Business Loans For Women
Women business owners continue to face unique challenges when seeking business loans. Biz2Credit has helped hundreds of women secure business loans to pay off unwanted debt, improve or expand their business, purchase inventory and equipment, meet seasonality challenges, and fund operating expenses.
At Biz2Credit, Women business owners complete one application to get matched with multiple custom business loan products ranging from $500 - $5 million.
Female business owners continue to face unique challenges when applying for loans for business. Small business loan approval rates are 15% -20% lower for women-owned companies than they are for businesses owned by men. Additionally, revenue and credit scores are lower and operating costs are higher for women.
Despite these challenges, the number of businesses owned by women continues to grow. Revenue and credit scores tend to be lower for women, while operating costs are generally higher.
Women-owned companies employ almost 9 million employees and are one of the fastest growing segments of the small business community.
Biz2Credit's platform makes available many types of financing for women. Our platform consists of extensive network of funding sources and partners who are willing to provide loans for women business owners. These lenders range from traditional banks with loan programs for women business owners to the SBA and community microlenders.
A History of Success Securing Small Business Loans For WomenWe have helped hundreds of women secure business loans to pay off unwanted debt, improve or expand their business, purchase inventory and equipment, meet seasonality challenges, and fund operating expenses.
"With the small business loan I got through Biz2Credit, I was able to build my store, get inventory in here, and train my staff. Of course I would recommend Biz2Credit. They were very easy to work with and the process was seamless. They find the best banks to work with you."
"Biz2Credit saved the day and 48 hours later, I had the keys to my new fitness studio in my hand. I don't know how Joe did what he did for me, but I'm thankful for his help. He even got me an easy repayment schedule."
Facts and Figures About Small Business Loans and Women owned Business
- Generally counted as firms with fewer than 500 employees
- Represent 99% of all employer firms
- Provide jobs for over half of the nation's private workforce and have generated nearly two-thirds of the new jobs over the past 15 years
- Pay 44% of total U.S. private payroll and comprise 97% of all U.S. exporters (source: SBA Office of Advocacy's Research and Statistics)
Women-Owned Small Businesses
- Nearly one-quarter of new registrants on Biz2Credit were women-owned businesses
- More than 11.3 million businesses - or 37% of all small business enterprises - are now owned by women.
The top five states with the highest number of women-owned firms as of 2016 are:
- New York
The top metropolitan areas by number of women-owned firms as of 2016 are:
- New York City
- Los Angeles
Small Business Lending Statistics
- Outstanding loans to small businesses are estimated to be in excess of $1 trillion dollars.
- It typically takes business owners a minimum of 3-6 months to get an SBA loan from bank.
- Small business owners typically go to 5 or 6 banks before they are able to secure some type of financing
- According to industry sources, business owners spend anywhere from $2,000 - $20,000 to get loans -- either on their own through business brokers -- and are often rejected by banks
- Big banks -- institutions with $10 billion+ in assets -- reject about 8 out of 10 the loan applications they get (source: Biz2Credit Small Business Lending Index)
- Community banks, regional banks, and other smaller lenders typically approve about half of the small business loan applications they receive (Biz2Credit Small Business Lending Index)
- Banks spend an estimated 9-10% of their small business lending revenue to acquire new small business customers (source: industry reports)
- Business borrowers pay about 1% in loan processing fees (source: industry reports)
- It typically takes business owners 3-4 weeks to get a loan through Biz2Credit
- After having been initially rejected for loans, 40% of the small business owners who use Biz2Credit's BizAnalyzer to increase their credit scores and improve their chance of getting a loan are able to secure funding within 3-4 months. The statistics are similar for business loans for women.
- Businesses secure funding at a 74% approval rate when they use Biz2Credit case managers
Annual Revenues, Profits of Women-Owned Businesses Leaped in 2016, According to Biz2Credit Study
Study of 25,000 Companies Finds Average Annual Earnings Climbed 47 Percent,
Average Annual Earnings Jumped 61 Percent in a Year-to-Year Comparison
Average Annual Revenues of women-owned business rose to $210,000 in 2016, an improvement of 47% from $142,804 in 2015.
In comparison, businesses owned by men generated about 73 percent more revenue ($363,414) on average than women-owned businesses in 2016.
