Whether you’re starting a new business or seeking additional capital to grow your existing company, it’s important for women-led companies to know the best financing options available. In the United States, there are many different lenders who provide loans for women owned business. Some are specifically focused on providing small-business loans to women, while others offer a wider variety of financing solutions like business lines of credit and microloans.
It’s also worth noting that even though women-led businesses are less likely to receive loan funding than those led by men, they still generate trillions of dollars per year and create thousands of jobs. In addition to traditional lenders, there are numerous resources for women-led businesses, including government agencies, nonprofit organizations and industry-specific communities.
Women-led companies should start their search for financing with the Small Business Administration (SBA). Its suite of business loans includes the microloan program, which lends up to $50,000 for startups and micro-businesses, and the 7(a) loan program, which offers general-purpose working capital for established small businesses. In addition, the SBA’s Community Advantage program provides a more flexible qualification process than the standard 7(a) loan program and may be an option for women-led companies.
Another possibility for financing is through a private equity or venture capital firm that specializes in investing in female-led companies. While these firms are typically more difficult to find than a bank or an online lender, they can provide larger amounts of funding and longer-terms than traditional lenders.