Dedicated Funding Opportunities for Woman-Owned Businesses
In nearly every funding channel, women founders receive disproportionately lower investment compared to men. (While inequities exist for many under-represented founders, today we’re focusing on women.)
- Venture capital: Women receive 2% to 3% of all venture capital funding, compared to the 97% to 98% that flows to men. When you consider that roughly 1% of all businesses receive VC to begin with, that brings this number even lower.
- Business Loans: Historical lending data shows that women consistently receive smaller business loan amounts at higher interest rates.
- Grants: With a lack of reliable figures around gender and business grants, some inferences can be drawn from a long-term analysis (published in 2023) on academic research grants. Men and women were neck and neck in receiving grants, with men in the lead by 1%. However, men received over twice the dollar amount on average. Men tended to receive the amount they requested, while amounts to women were regularly reduced from their request.
While gender isn’t the only animating factor in the funding statistics, the gender bias is real. Did you know as recently as 1988, a woman could not get a business loan without a male relative as a co-signer? The merits or profitability of her business had no bearing. It took an act of Congress, with the Women’s Business Ownership Act (1988), to formally recognize this “inequality of access to commercial credit” and remove the restriction.
The number of women-led businesses exploded after this. The march toward equality of opportunity has been less brisk. Women-specific funding options are crucial tools to help level the playing field to opportunity and access in entrepreneurship.
Today, there is an overwhelming amount of information on the internet about resources for women founders. Accordingly, this page is not intended to be a comprehensive list of women-focused grants and loans. Here we’re providing tips and tools to kickstart a funding journey, or to refine that process for greater success.
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How to Find Grants and Loans for Women-Owned Businesses
Let’s not sugarcoat it, finding and researching opportunities is time-consuming. This is one of those rare exceptions when saying, “search online,” isn’t a cop-out!
In combination with the other discovery pathways below, a quarterly online search is a smart tactic. First, media outlets and other organizations regularly do some of the work for you by keeping updated lists of grants and low-interest loans. Second, grant cycles and loan options vary, so different times of the year may present different options.
Discovery Tips
- Do a quarterly, online search for collected lists as grants cycles and interest rates change; try different narrowing your grant search by gender, industry, and specific demographic characteristics
- Search the SUCO funding database.
- Bookmark relevant options below
- Network with rural Colorado business development offices, business accelerators, and trade organizations so they will share new opportunities.
- Sign up to receive newsletters from potential grantors. Some good examples are:
- Several organizations maintain databases specifically for grants for women-owned businesses. A few excellent options:
- Ladies Who Launch
- Hello Alice (login required)
- iFundWomen
Exploring Grants
Grants are a high-value option for founders because they don’t require repayment and the dollar amounts can be significant. They do typically come with responsibilities and the applications can be time-consuming. So be thorough in your vetting before jumping in. Below is a brief overview of the types of grants you’re likely to find, with select examples.
Tip: Don’t immediately dismiss a grant opportunity that’s in a closed cycle. Many grantors skip a year (or more) or slide timeframes for opening applications. If you meet all the eligibility requirements for a worthy opportunity, sign up on their mailing list to be alerted when the new cycle opens.
Government Grants
Federal and state-level grants specifically for women-owned businesses are limited. Considering they’re typically associated with a designated initiative or funding effort, like the pandemic relief programs or the Bipartisan Infrastructure Law of 2021, expect variability over time.
Federal Sampling:
Grants.gov: On the national level, grants.gov is the official grant database for the U.S. government. The grant database page has filters for eligibility (i.e type of organization) and industry/category, and allows a keyword option to further refine the search by “women,” for example. While it may be worthwhile to check in at grants.gov occasionally, most women-specific offerings are for highly niche business types.
U.S. Small Business Association (SBA): The SBA has resources specifically for women-owned businesses, including funding opportunities. At present, these don’t include grants, but they may again in the future. The SBA is an excellent resource for loans (see below) and for helping women-owned businesses qualify and compete for government contracts.
