Women entrepreneurs are driving a major shift in the economy, but despite employing millions of people and generating trillions of dollars, they face a number of challenges when it comes to financing their businesses. In particular, funding requests from female business owners are less likely to be approved in full compared with those of their male counterparts. To help level the playing field, there are a variety of resources and loans specifically designed for women owned businesses that can provide valuable assistance in securing financing.
In addition to the Small Business Administration’s 7(a) and Express Loan programs, women can also seek funding through their local community-based organizations. These resources, such as the National Association of Women Business Owners, the SCORE office, and the Women’s Business Centers, are able to provide advice and guidance in finding the right financing option for your business.
Other financing options include personal loans and credit union loans, which are available to both men and women. Many of these lending institutions have flexible programs that can offer lower APR’s than traditional commercial loans. However, they are typically limited in the amount of money you can borrow and will require a personal guarantee that will hold you personally responsible for repaying the debt if the business fails.
Another alternative is applying for a small business grant that is designed to help women-owned businesses. These grants often provide additional funding as well as mentorship and other resources to entice women to pursue their business goals. These programs can be found through state and local governments, the federal government, and large corporations that are interested in supporting women entrepreneurship. women owned business loans