Starting and running a successful business is not particularly easy as it requires grit, determination, confidence, and skill. One major determinant of the success of any business is funding. Unfortunately, women are not particularly favored in the highly-competitive business environment in the 21st-century as they find it difficult to start and fund their business.
Some of the identified reasons for the difficulty in getting financing for women entrepreneurs include including bias (both unconscious and overt) and women’s inaccessibility to the information and tools they need to get the funds they require.
Statistics reveal that the 11.6 million businesses women own account for 39% of all U.S. companies, employing 9 million people and generating $1.7 trillion in revenue each year. Despite these amazing figures, there is still a lot of room for improvement and growth toward equality between female and male business owners particularly in the area of funding.
For businesses looking for how to find loans for women, below are some of the best business loans for women entrepreneurs.
Loans From the Small Business Administration (SBA)
The SBA, through partnerships with financial firms, offers a number of small business loans for women.
Loans from a Local Female-centered Group in Your Region
Many states have local groups that are dedicated to supporting women-owned businesses. Under this program, new businesses can secure between $250 and $25,000 if they are approved while businesses that have been open for at least 18 months can qualify for up to $50,000 in financing.
Loans from Traditional Banking Institutions
While men are more likely to secure financing from traditional financial institutions, banks still do lend money to women-owned businesses.
Peer-to-peer Business Loans
P2P lenders act as a bridge between small business owners who need money and banks and investors who are willing to lend it.
Other popular financing options for women business owners are Bootstrapping, Crowdfunding, Selling Equity to Investors, Merchant Cash Advance, Business Lines of Credit, and Invoice Factoring.