The number of women-owned businesses in the United States is on the rise. However, many female entrepreneurs struggle to secure business funding from traditional sources, especially when compared to their male counterparts. Fortunately, more organizations are stepping up to meet the needs of female entrepreneurs with specific business loan programs and resources. In addition to traditional banks and credit unions, these resources include the Small Business Administration, nonprofits and online lenders.
There are a variety of different types of business loans available for women, including microloans and term loans. For example, microloans offer up to $50,000 in funding with low interest rates. In contrast, term loans provide a lump sum of cash that must be paid back in a certain amount of time, such as three to 18 months.
Other forms of business financing for women include crowdfunding, personal loans and lines of credit. Depending on the type of financing needed, it may be beneficial to work with an organization that can guide you through the process and help you find the best option. For example, Accompany Capital is a New York-based business accelerator that provides women with startup funding, classes, workshops, extensive one-on-one consulting and mentoring.
Grants are another good source of business funding for women, as they don’t require repayment. Government and nonprofit organizations provide a variety of these grants, which can be used for things like start-up costs or business management training. It’s worth checking with your local chamber of commerce and industry-specific groups to see what options are available in your area. business loans for women