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Women's Business Ownership Please choose a question and select or press the enter key to reveal/hide the answer. To view both question and answers in this area follow this link. 1. Does SBA have grants for businesses? No. The SBA does not provide start-up grants or other grants to individuals or businesses. See Federal grant opportunities at http://www.sba.gov/expanding/grants.html . SBA does offer a variety of loan programs, which can be found at the following link: http://www.sba.gov/financing/indexloans.html. The SBA does have a grant program available to private, non-profit organizations to run women's business centers. These centers provide business training, counseling and other assistance to women business owners and women who want to start businesses. 2. How do I finance my business? Women entrepreneurs have many options available to them to finance their businesses. Due diligence and gathering the facts are your most important first steps. You need to determine how much capital is needed, available sources of funds, how to write a loan proposal, how to prepare financial statements, and other information. The following key links will be very helpful: http://www.business.gov/topics/finances/ and http://www.sba.gov/expanding/grants.html. 3. How do I get federal contracts? Federal contracts can be lucrative to any business. The first step is understanding how to successfully obtain such contracts. The SBA has prepared a Guide to Federal Contracts for Women. Guide to Federal Contracts for Women. Also, the government sponsors a web portal designed to assist women to sell to the federal government. The powerful portal can be accessed at: http://www.womenbiz.gov/. 4. How do I find a mentor? A business mentor can be very helpful to a starting or growing a business. SBA sponsors the WNET program (Women’s Network for Entrepreneurial Training) to help women entrepreneurs find mentors. More information about this program can be found at: http://www.wnet.bz/. 5. How do I sell overseas? Much information is available to women business owners who want to export. An excellent resource is a publication prepared by SBA’s Office of International Trade. It is titled, Breaking Into the Trade Game – A Small Business Guide to Exporting. The comprehensive publication can be found at: http://www.sba.gov/oit/info/Guide-To-Exporting/BITG3rd.pdf. 6. Is there help for women with special needs? Information and resources for women with special needs can be accessed at: http://http://www.sba.gov/ada/. 7. Is there special help for young women entrepreneurs? The future of American enterprise is being shaped by young people of today who are filled with dreams, have a passion for change, hope for the future and a desire to succeed. Pursuing business knowledge at an early age is an important ingredient for future success. The following resources are designed specifically for young people who are interested in following their entrepreneurial dreams. Teen Entrepreneur Guide Discover Business YoungBiz Kids Learning Programs Center for Entrepreneurial Leadership 8. Is help available for business owners after a natural disaster? Assistance is available at: http://www.sba.gov/DISASTER/. 9. What is the Women-Owned Small Business (WOSB) Procurement Program? The Federal Acquisition Streamlining Act of 1994 (P.L.103-355) (FASA) established the government wide goal for participation by small business concerns owned and controlled by women at not less than 5% of the total value of all prime contract and subcontract awards for each fiscal year. The WOSB Procurement Program has a required goal set by law, but there are no set-aside procurement programs or incentives for awarding a contract to a woman-owned small business. Therefore, at the U.S. Small Business Administration (SBA), we are determined to work with other federal departments and agencies to establish aggressive goals and to develop meaningful initiatives in cooperation with other SBA program areas to ensure that the goal for WOSB is achieved. SBA is actively working to foster women’s share of the Federal marketplace. At SBA we are implementing initiatives that will help increase women’s share of the Federal procurement dollars, and we are actively searching for new and innovative methods. Following are the current WOSB Procurement Initiatives underway at SBA to help women-owned small businesses do business with the federal government and meet the government wide goal established by FASA. 10. How does the federal government define a "women-owned small business"? The Federal Acquisition Regulations (FAR) defines a "women-owned small business concern" in Part 19.001 Definitions, as follows: "Women-owned small business concern means a small business concern—(a) which is at least 51 percent owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (b) whose management and daily business operations are controlled by one or more women." 11. Is there any advantage to being a woman-owned business when attempting to do business with the federal government? Because of the 5 percent procurement goal for women established by FASA, agencies have a strong incentive to look for qualified women-owned businesses when filling contractual needs. Most federal agencies have designated a point of contact for women business owners in the Offices of Small and Disadvantaged Business Utilization (OSDBUs). These contacts, or the OSDBUs, can help you determine the appropriate procurement personnel to whom you should market. Also, you can request information on procurement fairs, agency procurement forecasts, and other research that will help you profit in the federal marketplace. SBA ON-LINE FOR LISTINGS: 1-800-697-4636. 