Being a woman in business has its rewards and challenges. Accessing capital has historically been a challenge for female entrepreneurs. Although the Women’s Business Ownership Act passed in 1988 removed the requirement for a female entrepreneur to have a male cosigner when taking out a business loan, in 2022, 25% of women-owned businesses were rejected for a loan, compared to 19% of male-owned businesses, according to Forbes.
To help women in business finance their companies, here are some helpful resources from First Bank Texas, as well as funding options available to female entrepreneurs in Texas.
Free training for women entrepreneurs in Texas
The Small Business Administration offers several programs for women in business through its Office of Women’s Business Ownership to teach women entrepreneurs how to get federal contracts and access to capital or credit. It also offers general business counseling and training through local SBA district offices. Find your local SBA District Office in Texas to take advantage of this free training and consulting.
The SBA’s Office of Women’s Business Ownership oversees the Women’s Business Centers to help female entrepreneurs start and grow their business. This is a free service that provides a range of training opportunities designed to help level the playing field for women in business. Find your local Women’s Business Center in Texas.
Grants for women business owners in Texas
A grant can be powerful because it is money that you don’t have to pay back. Many organizations offer grants for entrepreneurs, some of which are specific to women-owned businesses. Before applying for a grant, read over the criteria to make sure you qualify. Here are some programs to look into:
- Amber Grant for Women: At least $30,000 is awarded monthly in Amber Grant money, as well as two $25,000 year-end grants.
- Grants.gov: The federal government offers countless grants, many of which are geared toward small businesses and entrepreneurs.
- Cartier Women’s Initiative: Female entrepreneurs around the country could win significant earnings to catapult their businesses forward. They have awarded 9 million U.S. dollars since 2006.
- Women Founders Network: Early-stage startups led by women can compete for awards in cash and services.
- Idea Cafe Small Business Grants: Idea Cafe awards one growing business a $1,000 grant each year, many of which have gone to female entrepreneurs.
SBA loans for women in Texas
Because there are still barriers to accessing capital for women, the Small Business Administration has prioritized helping women business owners get funding. Interestingly, women-owned businesses account for 41.1% of non-employer businesses and 19.9% of employer businesses in the U.S. Since 2017, all SBA loans that have been distributed to women have ranged between 30 - 33% of them being approved. An SBA loan is a guaranteed loan that helps make financing more accessible and affordable for business owners.
Some of the best business loan options for women are available through the SBA’s 7(a) and 504 loan programs. The SBA 7a program is typically used to increase working capital, finance inventory or equipment or to purchase real estate. The SBA 504 loan program is used for fixed assets and real estate. While these loan programs aren’t only for women-owned businesses, they typically are helpful to women.
First Bank Texas is a full-service financial institution, offering a range of products and services, including SBA Loans, and can help explain the options and benefits. Learn more about our SBA Loans available in Texas or contact us to get started.
