Hey, Women! Learn to Start Small Business Using Government Loans


Women entrepreneurs are increasing with competitive rate and each year, a huge number of small businesses with female innovators enter the business world. Everyone knows that economy does not remain stable and to prevent you from flowing with it, one has to have some backup plan ready. Many people believe that one of the best ways to ensure proper and constant flow of income is to have a job, but let’s be honest; job market is not as competitive as it used to be, especially after the last economic collapse. The best way to have financial security and a constant flow of income coming so that none of your works are interrupted due to lack of finances.

Balancing The Account

While there are many women that are rich with ideas and potential to start a business, many of them are left behind due to the lack of finances. But this does not stop female entrepreneurs from following their dreams, hence, we have a huge number of women business owners in our society today. Our society is male dominated and it is reflected in many things also including the way banks treat female and minority women while granting them business loans, often, the process is quite time-consuming and stretched.

Small Business Loans for Women

People are usually interested in grants because grants are not required to be returned, which means that unlike a bank loan that requires a refund, grant is a sort of free money and therefore, very desirable. Besides being desirable, small business loan is also very competitive and hard to get as you have to compete with lots of other businesses and candidates for the desired grant. Many organizations like :

The Eileen Fisher Women-Owned Business Grant Program,

InnovateHER: 2015 Innovating for Women Business Challenge,

Idea Café Small Business Grant and Small Business Innovation Researchgive four to five annual small business funding to startups and women owned businesses.

If you are lucky enough to have the acceptance for grant, you will have to go through a series of steps before finally getting your object of desire. Before applying for a grant, there are firm rules and requirements and you have to meet them all before being considered for the grant. After receiving the grant, you will have to show and report to the granting authority about your usage of the loan and the way you have used it in your business and its development. The application process is really long and the applicant needs to have its business plan for next five years to qualify.

 Acquire Small Business Funding for Women

Once you have acquired the grant, or loan, it is really important that you use the money in a real calculated manner and try to cut as much expenses as possible. Majority of the businesses are not successful in the long run due to the lack of finances and therefore, it is wise if you keep as much as six months expenses in bank. There are many banks that prefer the loan bearer to have this much of amount in the account but still, there are some organizations that invest in ideas and offer grants or loans.

There are many organizations that offer grants and loans to businesses owned by women, still there are some associations that cater to the financial needs of women belonging to minority group.

To be on safe side, calculate your startup cost and add another 20% to it and keep aside, ideally the amount should be enough to keep you going for the first six months of your business’ inception. If you were a business student, you must be knowing that businesses need some time to establish and time to start making money on its own. You can get your required money from a number of sources, while banks prefer the borrowers who already have a stable income flow and so, many entrepreneurs do not really match the respective clause. It is important that you keep other options and sources in mind just in case you need to use them.

Being a woman you may have to face hurdles but if you are a female belonging to an ethnic or minority group, brace yourself, you may be facing difficulties more than this. My aim is not to scare you or convince you to drop your idea of having a business, but I aim to prepare you for any situation you may have to face. There are many organizations that offer grants and loans to businesses owned by women, still there are some associations that cater to the financial needs of women belonging to minority group.

 Small Business Loans for Minority Women

Minority Business Development Agency, a federal society, is directed towards assisting minority business personnel, especially women, appropriate funding to start a business of their own. It has a network of other centers and work to provide loans to women to ethnic groups and other business supports like marketing, technical and financial help, business plans and management. Finding an agency that works specifically to answer unique needs of minority and female business entrepreneurs is not difficult anymore. Government small business loans for women allow women from all ethnic groups to fulfill their desire of having a successful running business without worrying to repay.

Author Bio

 David Park is a professional digital media marketer with a dynamic personality and skills. Creative designing and writing are his passions and he enjoys being an active part of the online world. At present, he is managing all the creative works for www.onelogodesign.com. You can follow him on Twitter @onelogodesign.

 

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