12. Must a woman-owned small business be certified in order to do business with the federal government? The federal government does not require any formal certification for women-owned small businesses that are proposing as prime contractors on federal procurements. If your business meets the definition, as stated in question 2, and you are submitting a proposal for Federal procurement, you can "self-certify." The reason that there is no certification requirement for prime contracts is because there are no preference programs to award prime contracts to women-owned small business. However, if you are submitting a proposal for a federal subcontract (and sometimes in the private sector as a prime) the prime contractor may require certification that your business is in fact woman-owned. NOTE: To self-certify your firm as a WOSB with the federal government, you must meet the definition listed in FAR 19.001. If you are interested in checking on the requirements for WOSB certification, you can contact the following organizations regarding the procedures and benefits of being certified as a woman-owned business. Women's Business Enterprise National Council 1120 Connecticut Avenue, NW, Suite 950 Washington, DC 20036 Phone: (202) 872-5515 Fax: (202) 872-5505 Internet: http://www.wbenc.org/ National Association of Women Business Owners Corp. 1411 K Street, NW, Suite 1300 Washington, DC 20005-3407 Phone: (202) 347-8686 Fax: (202) 347-4130 Internet: http://www.nawbo.org 13. What type of training is available for women interested in starting or expanding their businesses? The SBA offers current and potential businesses access to a variety of services and resources, including pre-business workshops, and technical and management assistance. An excellent resource for these programs is the Service Corps of Retired Executives. SCORE volunteers provide expert advice and business counseling based on their many years of firsthand experience and shared knowledge on virtually every aspect of business. To locate the nearest SCORE volunteer call the SBA Answer Desk at 1-800-U-ASK-SBA or go to www.sba.gov. In addition, SBA offers specific assistance to women-owned businesses through women's business ownership representatives in SBA district offices. Your WBOR will be able to inform you about local resources and schedules of specific SBA programs that may be useful to you. To locate the nearest WBOR, call the SBA Answer Desk at 1-800-827-5722 or go to www.sba.gov. You may want to check the SBA home page for business resources such as small business development centers (SBDCs) and business information centers (BICs) in your area. The SBDC Program is designed to provide up-to-date counseling, training, and technical assistance in all aspects of small business development. The BICs are a resource with counselors, business reference material, and computer software to help you with all aspects of starting or expanding your business. You can locate the closest SBDC or BIC on the Internet at: www.sba.gov and click on "Local SBA Services." The SBA's Online Women's Business Center (www.onlinewbc.gov), is a state-of-the-art Internet site to help women expand their businesses. This free, interactive Web site, offers women information about business principles and practices, management techniques, networking, industry news, market research and technology training, free, online counseling, and hundreds of links to other sites, as well as information about the many SBA services and resources available to them. 14. How can I get a grant or loan to start up my business? There is no federal grant money for individual business owners. Even though many publications and talk shows publicize grants to small businesses, the only grants available are for non-profit women’s business centers that provide training for women who want to start or expand their businesses. The other grant program is for research and development for technology-based products and services for the government. However, the SBA has an excellent financial assistance program, which encourages bankers to help small businesses. This "loan guaranty" program is the agency's priority. Apply for a business loan at your bank. If financing is unavailable on reasonable terms from the lender, ask the bank to submit your loan application to the SBA for consideration. In partnership with your local bank, the SBA may offer a government guaranty of a loan to be made by that lender. SBA programs are especially valuable for new business start-ups and in instances where collateral is weak and/or a longer repayment term is needed. The SBA loan application package can be as simple as a one-page form, and the SBA can approve an application in 1-7 days. Credit-worthy potential small business owners and existing small business owners who require capital to start or expand their business may find that SBA's financial assistance programs can help them secure the financing that they need. SBA has no funding for direct loans. For information on SBA loan programs contact the SBA office closest to you or call the SBA Answer Desk at 1-800-8-ASK-SBA. Information is also available on the SBA Website at: www.sba.gov ; click on "Financing" to see the variety of loan programs that are available through the SBA. Once you choose a loan program, you will see how the program works and whom to contact for more information about that specific loan program. 15. Where do I get information on small business taxes? Assistance can be found at the IRS Web site: http://www.irs.treas.gov/. 16. Do I need my own money to start a business? Yes. Any lenders or investors want to see that you have a considerable amount of your money in the business: your money is at risk as much as their money. If a business owner does not have owner equity in the firm, it is more tempting to walk away from a failing business because there is little to lose. 17. Where do I get "start-up" money? The answer will vary depending on the amount of money you need, the length of time you have been in business, your geographic location, your personal credit rating, your ability to provide collateral, the viability of your business idea, whether you are looking for debt or equity financing, etc. Explore the following sources of capital: banks (developing a relationship with a bank and a banker is key); small business development centers (while they may not have access to funds, they will almost certainly have resources and contacts); the "Friends and Family" bank (this is probably the most common and most successful