A business owned by a woman was an unfamiliar practice in the near past. But in 2016, it was estimated that there were 11.3 million women-owned businesses in the United States of America. This estimate is a forty-seven percent increase in women-owned businesses since 2007. The scenario can be different in other countries. The success rate of women-owned businesses in America is because of the policies and grants that the federal government provides to women-owned businesses. The rate of turning away women entrepreneurs to get small business loans by the banks has also increased alarmingly. However, it is the government with specific policies and grants to give credits and assist in flourishing women-owned businesses nationwide. Women entrepreneurs are making a marvelous impression on the small-business landscape countrywide.
Understanding Grants
Small business owners want to turn to grants because they think grants are free money and they will not have to pay them back. But these small business grants come with conditions. First, you must find a grant for which you are eligible as a small business owner. Then, you must comply with the application guidelines and wait for its approval until you get an entitlement for the grant. After approval, you still must report on the use of money afterward, genuinely.
Finding Federal and State Grants
Many small business owners think that government grants for small or woman-owned businesses are just a click away. But that is not true. Though there are federal grants in medical research, science, education, and technology progress, no such grants exist, especially for women-owned businesses. Some projects empower women, but these projects are to fund non-profit organizations and not-for-profit companies.
If you are searching for a women-owned business grant, visit the state’s website nearby. Each state website has a business section. Find grants and funding opportunities for women-owned and minority-owned businesses from that business section.
Women Owned-Business Opportunities
When there is more than 51% ownership in a business by a woman or woman, then there are individual facilities and assistance for such companies. Not all female business owners try these options, but many do.
Registering your business as a women’s business enterprise (WBE) will lead to several opportunities. Local governments, states, and federal governments have special programs for women-owned businesses.
The WBE certification process requires the following:
- A woman or women hold more than 51% of ownership
- The business has been in the market for the last six months, at least
- The owner must be a U.S. citizen. If ownership is with a woman who has not received U.S. citizenship yet, she must be a legal resident in the U.S.
- The proof is compulsory to show that the role of capital from the female business owner is genuine and in ratio to her ownership interest
- The female business owner must direct management and business decisions
If you try to pose a male-owned business as a female-owned business
If you are a male-owned business but give your wife 51% of the shares to declare the company as a women-owned business, ensure you will not be getting the benefits of a women-owned business. Auditors will check if the male’s office is more significant than the female’s or if the women are not in direct management and business decisions are not by women.
Loan Options for Female-Owned Business
Pilot Loan Programs assist prospective debtors in developing loan applications and obtaining loans. A Women’s Business Development Center or a Small Business Development Company are examples of such programs.
Private grants for women
Here are a few links to private grants for a woman-owned business.
- The Eileen Fisher Women-Owned Business Grant Program
- FedEx Opportunity Knocks Small Business Grant Contest
- Idea Café Small Business Grant
- Innovate HER: Innovating for Women Business Challenge
- Small Business Innovation Research
- Small Business Technology Transfer Program
- Zions Bank — Smart Women Grants
Conclusion
The government has particular policies and grants to give loans and assist in flourishing women-owned businesses nationwide. Suppose male entrepreneurs are paving their way and impacting the business economy. A company is a woman-owned business when a woman or woman retains more than 51% of ownership, and the women are the right decision-makers in the industry.
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