"Overall, the figures show that 2016 was a strong year for small businesses -- revenues were up significantly. However, there is still a large gap between the sales of male-owned and female-owned companies," explained Rohit Arora, CEO of Biz2Credit, who oversaw the research. "It is encouraging that women entrepreneurs are acquiring credit at nearly the same dollar amount of their male counterparts. This indicates a commitment to growth of their companies." Rohit Arora, CEO of Biz2Credit
WHAT ARE THE MOST POPULAR BUSINESS LOANS FOR WOMEN? HERE ARE THE TOP 4 FOR 2019:
The Small Business Administration has a comprehensive offering of resources for female entrepreneurs. Below, we will talk about the various loan and grant program resources offered for women business owners by the SBA.
SBA loans are technically loans guaranteed by the government and given out by financial institutions. That means lenders face less risk lending to you, and you qualify for better loan options than you would otherwise. SBA loans are great financing options for those who can qualify-you'll get low-rate and long-term financing.
Term loans are the most common type of small business loan. A borrower receives a lump sum cash amount that they pay back, plus interest, over a fixed amount of time. These are loans for businesses that are usually associated with banks. Many alternative lenders such as Biz2credit and others now offer low-rate, long-term financing and do so at a much faster time to funding.
Short-term loans are often an ideal solution for small business loans for women owners who only need a small amount of capital, with a short repayment window.
Short-term loans usually are repaid within 3 and 18 months, and loan amounts can be anywhere from $2,500 to $250,000. Short-term loans are also great options if you don't have strong credit or have only been in business for short amount of time.
Business Lines of Credit
Many women business owners seeking a loan also consider a business line of credit.
Business Lines of Credit can help bridge the gap during seasonal lulls and other lean periods. A business line of credit can ensure that you always have the capital you need, when you need it.
Top 9 Business Grant and Support Programs For Woman-owned Businesses
1. InnovateHER Challenge
InnovateHER provides an opportunity for entrepreneurs throughout the U.S. to showcase products and services that have a measurable impact on the lives of women and families (30%), have the potential for commercialization (40%), and fill a need in the marketplace (30%).
The U.S. Small Business Administration hosts an annual competition for businesses with a marketable product or service that positively affects women's lives. To participate, you must first enter and win a local InnovateHER Challenge to advance to the national semifinal round. The top three national finalists will win $40,000, $20,000 and $10,000, respectively.
2. Small Business Innovation Research and Small Business Technology Transfer programs (SBIR)
The mission of the SBIR program is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy (Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons).
The SBA facilitates these two competitive programs, which ultimately provide grants to small businesses that contribute to federal research and development. Eleven federal agencies, including the departments of Agriculture, Defense, and Health and Human Services, post grant opportunities on their websites.
3. State and local small-business grants
As a general statement, there are no formal grants on the federal level specifically targeted towards women only. However, there are many grants at the state and municipal levels. These programs are very competitive and time-intensive, here are a few resources to assist in your search.
4. Women's Business Centers
The SBA sponsors about 100 Women's Business Centers nationwide, designed to help women entrepreneurs with business development and access to capital. Some, such as the California Capital Financial Development Corp., lend money directly, while others simply help you find small-business grants and loans that you may qualify for.
5. Economic development agencies
Every state and many cities have economic development agencies focused on promoting a strong local economy. Even if the agency itself doesn't offer a small-business grant, it will likely be able to point you in the right direction.
6. Small Business Development Centers
There are hundreds of these SBA-sponsored centers around the country, typically housed at colleges and universities. SBDCs offer free, one-on-one business consulting. Set up a meeting with your local SBDC advisor, who will be able to tell you about grants and other business financing opportunities in your area.
Private small-business grants for women
Some private organizations and businesses have created national grant programs for women small-business owners. Here are two to look into:
7. Amber Grant
The Amber Grant Foundation awards $500 to a different women-owned business every month. At the end of each year, one of the 12 grant winners is awarded an additional $2,000. The application is relatively simple: Explain what your business is, describe what you'd do with the grant money and pay a $7 application fee. The foundation's advisory board chooses the winners, looking for women with passion and a good story.
8. Eileen Fisher Women-Owned Business Grant
Eileen Fisher, a women's clothing retailer, awards $100,000 to up to 10 women business owners each year. The EILEEN FISHER Women-Owned Business Grant supports innovative, women-owned companies that are beyond the start-up phase and ready to expand their business and their potential for positive social and environmental impact. To be eligible, women must make up at least 51% of your business's ownership and leadership, your business must have been in operation for at least three years, it must not exceed $1 million in annual revenue, and it must be focused on environmental or social change.
(The following grant is not specifically for women, but worth considering:)
9. FedEx Small Business Grant
FedEx awards up to $25,000 apiece to 10 small businesses annually. The application requires an explanation of your business, how you'd use the money, photos of your business and - this part is optional - a short video explaining your business. You don't need a FedEx account to apply.