U.S. National Science Foundation (NSF): For entrepreneurs in tech, advanced industries or traditional sciences, NSF maintains a database of grants and other funding. Note that it’s not women-specific.
Colorado State Sampling:
OEDIT: The Colorado Office of Economic Development and International Trade (OEDIT) maintains a Programs and Funding database, with filters for women-owned businesses and grants. Currently, there are no grants exclusively for women, but we encourage all entrepreneurs to review all grant options. With a mandate and aggressive goals to support economic development in rural Colorado, however, OEDIT and the database are excellent resources for funding opportunities and business incentives for rural businesses. It’s also worth following OEDIT’s Minority Business Office. Its dedicated services help minority entrepreneurs navigate challenges, making it a valuable asset for fostering inclusive economic development in the state.
Tip: Don’t overlook the tax incentives and rural development programs on OEDIT’s Programs and Funding page. These aren’t grants, but the financial value can really add up.
Private Grants
Currently, grants from private entities, organizations, and foundations provide the biggest wealth of options for women entrepreneurs.
While the selection of grants below is not limited to rural Colorado founders, women across rural Colorado have been selected for several of them. The grants represented here are intended to provide a glimpse of what’s out there.
A Sampling of Grants for Women Founders:
COLORADO ONLY: Women & Girls of Color Fund: Provided by the Women’s Foundation of Colorado (WFCO), this $10,000 to $20,000 award is a values-driven grant for organizations committed to building economic power and working toward gender, racial, and/or economic equity. Most grantees are not-for-profit organizations, but for-profit businesses can inquire about eligibility. There is a designated cycle for Rural Colorado applicants from January to April. While there will not be an open funding cycle in 2024, applicants can contact Camisha Lashbrook, donor relations manager, (CamishaL@wfco.org) for updates.
Cartier Women’s Initiative Fellowship: Available annually, this fellowship provides coaching, executive training, one-on-one business consulting, global networking opportunities, and up to a $100,000 grant. Julia Taylor, founder and CEO of GeekPack, is a 2024 fellow from rural Colorado. The judges selected her based on the clarity and ambition of her company’s mission, and her smart fiscal management.
Amber Grants for Women: One application makes you eligible for a $10,000 Amber Grant (one winner monthly); a $10,000 Startup Grant (one winner monthly for businesses in idea stage or under $10,000 in sales); a Business Category Grant (one winner monthly per rotating business genres); and annual $25,000 grant for the single best application of the year.
Ladies Who Launch, Launch Program: We mentioned the Ladies Who Launch grant database, “Launch” is the eponymous program that offers a $10,000 grant, industry-specific mentorship, and six months of access to training resources. It’s open to women and non-binary founders of consumer packaged goods businesses with $100,000 to $499,000 annual gross revenue. (A 2024 cycle has not been announced.)
Fearless Fund Grants for Women of Color: The Fearless Fund is a venture capital firm founded and led by women of color, with the sole focus of investing in women of color. The fund partners with big names, like Mastercard, Tory Burch and Ulta, to offer grants. The grants have varied eligibility and varied open/close dates. Most financial awards range between $10,000 to $20,000.
EmpowHer Grants: Offered by the Boundless Futures Foundation, this grant is offered exclusively to women-owned businesses working to create positive change around a social issue, such as poverty, sustainable communities, equal rights, or climate. The financial award of up to $25,000 is issued as a reimbursement to cover business expenses.
Waves of Change Grant: This is a unique opportunity for women of color with an early stage business to receive a full brand and marketing refresh, or to “relaunch your business with strong foundations,” as the website says. The service grant includes: logo design, website design, website copy and SEO, brand tone/voice, marketing and tech consulting, and an array of options to choose from.
High Five Grant for Moms: Are you an entrepreneur and a mom? The Mama Ladder partners with other supporting organizations to offer $1,000 to $10,000 grants. Applications open in September. A panel of fellow entrepreneurs narrows the field to 24 finalists, then the voting goes public. Moms of all stripes, including those whose children are adults and out of the house, are eligible. The motivating premise in 2023 was to share the “why” behind your business.
