The SBA is set up to help all small business owners get financing to start or grow their businesses. Yet, while the SBA doesn’t discriminate, it does have a vested interest in helping more women business owners get SBA loans.
Women in Business – Stats
- Women Owned Business in the United States
- More than 11.6 million firms are owned by women, employing nearly 9 million people, and generating $1.7 trillion in sales as of 2017.
- Women-owned firms (51% or more) account for 39% of all privately held firms and contribute 8% of employment and 4.2% of revenues.
- Businesses Owned by Women of Color
- 4 million firms are majority-owned by women of color in the U.S.
- These firms employ 2.1 million people and generate $361 billion in revenues annually.
- Million Dollar Businesses
- One in five firms with revenue of $1 million or more is woman-owned.
- 2% of all women-owned firms have revenues of 1 million or more.
Statistics from the American Express OPEN “The State of Women-Owned Businesses 2017” for full report click here.
Financing is Available
The Small Business Administration (SBA) is a government entity that has a wide array of resources for female entrepreneurs. SBA itself does not make these loans. Banks and other direct lenders actually make the loans, and the SBA subsidizes a portion of the loan if the borrower defaults.
These small business loans for women come with a government guarantee, so lenders find them less risky. SBA loans are a great financing option too—with low interest rates (currently below 5%) and long loan terms (up to 25 years).
The SBA microloan program lends small amounts of money—up to $50,000 in capital—for startups and micro businesses. The SBA 7(a) loan program is for general purpose working capital for businesses that are already a few years old. And the SBA 504 loan program provides money for the purchase of commercial real estate or equipment.
SBA loans for women are perhaps the best types of women business loans out there, so it’s worthwhile to see if you qualify.
General Resources for Women in Business
- The Office of Women’s Business Ownership helps women entrepreneurs through programs coordinated by SBA district offices. Programs include business training, counseling, federal contracts, and access to credit and capital.
- The Women-Owned Small Businesses (WOSB) Federal Contracting program helps women-owned small businesses compete for federal contracts.
- The National Women’s Business Council is a non-partisan federal advisory council serving as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration. The Council is the government’s only independent voice for women entrepreneurs, tackling important and relevant economic issues.
- Becoming a Women’s Business Enterprise (WBE) is another tool to add to your marketing kit that helps promote your company to major corporations that are actively seeking to conduct business with a woman/women owned business(es).
More resources for women-owned small business:
- Association of Women’s Business Centers (AWBC)
- National Association of Women in Construction
- National Association of Women in Real Estate Businesses (NAWRB)
- National Association of Women’s Business Owners (NAWBO)
- S. Women’s Chamber of Commerce (USWCC)
- Women’s Business Enterprise National Council (WBENC)
- Women Impacting Public Policy (WIPP)
- Women’s Presidents’ Organization (WPO)
Why Growth Corp?
Because we help get deals done. Growth Corp is the largest CDC in Illinois, the top 504 Lender in Chicago and a market leader in quality, consistent service. In addition, Growth Corp has earned an Accredited Lender status with SBA, which grants us the ability to expedite the processing of loan approvals and closings. Contact any member of our Lending Team to discuss your goals and ideas.