Thianchai sitthikongsak/gettyimages;Illustrated by Hunter Newton/Bankrate
As of 2024, more than 14 million women own businesses in the United States, according to a study by the National Women’s Business Council. This accounts for 39.1% of all US companies. But starting a business is not an easy feat, and you need funds to start and run any business. Women have more problems than men seeking business funding. 25% of women were rejected in 2022, and 19% of businesses owned by men were rejected.
Women can pursue all the loan options available to them to obtain the funds they need to run a successful business. There are many business loans available specifically for female entrepreneurs, including crowdfunding, small business management (SBA) loans, and grants both local and nationally.
Female Entrepreneur Statistics
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The federal government aims to kick out 5% of all federal governments that contract SBA funds to women-owned small businesses each year.
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Since 2020, 13% of women of color have received less business-related financial support from banks or institutions than men.
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Women of colour were denied business-related relief funds two or three times than white and male business owners.
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The $5.6 billion microloan is awarded to companies owned by the majority of women by lenders working for SBAs.
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In 2021, the Covid-19 pandemic saw a 38.3% decline in total sales of women-owned companies.
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Over 60% of women are seeking funding to meet operating expenses.
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In 2024, 20.8% of federal SBA 7(a) loan funds were awarded to more than 50% of women-owned companies.
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Owned by a white woman: 1,031,429
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Owned by Hispanic women: 103,793
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Owned by 62,952 Black or African American women
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Owned by Asian women: 184,689
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American Indians and Alaska Native Americans Owned by Women: 14,590
Where to get startup funding as a woman-owned business
For many people, starting is the most difficult part Financing a startup or business venture. Thankfully, there are many ways to start a business with your feet off the ground.
Crowdfunding
According to the National Women’s Business Council, women are 9% more successful in crowdfunding than men. This popular alternative financing method opens the door to access to capital through contributions from individuals supporting a project, business, or cause. One of the main benefits of crowdfunding is that it provides a platform for female entrepreneurs to directly introduce their ideas to a diverse audience, and may overcome traditional barriers to accessing fundraising.
Business loan
Small and Medium Business Loans It can be accessed through banks, credit unions and online lenders. They can be protected with collateral Unsecured No collateral. Small business loans give entrepreneurs the capital they need to start, expand or manage their business. Repayment terms, interest rates, fees and collateral requirements vary by lender, so be sure to shop. SBA loans often come with lower fees, longer repayment terms, business-related resources and counseling.
Mentorship and Entrepreneurial Development Program
Women’s business centres provide access to a world of resources and mentorship opportunities, allowing you to expose you to fundraising opportunities that you would otherwise not be able to access.
Join meetings, events and webinars as networking communicates with industry experts. They can provide both their support and advice when it comes to funding your next venture.
Federal, State, and Organizational Grants
Federal, state, and organizations Small and Medium Enterprise Subsidies Women provide financial support without repayment. Many of these grants were created to promote economic growth by providing women and minority entrepreneurs with the resources to develop and expand their businesses, so it’s an attractive option, especially if getting business credit or loans is out of the question. However, this type of funding is not guaranteed to secure grants because it is competitive.
Private Business Grants for Women
Provided by large companies and companies Business grants specifically designed to support female entrepreneurs. Many of these grants provide financial support, mentorship and resources to help women-owned businesses thrive and thrive in their respective industries.
SBA 8(a) Program
SBA 8(a) Program is a nine-year program aimed at supporting small and underprivileged businesses, including those owned by female entrepreneurs. It provides professional support, training and contract opportunities for qualified companies, allowing them to compete in the federal market and drive long-term growth.
Conclusion
Female entrepreneurs face many challenges when it comes to accessing the funds to start a business. With dedicated programs, resources and initiatives, the SBA will be a good place to help women overcome financial barriers, realize their dreams, and start a search for fundraising.
