Raising capital is crucial for the success of any company. However, women-owned businesses face unique challenges when it comes to securing financing and investments. Despite the fact that women owned more than 40% of businesses in the U.S. by 2019, almost 98% of venture capital for new startups went to male founders in 2020.
Women business owners often struggle to qualify for loans at a disproportionate rate compared to their male counterparts. According to the Federal Reserve’s 2021 Small Business Credit Survey, only 12% of women business owners received the full financing amount they sought from lenders in 2021, compared to 14% of male-owned businesses. It’s also worth noting that 80% of women business owners and 82% of businesses owned by men sought Covid-19 relief funding through the Paycheck Protection Program (PPP) that year.
When business loans and equity financing prove difficult to come by, female entrepreneurs can consider business grants for women as an alternative. These grants offer an infusion of cash for your company that you never have to repay. While competition for these grants can be high, they are worth exploring if you qualify.
Private Small Business Grants for Women
- Amber Grant
- SoGal Startup Grant
- FedEx Small Business Grant Contest
- Cartier Women’s Initiative Award
- GrantsforWomen.org
- Eileen Fisher Women-owned Business Grant
- Tory Burch Foundation
- The Halstead Grant
- The Girlboss Foundation Grant
- National Association for the Self-Employed Growth Grants
- Grants.gov
- Small Business Innovation Research and Small Business Technology Transfer Programs
- Program for Investors in Microentrepreneurs (PRIME)
1. Amber Grant
At just 19 years old, Amber Wigdahl passed away before she had the chance to turn her business-related dreams into reality. In 1998, WomensNet founded the Amber Grant program in honor of this aspiring entrepreneur. The program offers monthly and year-end grants ranging from $10,000 to $25,000 to eligible women-owned businesses. You can apply online, and the selection committee reviews the applications it receives each month and announces the winners by the 23rd of the following month.
2. SoGal Startup Grant
The SoGal Startup Grant aims to support Black women entrepreneurs, who receive less than 0.5% of venture capital funding despite being the fastest-growing group of entrepreneurs. Winners of the SoGal Startup Grant receive a cash award of either $5,000 or $10,000, along with professional guidance to navigate the fundraising process. To be eligible, you must identify as a Black woman or nonbinary entrepreneur and own a legally registered business with a plan to seek investor capital.
3. FedEx Small Business Grant Contest
The FedEx Small Business Grant Contest was developed to support U.S. small businesses impacted by the Covid-19 pandemic. Grant recipients receive a grand prize of $50,000, along with additional credits of up to $7,500 to use at FedEx Office for business printing services. To be eligible, your U.S.-based small business must earn under $5 million in annual sales and have shipped goods in the preceding 12-month period. The application deadline for the 2022 grant contest is February 28, 2022.
4. Cartier Women’s Initiative Award
The Cartier Women’s Initiative founded an annual program in 2006 to empower female entrepreneurs. The program awards grants across 10 regions, totaling 30 grant awards. Each first-place awardee receives $100,000, each second-place awardee receives $60,000, and each third-place awardee receives $30,000. There is also a Science & Technology Pioneer Award, with the same award amounts, and a Diversity, Equity and Inclusion Award. Eligible businesses need to be woman-owned or woman-run, be in the early stages of development, have earned revenue from sales for at least one year, and meet at least one of the United Nations’s Sustainable Development Goals.
5. GrantsforWomen.org
GrantsforWomen.org is an online platform founded in 2000 to help women business owners find and research various grant and scholarship opportunities. The grant application process varies from one program to another, so you need to follow the instructions provided by individual organizations when you are ready to apply.
6. Eileen Fisher Women-owned Business Grant
The Eileen Fisher organization, a women’s clothing brand, awards $200,000 in grant funding each year to eligible women-owned businesses. Grants range from $10,000 to $40,000 each and are available to women entrepreneurs involved in various areas, such as promoting female participation in a sustainable economy and teaching women and girls how to adapt to climate change.
7. Tory Burch Foundation
The Tory Burch Foundation sponsors grants for women entrepreneurs. Alongside $5,000 business education grants, the foundation offers access to business capital, expert-led workshops, and a peer-to-peer network. The Women of Color Grant Program, sponsored by both The Tory Burch Foundation and the Fearless Fund, provides grants of $10,000 to $20,000 to women business owners of color. To be eligible, you must be a woman who owns the largest stake (at least 51%) in her business.
8. The Halstead Grant
The Halstead Grant supports silver jewelry makers—women and men—by offering a $7,500 start-up grant plus other benefits to grow their businesses. Semi-finalists may receive smaller cash grants of $250 or $500, along with expert help in promoting their businesses. To apply, you need to answer 15 business-related questions and submit your application and design portfolio images by the August 1 deadline.
9. The Girlboss Foundation Grant
The Girlboss Foundation offers grants to creative female entrepreneurs in the arts, design, music, or fashion industries. Winners receive $15,000 in funding for their projects and marketing-related benefits with newsletter and social media features by Girlboss.com. To apply, you need to have a women-owned business and follow the application process outlined on the Girlboss.com website.
10. National Association for the Self-Employed Growth Grants
The National Association for the Self-Employed (NASE) awards Growth Grants of $4,000 to women and men small business owners. The grant funds can be used for advertising and marketing, expanding facilities, hiring employees, or other business expenses. To apply, you must become a member of NASE, and the grant committee reviews applications once a quarter.
Federal Business Grants for Women
- Grants.gov
- Small Business Innovation Research and Small Business Technology Transfer Programs
- Program for Investors in Microentrepreneurs (PRIME)
11. Grants.gov
Grants.gov is a valuable resource for finding government and corporate grants for women business owners. You can browse the website for grants sponsored by the federal government or use the search feature to find grants specifically designed for women.
12. Small Business Innovation Research and Small Business Technology Transfer Programs
Although not specifically geared toward women, the SBIR and SBTT programs offer billions in grant funding annually. These grants aim to help small businesses partner with research institutions to develop sophisticated technology products. Women’s participation is encouraged, and you can apply by contacting a government agency with an open funding call that aligns with your business idea.
13. Program for Investors in Microentrepreneurs
The PRIME program funds local organizations that work with and foster growth for small businesses, particularly from disadvantaged communities. While the grants don’t go directly to businesses, you can contact one of the organizations that received a grant to access this funding.
How to Choose the Right Business Grant for Women
When choosing a business grant, it’s essential to review the eligibility criteria and consider the type of grant that suits your needs. Government grants often have tedious application processes, but the competition may be less intense. Corporate grants usually have easier requirements, but competition can be high. Take the time to find grants that you are eligible for to maximize your chances of success.
Other Financing Options for Women-owned Businesses
In addition to grants, there are various financing options available for women-owned businesses, including small business loans, business lines of credit, business credit cards, equity financing, crowdfunding, business acquisition loans, and SBA Loans. Explore these options to find the best fit for your business goals.
Bottom Line
Business grants provide a unique opportunity to access funding without the need for repayment. However, competition can be fierce. While applying for grants, it’s important to consider alternative financing or fundraising options if you’re unable to secure enough grant funds to reach your business goals. Remember to carefully review eligibility criteria and invest your time in applying for grants that align with your business. Good luck in securing the funding your business deserves!