source of funds for start ups); community development centers (many of them have money to lend); venture capital (for those who don't mind giving up "control" of their business); angel investors; the use of supplier/vendor financing (have a supplier extend 120 – day terms instead of the usual 30 while you extend only 30-day terms to your customers); seller financing; end-user funding (having the ultimate customer finance the research and development of the product). The SBA also offers the Prequalification Loan Program, which may permit you to pre-qualify for an SBA loan guarantee before applying to a financial institution. SBA approval is based on ability to pay, not collateral. Another option is the SBA Microloan Program, which provides short-term start-up or expansion loans of up to $25,000. Loans are made through non-profits with experience in lending and technical assistance. For more information, see www.sba.gov, and click on "Financing." 18. Are there other sources of financing for start-up businesses? Yes. First consider your personal resources. Ask your bank about a personal loan and remember that a home equity loan is still the cheapest and fastest loan to obtain. Next, approach family and friends – those who know you best and who want to see you succeed. Show them the opportunity of investing in your business. Let them have an equity stake in your business, or if they prefer to lend you the money, write up an informal contract and pay back the loan as if you were working with a bank. Factoring companies provide money lent upon receivables. If you have a product or service that you have already provided and billed for, but you do not expect payment for several weeks, a factoring company will quickly provide you up to 80 percent of the total invoice. This cash helps to cover the cash flow of the company until you get paid. 19. Should I go to a venture capitalist? It depends on the type of business you own. Venture capital firms want to invest in companies where they can invest over $1 million and receive a 30 percent return in three to five years. 20. I am working on a new computer theory and need research funds to continue my work. How can I get financing for my project? The Small Business Innovation Research (SBIR) program may be useful. It is accessed electronically, through the SBA Online Bulletin Board. To access the SBA online Bulletin Board, dial: l-800-697-4636. To access this information, go to the SBA Web site at: www.sba.gov/. If you do not have access to a personal computer, you may be able to find Internet capability at your public library or local university. 21. I have been rejected by my bank and I am looking for a loan for a start up business in my home. What do I do? We would suggest that you contact a small business development center or women’s business center in your area for help in strengthening your current business plan and loan application. Consider submitting a loan application to another bank, or work with your SBA district office to prequalify for an SBA guaranteed loan. If the amount of money that you need is less than $25,000, consider SBA's Microloan Program. This program was created to reach new markets, such as women, minorities, and businesses in rural and urban areas. For more information on SBA’s small business development centers and women’s business centers, see the SBA’s Website, www.sba.gov or the Online Women’s Business Center at www.onlinewbc.gov. 22. I recently received a small business loan because my business is expanding. What other services can you provide? If you have been in business at least one year, check with your local SBA office about the Women's Network for Entrepreneurial Training (WNET). This program was launched in 1990 and was designed to match successful women business owners with newer women business owners to share their experiences and expand the network for women business owners. You may also investigate organizations in your community, such as the National Association of Women Business Owners (NAWBO), National Association of Female Executives (NAFE), and the Business and Professional Women (BPW). Your Chamber of Commerce may also be able to identify programs of interest and services available in the area. 23. How do I determine if my product/service will sell? Do I need to hire someone else to do my market research? There is no easy answer to this question. Generally speaking, there are many low-cost or free resources that can assist you in your market research. For example, many public libraries have Info-Connect services that can provide valuable information. The Department of Commerce has census data available. You can certainly conduct their own market surveys -- both written and verbal (by telephone or mail). You must understand your competition (their strengths and weaknesses and how their business stacks up); you must understand what your business's "added value" is -- what positively distinguishes your product or service from your competition's. You may conduct your own informal focus groups to determine if there is a demand for your product or service and/or contact the association(s) under which your product or service falls for information on markets (many associations have departments that collect market data on an ongoing basis). You may even choose to hire an outside market research firm, but in many cases, this is not necessary. SBA Home Page | FAQ Home | Contact Us | Privacy
Please choose a question and select or press the enter key to reveal/hide the answer. To view both question and answers in this area follow this link.
The SBA does have a grant program available to private, non-profit organizations to run women's business centers. These centers provide business training, counseling and other assistance to women business owners and women who want to start businesses.
Also, the government sponsors a web portal designed to assist women to sell to the federal government. The powerful portal can be accessed at: http://www.womenbiz.gov/.
The following resources are designed specifically for young people who are interested in following their entrepreneurial dreams.
