Small business grants for women offer vital support for female entrepreneurs. These grants empower women to start or expand businesses, fostering economic growth and gender equality.
With accessible funding opportunities, women can overcome financial barriers, realize their entrepreneurial dreams, and contribute positively to their communities.
Women Mean Business
Women are making big waves in the business world. Today, over 1.3 million businesses in the U.S. are owned by women. These businesses are putting in the hard yards, nearly $2.1 trillion annually.
One inspiring story in this world of women in business is Sara Blakely, the founder of Spanx. With only a budget of $5,000 and a practical idea, Sara started her business. Now, she’s a billionaire, and her brand, Spanx, is known worldwide. Sara’s journey from selling office supplies to running a fashion empire is a powerful example of what women can achieve in business.
Capital Matters
Capital is crucial for women entrepreneurs to start and grow their businesses, but they face significant challenges. Despite women running over 1.3 million businesses in the U.S. and employing 10.5 million people, they receive only a small fraction of available funding.
Only 4% of small business loans are awarded to women, and in the venture capital sphere, women-led companies receive just 2% of total investment. This discrepancy is remarkable, given that women-led tech companies yield higher returns and have lower failure rates.
Women seeking business funding can consider loans, grants, or crowdfunding. Grants are beneficial as they don’t require repayment but are hard to get and come with strict conditions. Loans provide more immediate funds but need to be repaid with interest. Crowdfunding is an option that requires effective marketing and might not always reach the desired goal.
Getting a Grant
First, to apply for a grant, understand its purpose and the funder’s goals. Carefully read the rules and deadlines. Write a proposal that clearly describes your project, its significance, and how it will make an impact. Include a detailed budget and sometimes additional materials like support letters or team information.
After submitting, actively communicate with the grant organization to demonstrate your interest and readiness to discuss your project further. Applying for a grant is about funding and an opportunity to connect with people who can support your project’s growth. However, grant approval is not guaranteed, so consider alternate funding sources.
Where To Get Small Business Grants for Women – Private Business Grants
1. Grants for Women.org for Women-Owned Businesses
GrantsforWomen.org was established in 2000 as an online resource where women business owners can find various grant and scholarship opportunities. The platform’s goal is to help women worldwide achieve their business-related dreams.
The application process for these grants varies, as each program has its own set of rules. GrantsforWomen.org helps you find grants that might suit your business, and then you’ll need to follow the specific application instructions of the individual organizations.
2. Amber Grants for Women Entrepreneurs
Another excellent opportunity is the Amber Grants for Women Entrepreneurs. These grants were named in memory of Amber Wigdahl, who passed away at 19 before she could realize her business dreams. The Amber Grants include monthly awards of $10,000 and two end-of-year awards of $25,000 each, given to previous monthly winners.
You need to fill out an application describing your business and its goals to apply. There’s a $15 application fee, which can be paid via credit card or PayPal. An advisory board selects the recipients, and by applying, you’re also automatically considered for other grants administered by WomensNet.
3. The Eileen Fisher Grant for Women-Owned Businesses
The Eileen Fisher grant supports women-owned businesses focusing on positive social and environmental change. Every year, the Eileen Fisher organization, a women’s clothing brand, gives out $200,000. Individual grants can range from $10,000 to $40,000.
To be considered, your business should be involved in helping women in decision-making, promoting sustainable economies, or influencing climate change policies. Although the program is on hold, you can apply online when active. Your business must be a registered 501(c)(3) nonprofit or have a fiscal sponsor.
4. FedEx Small Business Grants
FedEx created this grant to help small businesses in the U.S. The grand prize winner gets $50,000, plus up to $7,500 in credits for FedEx Office print services.
To apply, your business should be based in the U.S., make less than $5 million in annual sales, and have shipped goods in the past year.
Where To Get Small Business Grants for Women – Federal Business Grants
5. The 37 Angels Organization for Women Business Owners
37 Angels is a unique group of women investors who are all about helping female entrepreneurs get their startups off the ground. The name ’37 Angels’ reflects their mission to boost the number of women in angel investing from the current 13% to a much higher 50%. Angel investors are people with money to invest who are looking for new companies to support, usually in return for a piece of the company.
What’s great about 37 Angels is that they don’t just give money. They also connect women with a huge accelerator program network covering almost 50 industries. These programs are perfect for startups that are ready to grow fast. Plus, 37 Angels offers tools and advice on legal, accounting, and financial stuff, which can be tricky for new businesses.
