According to Biz2Credit’s annual State of Women-Owned Small Business Finance Study, the average funded business loan for women-owned businesses was $57,097.
By comparison, the same study found the average size of a business loan for male entrepreneurs was $103,604, nearly double the amount that women entrepreneurs receive.
This is an obvious and concerning problem, especially when you consider women-owned businesses account for over 12.3 million U.S. companies alone. Additionally, these women-owned businesses generate $1.7 trillion in sales and employ roughly 9 million people.
Amongst all privately owned businesses, the ones that are majority owned by women contribute 8% of employment and 4.2% of revenues.
With women-owned companies being such an integral part of the U.S. economy, why are they having such difficulties securing sufficient funding that is more in line with what their male counterparts are receiving for their businesses?
While that question still needs a whole lot of answering, fortunately there are some small business financing programs and companies out there that cater specifically to women entrepreneurs to help bridge the gap.
LendEDU offers some insights on a couple of these initiatives.
作为一个成员,女性可以访问小普杜拉。布辛ess loans that start at $10,000. For these loans, repayment terms and interest rates will vary depending on amount and the applicant’s credit history.
In terms of finding a small business loan for women, KeyBank and its Key4Women program is a great place to start.
Women’s Economic Ventures
This program can provide either start-up or expansion loans to women-owned businesses; both options typically will come with fixed-interest rates and manageable repayment terms.
Through the Women’s Economic Ventures program, women entrepreneurs can access start-up loans that range from $250 to $25,000 or expansion loans that can be as much as $50,000.
The application process for this lending program works like a typical small business lender as applicants will need to provide theirfinancialdetails, in addition to the reasons they need a small business loan, and a decision usually will follow in the subsequent weeks.
Other Things to Consider
For women entrepreneurs in the market for a small business loan, there are a few things they need to consider.
First, they need to make sure all of their paperwork is in order before submitting any type of application. Things they may need include their business credit score, their own credit score, assets and liabilities of the business, annual revenue numbers, legal structure of the business, and reason they are applying for a loan.
Second, they could always consider companies and programs other than those two mentioned above. Some other reputable small business lenders include companies like Funding Circle, Lendio, and LendingClub.
Or, they could go the government route and look into SBA loans that are backed by the federal government. This could be a viable option because SBA loans need to meet certain parameters and are usually guaranteed.
In his role atLendEDU，Mike Brown使用数据，通常来自调查和公开的资源，以确定新兴个人财务趋势并讲述独特的故事。迈克的工作，在华尔街日报和华盛顿邮政等主要网点中，为消费者提供了个人金融测量棒，可以帮助他们做出明智的财务决策。
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Woman business owner stock photo by marvent/Shutterstock