March 4, 2022 By Suzanne Robertson

Tuesday, March 8 is International Women's Day 2022. This is a global celebration of the social, economic, cultural, and political achievements of women and marks a call to action for accelerating women's equality. Although women hold positions of power across many industries in the United States - even serving as the current Vice President - there are still many ways women across America can be empowered and thrive. Here’s information about this important day and why it matters.

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What is International Women’s Day?

Did you know that up until 1988, a male co-signer had to be on a loan for a female entrepreneur seeking funding to start a business? Equal rights are important to the SmartBiz team and we strive to hire a diverse workforce with women in key roles in addition to providing low-cost funding to help female entrepreneurs fund their business dreams.

This year’s International Women’s Day theme is #BreakTheBias, encouraging a gender equal world. The campaign aims to promote the following:

  • A world free of bias, stereotypes, and discrimination
  • A world that is diverse, equitable, and inclusive
  • A world where difference is valued and celebrated
  • Working together, women's equality can become a reality

The SmartBiz Loans team knows that from challenge comes change, so we are dedicated to helping women-owned businesses succeed. We work with small businesses owned by women every day and their businesses are thriving in America.

Support for woman owned businesses

Women’s Business Enterprise (WBE) Certification

Because of their minority status, special opportunities and assistance exist for women-owned businesses. A woman-owned business is defined as a business with at least 51 percent ownership by a woman or women, including contracts, procurement set-asides and financial and/or business assistance.

Not all women-owned businesses pursue these benefits, but certifying your business as a women's business enterprise (WBE) can help your enterprise. Here’s some information you need to know about WBE advantages and opportunities for your women-owned business.

Two women’s business organizations certify WBEs: the WBENC (Women’s Business Enterprise National Council) and the NWBOC (National Women Business Owners Corporation).

WBE certification is necessary if you wish to participate in programs that require tracking the amount of business done with women-owned enterprises. Most local, state and federal government purchasing agencies have programs for woman-owned businesses.

To become WBE certified, you must show:

  • Woman Ownership: You must prove that the business is 51 percent owned, controlled, operated, and managed by a woman or women.
  • Time in business: Your company must have been in business for at least six months.
  • US citizens: The owner or owners must be US citizens or legal resident aliens.
  • Contribution of capital: The woman business owner or owners must show that the contribution of capital is real and in proportion to the ownership interest in the business.

Grants for Women Business Owners

A grant is a fund given by an entity – often a public body, charitable foundation, or a specialized grant-making institution – to an individual or another entity (usually, a non-profit organization, sometimes a business or a local government body) for a specific purpose linked to public benefit.

Unlike loans, grants are not to be paid back. If you’re a female small business owner, be sure to explore grants that might be available to support your venture. Here are good places to start:

    This is the biggest database of U.S. government grants on the internet. (Last we checked, there were over 2,300 active grants available to apply for on the site.) If you intend on applying for a federal grant, start your search here.

To apply for the grants, you’ll have to obtain a D-U-N-S Number, supply your EIN or SSN, and register for an account on the System for Award Management (SAM) here.

  • The U.S. Small Business Administration (SBA)

The SBA is an agency of the U.S. federal government whose purpose is to help entrepreneurs and small business owners in the United States succeed. One of the primary ways that the SBA helps small businesses is by improving their access to funding—including low-interest small business loans and grants. Check out the SBA’s grants page for information about any grants your business might be eligible for.

  • Your Local Women’s Business Center

One specific way that the SBA supports women small business owners is through its support of a national center of women’s business centers, which offer businesses mentoring and networking opportunities, business development training, business plan development, and access to funding. Use the SBA’s lookup tool to find an SBA-supported Women’s Business Center (WBC) near you.

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Federal Contractor Status and State/Local Certification

To help provide a level playing field for women business owners, the government limits competition for certain contracts to businesses that participate in the women’s contracting program. According to the Small Business Administration, the federal government's goal is to award at least five percent of all federal contracting dollars to women-owned small businesses each year.

To be eligible for the women’s contracting program, your business must:

  • Be a small business (the SBA’s size standards determine whether or not your business qualifies as small).
  • Be at least 51% owned and controlled by women who are U.S. citizens.
  • Have women manage day-to-day operations and also make long-term decisions.

Loan options for woman-owned businesses

Although these loans are not specifically earmarked for women, they can provide the funds you need for your business.

  • SBA Loans

If you qualify, the Small Business Administration’s low-cost loan programs can be your best option. SBA loans have low rates, long terms and low payments to fuel stability, growth, and savings.

