.

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Key Takeaways for Lenders

• Banks and SBA lenders can support inclusive economic growth while expanding their SBA loan portfolio to include more women-owned businesses.  

• A growing trend of women entrepreneurs provides opportunities for lenders and banks to create a more tailored SBA 7(a) lending solutions for this specific segment.

• Lenders can bridge funding gaps through targeted outreach, educational programs, and mentorship opportunities.

Key Takeaways for Entrepreneurs

• SBA 7(a) loans offer lower interest rates and longer repayment terms, making it easier for women-owned businesses to secure affordable financing for growth.  

• In FY2024, $5 billion in SBA 7(a) loans were approved for women entrepreneurs, marking 15.6% of total SBA 7(a) funding, a growing trend that demonstrates increasing support for women-owned businesses.

• By utilizing SBA 7(a) loans, entrepreneurs can bridge funding gaps, invest in new opportunities, and take advantage of valuable resources such as mentorship and training programs.

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Conclusion  

SBA 7(a) loans represent a vital tool for empowering women entrepreneurs, enabling them to overcome barriers to capital access, drive economic growth, and create jobs. By understanding and addressing the specific challenges women face in obtaining financing, lenders can help foster a more inclusive and thriving entrepreneurial ecosystem.

Create or log in to your free LenderAI Insights account today to identify and act on opportunities in SBA lending for women entrepreneurs. By leveraging data-driven insights, you can better understand market trends, enhance your outreach, and tailor loan offerings to meet the unique needs of women business owners.

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*Note: All data and findings are accurate as of March 4, 2025. Amounts may fluctuate in real time as new data becomes available.

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