Small Business Loans for Women: Funding Your Plans

The last fifty years has seen significant growth in U.S. small business ownership by women:

• in 1972, less than 5% of all businesses were owned by women;
• by 1982, 2.6 million businesses were women-owned;
• in 1994, that number had risen to 6.5 million businesses; and,
• by 2023, women-owned businesses represented 42% or 13 million businesses.

There are several factors that have fueled this growth, most importantly, access to credit, and other sources of capital, that have enabled many savvy entrepreneurs to buy or build their business.

Sources of Funding

Women business owners can take advantage of a variety of funding sources, including loans, venture capital, and grants.

Loans

One of the major sources of funding for small businesses are SBA loans. As an SBA-Preferred Lender, First Financial Bank has helped many entrepreneurs gain access to the credit they need to finance their business plans. We can provide guidance to help the loan applicant navigate the loan process and be well-positioned for a successful outcome. Our team understands the challenges of being an entrepreneur and women-owned business. Dr. Schwanda Flowers successfully owned a pharmacy for years. Now, she’s passionate about giving support to the next generation of women business owners. In her dual roles as a Managing Director and Loan Officer, Dr. Flowers is able to look for creative solutions to help women become small business owners.

Venture Capital

One potential funding resource for a startup business is venture capital (VC). These private equity firms have the potential to provide both funds and mentorship to entrepreneurial companies that show promise for successful growth. If a VC invests in your company, they will own a portion of your company.

There has been an increase in the growth of VC funding for women-owned companies over the past decades. Unfortunately, less than 25% of VC funds are currently awarded to women entrepreneurs. Some firms are focused on identifying women-owned businesses that have potential for investors, and those VC firms may be resources for you.

Grants

There are also grants available for women-owned small businesses. These can be grants from either public or private entities. Each has its own rules and requirements for eligibility, how to apply, and the potential award amount. In addition to money, they also provide other types of resources, such as technical advice and mentorship.
Mentorship can provide women with networking and insights they might not otherwise be able to access. Mentorship opportunities are not only available through VC and grantors but also through:

• U.S. government, plus your state and local government agencies
• National and local chambers of commerce
• Women’s business centers (find one near you here)

Business development centers that focus on women typically also offer training courses, technical advice, and networking opportunities for little to no cost.

Other resources focused on providing skills and resources for women include:

• Industry-specific and trade associations, including those focused on the building trades, provide skill training and licensing requirements
• Business women’s organizations, many with a focus on leadership skills and networking
• Professional organizations for those in law and healthcare
• Tech-driven associations that connect women across industries but are focused on technology

Across the U.S., hundreds of other membership organizations have sub-groups and committees that provide insights and resources to women entrepreneurs.