37 Angel’s Gust Launch program is especially helpful. It helps startups polish their pitches and find the right investors. Thanks to this program, thousands of companies have raised over $1 billion.
Where To Get Small Business Grants for Women – Small Business Grant
6. Government Grants – Grants.gov Program
The government grants program is a go-to place for business grants for women and men. The website lists various grants sponsored by the federal government. You can use its search feature to find grants specifically designed for women business owners.
To apply, you first need to create a Grants.gov Workspace account. This account allows you and your team to work on and submit grant applications. Before applying, it’s crucial to check if you or your business meets the eligibility criteria for the grants you’re interested in. Each grant listing on Grants.gov provides detailed information about who can apply.
7. U.S. Small Business Administration’s Women Business Centers
The centers are part of a national network aimed at helping women start, grow, and expand their small businesses. They provide various services, including business training, counseling, and assistance in accessing credit and capital.
The Women’s Business Centers are designed to level the playing field for women entrepreneurs who face unique challenges in the business world. To learn more about how a Women’s Business Center can help your small business, including locating your nearest center, visit their website at Women’s Business Centers.
8. U.S. Small Business Administration’s InnovateHER
The grant is a yearly competition run by the U.S. Small Business Administration (SBA). They offer grants of up to $40,000. They’re looking for entrepreneurs who can develop a product or service that makes a difference in the lives of women and families, has a good chance of success in the market, and fills a gap in the market.
The SBA was set up in 1953 to help small business owners and people who want to start a business. You can check out their announcement on the Federal Register for more information about the InnovateHER Challenge, like when to apply and what you need for your application.
9. U.S. Economic Development Association
The U.S. Economic Development Association (EDA) is about helping the economy grow, especially in areas that need it. They offer different kinds of grants and support, not just for women, but their programs can be really helpful for women who own businesses. The EDA focuses on projects that bring new ideas and growth. You can visit their website to find out what kind of grants they have and how to apply.
Alternative To Small Grants
If you’re a woman running a small business and need funding, consider these three options:
- Finding investors or financial partners like angel investors, who support startups, or venture capitalists, who invest in high-growth businesses. These investors not only provide capital but also offer expertise and networks.
- Applying for small business loans from banks or lending companies. Loans offer structured funding but require repayment with interest, so you’ll need a good plan for using the loan to grow your business and increase revenue.
While exploring funding options, it’s crucial for women entrepreneurs to not only consider grants but also understand financing aspects such as SBA loan interest rates. Gaining a deep understanding of SBA loan interest rates can significantly impact your decision-making process when considering loans for business growth. For a detailed explanation of understanding SBA loan interest rates, it’s beneficial to explore current rates and how they may affect your business. - Using crowdfunding platforms like Kickstarter or Indiegogo. This method allows you to raise money directly from the public, helps build a community around your business, and validates your business idea in the market.
Frequently Asked Questions – Small Business Grants for Women
How Can I Get Money To Start a Business?
Consider various funding options like SBA small business loans, business grants, and crowdfunding. Small business grants are a great choice as they don’t require repayment, making them ideal for startups and new businesses. Business loans from banks or lending institutions can provide substantial capital, though they come with repayment obligations.
How Can a Woman Start Her Own Business?
A woman can start her own business by developing a solid business plan outlining her business idea, target market, and financial projections. Researching and understanding the market and identifying a unique selling proposition are important.
Female entrepreneurs should also explore small business grants specifically for women-owned businesses, which can provide crucial funding to kickstart your business.
Is It Harder for a Woman To Start a Business?
Starting a business can be challenging for anyone, but women may face additional hurdles due to limited access to funding and fewer networking opportunities. Women entrepreneurs often encounter challenges in securing business financing from traditional sources, making government grants and small business grants for women crucial.
What Is It Called When a Woman Owns a Business?
A woman who owns a business is often called a woman-owned or women-owned small business. These businesses contribute significantly to economic development and job creation.
Conclusion – Small Business Grants for Women
Small business grants for women serve as powerful catalysts for economic empowerment and growth. These grants provide vital support, enabling women entrepreneurs to pursue their dreams, create jobs, and contribute to thriving communities. Investing in women-owned businesses sows the seeds for a more inclusive and prosperous future.
Related Reads:
- How to Start A Business Without Quitting Your Job – 7 Steps To Start
- How To Make Money Fast as a Woman
Founder of Spark Nomad, Radical FIRE, Journalist
Expertise: Personal finance and travel content
Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Radical FIRE, a personal finance platform, and Spark Nomad, a travel platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.