Empowering Women Entrepreneurs: Grants for Women-Owned Businesses
September 6, 2023
- by iCapital Funding
Entrepreneurship plays a crucial role in a strong economy. However, women entrepreneurs looking to start or grow their own businesses can sometimes have a tough time getting the funds they need. This is where business grants become important. These grants are like a safety net for women-owned businesses, giving them the financial support they need to kickstart their innovative ideas and thrive.
Get Funded Now
Why Choose Grants for Your Small Business
Unlike other forms of funding, business grants do not require repayment, making them an attractive option for business owners. However, securing a grant often requires a meticulous business plan and a comprehensive grant application. Despite these hurdles, the rewards can be monumental, allowing business owners to grow their enterprises without the pressure of repayments.
Exploring Business Grant Opportunities
Among the most prominent grant opportunities are the Amber Grant and the FedEx Small Business Grant. The Amber Grant, which has been instrumental in funding women entrepreneurs since 1998, awards a monthly grant of $10,000 and an annual grant of $25,000 to exceptional women-led startups. Meanwhile, the FedEx Small Business Grant provides both cash prizes and business services to innovative small businesses.
The Cartier Women’s Initiative Award and the Halstead Grant also offer substantial grant funding to women entrepreneurs. Both grant programs favor business plans that promise significant societal impact and provide a sustainable business model.
Additionally, women of color have an array of grant opportunities. The Fearless Fund, for instance, offers funding to startups owned by women of color. The SoGal Foundation also awards grants to Black women or nonbinary entrepreneurs.
Navigating the Application Process
Securing a business grant can often involve a rigorous application process. It begins with identifying the right grant opportunity for your business. Websites like grants.gov and grantsforwomen.org provide extensive lists of federal grants and other grant opportunities for women-owned businesses and minority-owned businesses.
The eligibility requirements vary between different grant programs. Nonetheless, you need more than a business idea, rather having a well-thought-out business plan is a common prerequisite. Some grants might also require your business to be certified as a woman-owned business by the U.S. Small Business Administration (SBA) or a nonprofit organization such as Women’s Business Enterprise National Council (WBENC).
Leveraging Government and Nonprofit Resources
The SBA offers a variety of resources for women entrepreneurs. The Office of Women’s Business Ownership, for instance, aims to level the playing field for women entrepreneurs, who still face unique obstacles in the world of business. The SBA’s Women’s Business Centers (WBCs) provide free mentoring and business development resources, while the Small Business Innovation Research (SBIR) program offers federal grants for early-stage businesses engaged in R&D with strong commercial potential.
The Tory Burch Foundation, a nonprofit organization, provides a Fellows program that offers grant money, networking opportunities, and mentorship for women entrepreneurs. The foundation also partners with Goldman Sachs for the 10,000 Small Businesses program, which is an investment amongst small business owners to help create jobs and economic development by providing greater access to business education, financial capital, and business support services.
Going Beyond Grants: Merchant Cash Advances
While grants offer a fantastic source of funding, the competition can be fierce, and securing these funds can take time. A merchant cash advance (MCA) provides an alternate funding option. MCAs offer an advance of cash based on a business’s future sales. As sales fluctuate, so too do the repayments, making them manageable during slower periods.
MCAs can be obtained quickly, making them a suitable choice for businesses needing immediate funding. Companies like The LCF Group is proud to have provided cash advances for countless women-owned businesses, helping to ensure that female entrepreneurs have multiple avenues to secure funding.
A Winning Combination: Networking and Mentorship
Beyond funding opportunities, networking and mentorship also play a pivotal role in the success of women-owned businesses. Organizations such as the National Association for the Self-Employed (NASE) and local chambers of commerce provide excellent networking opportunities.
Similarly, mentorship programs offered by the Tory Burch Foundation, SBA’s Women’s Business Centers (WBCs), and various nonprofit organizations help women business owners learn from seasoned professionals. The insights gleaned from these mentoring programs can make the journey of entrepreneurship less daunting and more rewarding.
In conclusion, while the path for women entrepreneurs has its unique challenges, a variety of grant opportunities, mentorship programs, and resources are available to make the journey smoother. The role of grants, merchant cash advances, and mentorship in fueling women’s entrepreneurship is undeniable. It is upon us to harness these resources and propel women-owned businesses to new heights of success and innovation.
