Franchise Prospector » Money & Financing
Women Find Start-up Capital for Franchises
Looking for ways to finance a new franchise? There is a wide range of loans and grants for women entrepreneurs at the federal, state, and local levels.
Looking at financing options for your new franchise? The breadth of recent channels of small business loans and grants for women should encourage you. There are creative financing packages today that have been established especially for women and minorities. Between federal, state, and local agencies--and by looking right in your own community--you have a great chance of finding the help you need to get your business up and running.
An excellent place to begin looking for financing is with The U.S. Small Business Administration (SBA). The SBA currently offers the following loan programs:
- Snapshot
- Basic 7(a) Loan Program
- Pre-qualification Program
- CDC/504 Program
- Micro-Loans
To apply for a small business loan, you'll need to document the purpose of the loan, a projected opening-day balance sheet along with detailed estimates for income, cash flow, and expenses, details of your lease, and your personal financial statements. If a local lender doesn't approve you at first, be sure to ask if they will consider the SBA loan guaranty program where the government can guaranty up to 85% of your loan.
The SBA also maintains a listing of free or low-cost local experts that will help mentor you in conceiving, financing, and building a small business. You can search by state and municipality.
Other Loans, Grants, and Venture Angels
Within your community, there are banks and credit unions that make special small business loans. Every state in the union has a small business branch that encourages lending for new enterprises. And national organizations have been created to support women business owners. For example, the National Organization of Women Business Owners has financing programs for women entrepreneurs. Count Me In for Women's Economic Independence offers "micro loans from $500 to $10,000 to women who are starting or growing their businesses."
Looking for grants? At Grants.gov you can search for over 900 different grants available from government agencies. The Women's Financial Fund offers up to $5,000 in startup grants for women opening a business. If you're thinking of heading back to school to learn entrepreneurship, the American Association of University Women offers Career Development Grants of up to $12,000.
Last, don't forget about angels. Angels are friends, family members, or venture capitalists in your community that are willing to lend money to support new businesses. They may be closer than you think.
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