Women face unique hurdles when it comes to financing and running a business. Keep reading to discover some statistics that paint a precise picture of the challenges businesswomen face, plus some of the best financing tools at their disposal.
Business Loans for Women: What You Need to Know
Women account for more than half (58%) of student debt in the U.S. Although several factors contribute to this situation (for example, more advanced degrees are awarded to women than to men), the result is less financial freedom for women and more difficulties for those who want to start a business.
According to data from the Bureau of Labor Statistics, women’s annual earnings are equal to only 82.3% of the men’s. The pay gap between men and women is real, and it doesn’t look like the situation will change anytime soon.
To complicate matters even more, over the last several months, women have been leaving the workforce at unprecedented levels. The Department of Labor believes that the COVID-19 pandemic has set back women’s labor force participation by more than 30 years.
These and other factors combined make it extremely difficult for women to start a business. In the next sections you will find some financing tools that can be particularly useful for women looking to finance a venture.
From SBA Loans to Bridge Loans
SBA loans remain one of your best alternatives if you are looking to start a business or to finance an existing one.
These loans usually feature longer repayment terms and lower interest rates, giving underserved borrowers (such as women or minority owners) the breathing space they need to get their business off the ground.
The two most popular SBA lending programs are 504 loans and 7(a) loans. 504 loans are used to finance major fixed assets such as real estate or heavy machinery. 7(a) loans, on the other hand, are more versatile: they can be used for anything from working capital to the purchase of furniture or supplies.
As useful as they are, SBA loans are not for everyone. For example, if you are looking for a loan you can use for a wide variety of purposes, then a conventional loan may be a better fit for you. Or if you need funds only for a limited period of time while you secure permanent financing, then a bridge loan is the answer.
If you want to learn more about your options in business loans for women, contact the experts at Gellyfish Commercial. We’ll help you make sense of your alternatives to find the financing solution that works for you.
Gellyfish: Certainty of Execution in Business Loans
Looking for a business loan in California, or anywhere in the United States? Gellyfish is here to help. We offer financing solutions with the certainty of execution you need to take your business to the next level.
We are located in Riverside, and work with clients all over California and beyond. Contact us today by email (firstname.lastname@example.org), telephone (877-800-4493), or social media (Facebook, Twitter, LinkedIn), to schedule a free consultation or to learn more about our full range of financing options.