Line of Credit for Women-Owned Business

By Backd Business Funding, 22 September, 2022

Line of Credit for Women-Owned Business

Did you know that the United States has 12.3 million women-owned businesses? Or that women-owned businesses in the U.S. generate $1.8 trillion a year? These are just a few of the staggering numbers that show how women are a vital economic force, creating opportunities and growth. Speaking of growth, women started 1,821 net new businesses every day in 2019, with 64% of new women-owned businesses founded by women of color in the same time frame.

But despite these inspiring numbers, there are still disparities that exist and must be addressed, particularly when looking at funding for women-owned businesses. We’re exploring financial options for women-owned businesses, focusing on how a line of credit can help women entrepreneurs take their business to the next level.

What Qualifies as a Woman-Owned Business?

In order to qualify as a woman or women-owned business, the entity must be at least 50% owned, operated, and controlled by one or more women. 

Is a Woman Owned Business Considered a Minority Business?

While women are not generally considered a minority group, due to experiencing social inequalities and underrepresentation in certain industries, they are typically considered a disadvantaged group. As such, most women-owned businesses are included in the same category as minorities and veterans, especially by government agencies. 

Is There a Woman-Owned Business Certification?

Yes, there are several options for getting certified as a woman-owned business. For example, the U.S. Small Business Administration (SBA) offers an SBA women-owned business certification. This program helps small businesses owned, controlled, and operated by women to compete for federal contracts.

How Can a Woman Get Money To Start a Business or Expand an Existing Business?

It can be difficult in general to secure funding as an entrepreneur, let alone for individuals who may be facing prejudices, biases, or lack of societal support. Frustratingly, a report by the Senate Small Business & Entrepreneurship Committee found that despite women-owned businesses accounting for 30% of small companies, they receive only 4.4% of the total dollars in conventional small business loans. This translates to $1 for every $23 loaned. 

For women who are seeking money to start or expand their business, there are some options and opportunities that can be explored, like: 

  • Grants for women entrepreneurs

There are many grants that are specifically set aside for women who want to start or expand their business. is an excellent resource that compiles information about different grants in one convenient database. 

  • SBA loans

The Small Business Administration offers the 7(a) Loan Program, which is a financial help for small businesses with special requirements. The SBA also coordinates with the Office of Women’s Business Ownership to help women entrepreneurs through programs like business training, counseling, federal contracts, and access to credit and capital.

  • Venture funds with a social justice mission

Although women historically have received a disproportionately small share of venture capital funding, there are some investment firms that are attempting to fix this issue. For example, BELLE Capital USA is an early-stage fund that invests in high-growth companies in underserved capital markets across the USA. They seek to provide a premier source of human and financial capital to the underserved market of women-led companies. 

  • A business line of credit from a reputable company

So, it’s time to grow your woman-owned business. A line of credit is an excellent way to access funds that will allow you to expand your operations. Look for a trustworthy provider that works hard to empower and support small businesses. Here at Backd, we’ve provided over $1B+ of financial backing to over 10,000 businesses, helping them access the funding they need. 

What Is a Business Line of Credit?

A line of credit is a funding option that gives you access to a specified credit amount. It is a flexible option, allowing you to use part or all of the available credit with few limitations on the types of business expenses you can spend it on. Your lender will set your: 

  • Credit limit

  • Draw period

  • Interest rate

  • Repayment schedule

Backd offers a line of credit, usually with interest at a variable rate (meaning it will change as market conditions change). It is specifically useful for covering short-term needs. We saw firsthand how traditional financial institutions were not meeting the capital needs of businesses across the country, and our flexible funding options were created to solve this pain point. 

How To Get a Line of Credit as a Women Owned Business

The process to get a line of credit is fairly straightforward. 

  1. Determine how much funding you need.

  2. Find a lender.

  3. Check to see if you meet the requirements.

  4. Gather your information and complete the application.

  5. Submit your application.

Here at Backd, we have streamlined the process and made it even easier to apply. It only takes about 3 minutes to complete your application online, and you’ll get a decision back within 24 hours. Once you’re approved, you’ll be able to access a Backd dashboard to see how much money you have available, how much you’ve spent, and your line of credit limit. You can also easily view your repayment plan and get your funds reloaded automatically as you pay off your line of credit. 

We’re here to help you focus on what matters most: growing your woman owned business and continuing to be a driving force in your community. If you’re ready for the funding you need to expand, apply for a line of credit today. We are in the business of funding dreams and possibilities—it’s time to fund yours.