Women’s Founders Network Fast Pitch Competition: This is a grant (up to $25,000) and coaching opportunity open to women founders. Selected applicants receive free business development services, financial mentorship, and one-on-one pitch coaching. In October, a live pitchfest is held, where the financial winners will be selected from two business tracks (basically tech and non-tech). If you’re looking for VC funding, a private, curated pitch event is also part of the package.
Exploring Loan Programs for Women-Owned Businesses
Who can offer business loans specifically to women and other protected classes? Certain government programs, nonprofit, 501(c)3 organizations, and private dedicated funds can limit eligibility to certain protected classes for business loans. Banks, too, can offer targeted loans via Special Purpose Credit Programs (SPCPs), which are authorized by the Equal Credit Opportunity Act (ECOA). SPCPs are intended to “address inequities in access to capital.”
The benefits of these qualified programs tend to be: better terms, less competitive access to capital, more lenient eligibility standards (e.g. credit standards, collateral, years in business, etc.), or a combination of all.
As with any financial product, the top priority is to understand all of the terms, risks, and expectations–regardless of the provider. And don’t be afraid to negotiate–especially with commercial banks! Not all offerings are open to negotiation, but you never know until you try.
A Sampling of Loans Available to Women Entrepreneurs:
Small Business Association (SBA) Loans: The SBA doesn’t actually provide the loans. Instead it matches founders (women and men) with lending institutions. There are three loan options, ranging from $500 to $5.5 million. The benefits of going through the SBA (depending on the option) can include: lower interest rates, limited fees, and the SBA will guarantee a portion of the loan.
COLORADO ONLY: Rural Woman-Led Business Fund, by 1st Southwest Community Fund: This fund provides women founders in rural Colorado with loans up to $75,000, with generous terms and remarkably low interest rates (currently 1% to 3%). It is inclusive of all women and nonbinary individuals, though it especially highlights multicultural, multilingual, and multigenerational women-led businesses.
Kiva Loans: Kiva turns the bank loan model completely on its head, with crowdfunded loans up to $15,000 at 0% interest. These are not exclusively for women. Business owners apply, then must solicit small donations from friends and family. If a threshold is met, the loan request is made public, where the Kiva audience donates up to the requested amount. The benefits are 0% interest and that people with low or no credit history can qualify. The catch is that crowdfunding can be very time intensive. For help in Colorado, contact Prairie Rose Development.
COLORADO ONLY: Colorado Enterprise Fund: This fund provides a variety of business (mostly) fixed rate loans up to $1,000,000. The focus is on low-barrier loans that encourage small business development in the state. While there is a loan specifically for women and minority-owned businesses, there are also options for black-owned businesses, creative industries, and healthy food businesses.
U.S. Bank Business Diversity Lending Program: Here’s an example of a bank establishing an SPCP to expand access to capital for women, minority and veteran business leaders. The loan products are the same as their commercial loan offerings (i.e. open eligibility), but the Diversity Program increases eligibility by relaxing credit standards and other qualifications for the target groups.
12 Tips To Organize and Successfully Apply for Loans and Grants
Government grant applications have a reputation for being intense. Private grant applications are all over the board in time and complexity. These 12 tips will help smooth out the process for all.
Organizational and Vetting
1. Set up a deadline calendar. Not only will it help keep you organized, it will also help you prioritize which grants are worth your time in applying. Include application deadlines and requirement submission deadlines, plus reminders with ample time to get it done.
2. Develop your own vetting system to determine which opportunities are worth your effort. This may include: the length and complexity of the application, the amount of the award, on-brand alignment with a certain organization, and your odds at being successful.
3. Research the funding provider. Look into the grant requirements and the organization’s mission. If you can demonstrate how your organization aligns with that mission, it may boost your chances.
