Two out of every 10 small businesses in the United States are women-led, creating trillions of dollars and employing millions of people. These business owners also face a number of challenges when it comes to financing, which can hinder their growth and potential for success. While there are no loan programs that are exclusively for women, some sources of funding are more receptive to female-led companies than others.
The most common type of financing is debt financing. This includes loans, lines of credit and other forms of financing that require repayment over a set period of time. While these types of loans are often easier to obtain for established businesses with strong financials and a solid credit profile, they can be difficult for newer startups to qualify for.
Alternative forms of financing include microloans, equipment financing and other forms of lending that don’t require repayment. While these options are typically less lucrative, they can be a good way to fund your small business for women without the need to provide collateral or have an exceptional credit score.
Finally, securing funding for women entrepreneurs is possible through federal and state small business grant programs that offer financial support without the need to repay the funds. These grants and development programs are designed to foster economic growth in specific communities and may be available through your local chamber of commerce, community foundation or other organization. To learn more about your funding options, visit the Small Business Administration’s website. The agency offers several programs that can help female entrepreneurs, including the 7(a) and Express Loans. women in business loans