There are three types of SBA loan programs available for business owners, the 7(a) Loan Program, the CDC/504 Loan Program and the Microloan Program

  • The 7(a) Loan Program

An SBA 7(a) loan can be used for a variety of purposes.

Working Capital: Purchase equipment, increase inventory, add marketing programs, for operating expenses to hire additional staff.

  • Debt Consolidation Loans: Refinance merchant cash advances, short-term business loans, high interest business loans, daily or weekly payment loans or business credit cards.
  • Commercial Real Estate: Refinance an existing commercial real estate mortgage, buy an office building or other owner-occupied commercial space.

For in-depth information about the popular SBA 7(a) loan program, visit the SmartBiz Small Business blog and review our comprehensive article: What is an SBA Loan?

  • The 504 Loan Program

This program was created to give small businesses low cost funds for expansion or modernization. Typically, up to 50% of project costs are funded by a lender backed by the SBA. CDCs (Community Development Corporations) usually fund up to 40% of the project cost. The final 10% is a cash down payment expected to come from the small business owner. A 504 SBA loan might be a good fit for small business owners interested in purchasing a commercial real estate property and if their unique business circumstances fit with the public policy goals of your local CDC. Find a CDC here.

  • The Microloan Program

The Microloan Program is for very small businesses, including start-ups and provides loans of up to $50,000. Requirements to qualify for a microloan can vary depending on the lender. Proceeds from an SBA Microloan can be used for most business expenses but not for paying down debt or real estate purchases.

  • Non-SBA Loans

There are plenty of non-SBA loan options available although they may have higher rates, shorter terms and larger payments.

  • Business Lines of Credit

A business line of credit allows you to borrow funds up to a limit based on your credit, typically smaller than a term loan. You only pay interest on the amount you use, and you can continue borrowing as necessary until you reach the set maximum. These loans are usually unsecured, meaning that you won’t have to provide collateral to qualify. For additional information, read this post from the SmartBiz Blog: Small Business Lines of Credit Pros and Cons.

Business credit cards are revolving lines of credit. The main distinction is that they don’t terminate once the predetermined limit is reached. They work like personal credit cards, with varying spending rewards and offers depending on the lender. Learn more here: 5 Business Credit Card Myths.

  • Merchant Cash Advances

A merchant cash advance (MCA) is most often used by small businesses that accept credit and debit card sales. You receive a specific sum in advance that is repaid either by a percent deduction from daily transactions or through daily or weekly payments.

Keep in mind that MCAs often lead to extremely high annual percentage rates. Even the minimum within the range can be several times larger than term loan annual percentage rates and can reach up to well over 300%. For more info, read What You Need to Know About an MCA.

  • Bank Term Loans

If you need funds quickly, consider applying for a bank term loan. SmartBiz currently offers term loans through its network of banks for working capital, debt refinance, and new equipment purchase, including:

  • Loan amounts between $30,000 to $350,000*
  • Repayment terms between 2 to 5 years
  • Fixed interest rates*
  • Monthly repayments
  • No prepayment penalties

*Interest rate depends on loan term and the applicant's credit and financial profile

We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan.

Women owned-business assistance

If you need help launching, running, or expanding your business, free or low-cost assistance is available.

A Women's Business Development Center or a Small Business Development Company offers all kinds of programs and assistance for small business owners. Locate assistance centers here: Find local assistance. SCORE is also a fantastic resource, pairing entrepreneurs with seasoned business professionals. Locate your local SCORE office here.

Female entrepreneur success stories (Insert photos of owners from published business stories)

Despite the success and growth of businesses owned by women, a troubling blanket of unfairness still exists. On average, women-owned small businesses are approved for financing at a rate of only 32%, a full three-percentage points lower than approval rates for male-owned small businesses.

We love to speak with our female customers to learn about their entrepreneurial journey to successful business ownership. Read about them on the SmartBiz Small Business Blog:

School for the Dogs® - New Yorkers love their dogs. And if you’re in Manhattan’s East Village and come across a well-trained pooch, they might just be a student of Annie Grossman.

Off-Road Vixens® - Fate stepped in to connect entrepreneurs Shari Bisquera and Carey Kiehn. Shari moved into Carey’s neighborhood, and discovered that they both share a passion for riding dirt bikes and snowmobiles – sports not typically targeted to women. They launched Off-Road Vixens, offering infant, youth, and adult clothing, appealing to all generations of females. The featured clothing changes with current styles and stays in line with the founders’ passions to provide the best possible products.

AmsedBK Designs® - Desma-Ann Bidjou-Kerekes, is bringing color, creativity, and happiness back to the carnival scene. Her business has been built successfully by positive word-of-mouth and a large social media presence.

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