4. Thoroughly understand the requirements, timing, and post-award responsibilities. While this seems pedantic, it’s worth re-stating. Is it a matching grant where you need to secure equal funding by a certain time? Will you be attending ceremonies, mentorship programs, and other events if you’re selected? Weigh the time, money, and benefits.
5. Pay attention to the lower dollar value opportunities. Everyone’s head is turned by a six-figure grant, but some smaller opportunities have: less competition, easier/quicker applications, and frequently, can be awarded more than once.
Business Fundamentals
6. Understand the impact of your company mission. A mission isn’t just a marketing exercise when it comes to funding. Especially for private grants and some government grants, it helps illustrate your values and what you hope to achieve. A strong mission, vision, and values statement can also provide insight to the size and buying power of your target market (aka growth potential).
7. Define your business’ value proposition. Showcase the unique value your business delivers to the audience it serves. How is your company and product differentiated from the competition? While value propositions are usually tools for marketing and sales, also consider creating a secondary, focused value proposition around what your business brings to the local community: new jobs, higher paying jobs, commercial space rental income, etc. Many government grants and loans, especially, will want to see that.
8. Ensure your financial documents are ironclad and that you, as the founder, have clarity around every line item. For those without an accounting background, there’s a learning curve to thoroughly deciphering profit/loss sheets and other financial documents. While they are a snapshot of fiscal wellness, they’re also storytelling tools. Before applying for funding, sit down with your accountant to ensure you can relay both the accurate facts and a compelling story (of where you’ve been, how you’ve managed organic growth or invested monies, and where you’re going).
9. Write a strong business plan. There are thousands of online tips and templates for creating a business plan. To get started, search for examples in your industry. Use your chosen template to compose a rough draft without overthinking it. Based on their life experience, most founders will be more confident writing some sections than others. Refine the areas where your strengths lie, and outline questions in the areas where you have less experience. Seek outside guidance to review, advise, and help compose the final draft (see tip #11).
Write a Standout Application
10. Reach out to prior grant recipients. Ask what made their applications successful.
11. Seek professional guidance. Whether via mentors, local business development resources, or paying a pro, it’s worth seeking expert advice or simply getting a second set of seasoned eyes on applications and technical docs. This is not about the founder’s competency. It’s about getting strategic, professional insight. Pros may include: an accountant to advise on financial documents, a grant writer to set you for success, and a business mentor to review your business plan.
12. Repurpose successful language and application details. If an application is successful, adapt that language and/or approach for other applications. Don’t copy it verbatim, as every application should be tailored to the specific organization. After she and her team wrote a few grant applications that weren’t successful, Julia Taylor, founder and CEO of GeekPack, hired a pro grant writer and voila: success. She’s since earned new funding and honors by repurposing that strategically written content in different applications.
Hot Tip: We’ve now advised hiring professionals a number of times. The irony of spending money to help secure funding is not lost on us!
Luckily, rural Colorado (and indeed the Front Range, too) has a network of state-sponsored small business development centers that offer business advice, access to professionals, and training courses for free (or low cost). On a national level, the National Women’s Business Council has gathered a list of free or low-cost business service providers and organizations.
Conclusion
Whether leveling the playing field or rebuilding a new field from the ground up, focused funding for women entrepreneurs is a crucial step toward supporting job creation, community stability, ambition, and economic prosperity for all of rural Colorado.
Funding opportunities listed on this page and beyond exist to help every individual realize their business dreams.
To find expert guidance, camaraderie and networking in your business journey, join the Startup Colorado Community today.
Additional Resources
You may wonder, given federal lending laws that prohibit discrimination based on gender and other protected classes, how banks and institutions can offer business loans specifically for women?
The answer is that most cannot without special accommodation. Some banks may market a business loan product as “for women,” when in reality the applications are open for any individual. Most of these are perfectly legitimate products and worthwhile. Just be aware that some loans marketed toward women don’t provide any advantage to women applicants.