Teen Entrepreneur Guide
Discover Business
YoungBiz
Kids Learning Programs
Center for Entrepreneurial Leadership
The WOSB Procurement Program has a required goal set by law, but there are no set-aside procurement programs or incentives for awarding a contract to a woman-owned small business. Therefore, at the U.S. Small Business Administration (SBA), we are determined to work with other federal departments and agencies to establish aggressive goals and to develop meaningful initiatives in cooperation with other SBA program areas to ensure that the goal for WOSB is achieved.
SBA is actively working to foster women’s share of the Federal marketplace. At SBA we are implementing initiatives that will help increase women’s share of the Federal procurement dollars, and we are actively searching for new and innovative methods. Following are the current WOSB Procurement Initiatives underway at SBA to help women-owned small businesses do business with the federal government and meet the government wide goal established by FASA.
"Women-owned small business concern means a small business concern—(a) which is at least 51 percent owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (b) whose management and daily business operations are controlled by one or more women."
Most federal agencies have designated a point of contact for women business owners in the Offices of Small and Disadvantaged Business Utilization (OSDBUs). These contacts, or the OSDBUs, can help you determine the appropriate procurement personnel to whom you should market.
Also, you can request information on procurement fairs, agency procurement forecasts, and other research that will help you profit in the federal marketplace. SBA ON-LINE FOR LISTINGS: 1-800-697-4636.
NOTE: To self-certify your firm as a WOSB with the federal government, you must meet the definition listed in FAR 19.001.
If you are interested in checking on the requirements for WOSB certification, you can contact the following organizations regarding the procedures and benefits of being certified as a woman-owned business.
Women's Business Enterprise National Council 1120 Connecticut Avenue, NW, Suite 950 Washington, DC 20036 Phone: (202) 872-5515 Fax: (202) 872-5505 Internet: http://www.wbenc.org/
National Association of Women Business Owners Corp. 1411 K Street, NW, Suite 1300 Washington, DC 20005-3407 Phone: (202) 347-8686 Fax: (202) 347-4130 Internet: http://www.nawbo.org
In addition, SBA offers specific assistance to women-owned businesses through women's business ownership representatives in SBA district offices. Your WBOR will be able to inform you about local resources and schedules of specific SBA programs that may be useful to you. To locate the nearest WBOR, call the SBA Answer Desk at 1-800-827-5722 or go to www.sba.gov.
You may want to check the SBA home page for business resources such as small business development centers (SBDCs) and business information centers (BICs) in your area. The SBDC Program is designed to provide up-to-date counseling, training, and technical assistance in all aspects of small business development. The BICs are a resource with counselors, business reference material, and computer software to help you with all aspects of starting or expanding your business. You can locate the closest SBDC or BIC on the Internet at: www.sba.gov and click on "Local SBA Services."
The SBA's Online Women's Business Center (www.onlinewbc.gov), is a state-of-the-art Internet site to help women expand their businesses. This free, interactive Web site, offers women information about business principles and practices, management techniques, networking, industry news, market research and technology training, free, online counseling, and hundreds of links to other sites, as well as information about the many SBA services and resources available to them.
Credit-worthy potential small business owners and existing small business owners who require capital to start or expand their business may find that SBA's financial assistance programs can help them secure the financing that they need. SBA has no funding for direct loans.
For information on SBA loan programs contact the SBA office closest to you or call the SBA Answer Desk at 1-800-8-ASK-SBA. Information is also available on the SBA Website at: www.sba.gov ; click on "Financing" to see the variety of loan programs that are available through the SBA. Once you choose a loan program, you will see how the program works and whom to contact for more information about that specific loan program.
Explore the following sources of capital: banks (developing a relationship with a bank and a banker is key); small business development centers (while they may not have access to funds, they will almost certainly have resources and contacts); the "Friends and Family" bank (this is probably the most common and most successful source of funds for start ups); community development centers (many of them have money to lend); venture capital (for those who don't mind giving up "control" of their business); angel investors; the use of supplier/vendor financing (have a supplier extend 120 – day terms instead of the usual 30 while you extend only 30-day terms to your customers); seller financing; end-user funding (having the ultimate customer finance the research and development of the product).
The SBA also offers the Prequalification Loan Program, which may permit you to pre-qualify for an SBA loan guarantee before applying to a financial institution. SBA approval is based on ability to pay, not collateral. Another option is the SBA Microloan Program, which provides short-term start-up or expansion loans of up to $25,000. Loans are made through non-profits with experience in lending and technical assistance. For more information, see www.sba.gov, and click on "Financing."
Factoring companies provide money lent upon receivables. If you have a product or service that you have already provided and billed for, but you do not expect payment for several weeks, a factoring company will quickly provide you up to 80 percent of the total invoice. This cash helps to cover the cash flow of the company until you get paid.
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