Women are historically “below” men in the business world. Whether in pay, landing contracts, or some other aspect, small businesses owned by women are at a definite disadvantage due simply to our culture. Nowadays however, the playing field has been leveled, with benefits available only to woman owned small businesses that help them prosper and grow. There are now all types of business loans for women, including startup business loans for women.
While there are no specific government business loans for women since the government does not lend funds directly, the government agency designed to help small businesses, the Small Business Administration (SBA), does work with certain lenders by securing loans specifically for women in small business. They also over official designation as a Woman-Owned Small Business, or WOSB.
What is Woman Owned Small Business (WOSB) Designation?
Any business that is owned and controlled at least 51% by a woman or women can apply for designation as a WOSB. In addition, the woman or women must be U.S. citizens, and the business must be designated as “small” by SBA standards.
What are the Benefits of Becoming and Official WOSB?
The greatest benefit is eligibility for special “set asides.” A certain number of government contracts must go to WOSBs. With WOSB designation, a business is eligible for government set asides as a part of this plan. In addition, designated woman-owned companies may find it easier to obtain business loans for women.
Use it to Your Advantage
Be certain you go after contracts other than government set asides. Strive to be better and market toward other customers so that government set asides do not become your only or largest contracts. Other contracts ensure success despite what happens with set asides at each budget cycle.
Biz2Credit has a network of over 1,200 lenders, many of which offer business and startup loans for women. Get started by filling out a simple form, and we will connect you with lenders and products perfect for your situation. Visit Biz2Credit.com today for more information.