The number of women-owned small businesses has increased steadily over the past decade, but funding remains an obstacle. According to online credit resource Biz2Credit, 25 percent of business loan applications from women-owned businesses were denied in 2022 compared to 19 percent of those from men-owned companies. However, financing options are available to help female entrepreneurs get their startups off the ground and thrive.
Startup business loans for women can be found in a variety of sources, from traditional banks to crowdfunding websites. Oftentimes, these programs are not specifically tailored to women-owned businesses, so it’s important for entrepreneurs to carefully review the lender or grant program’s reputation and offerings before applying. For example, many of these funding programs require personal guarantees and are best suited for those with excellent credit and significant business experience.
Another option is to check with local financial institutions that offer initiatives to support women-owned businesses. Many of these institutions publicize their efforts, and smaller community banks or credit unions may focus on supporting local entrepreneurs and businesses.
In addition to startup business loans for women, there are also a number of other financing options, including business grants and equity financing. Unlike a loan, a grant does not need to be repaid. In some cases, women-focused business grants may be offered by government agencies, universities or private foundations, while others are part of a larger network like WomensNet’s Amber Grant, named in memory of 19-year-old entrepreneur Amber Wigdahl. business loans women