What are Woman-Owned Business Benefits?
There are several benefits for women-owned businesses. In most cases, you’ll have to get certified to qualify for the various programs and opportunities afforded to female entrepreneurs. Networking opportunities are essential for women-owned businesses to level the playing field.
Here are some opportunities made available to certified woman-owned businesses:
- Lead generation for opportunities to submit contract bids.
- Increased networking opportunities, such as networking databases and events.
- Can attract new investors and business partners.
- Access updated supplier lists for diversity & procurement contracts.
- Government contracting opportunities to help propel your business forward.
- Possible business tax benefits.
- Access to small business loans & funding programs for women business owners.
- Use of the WBE seal on marketing materials (WBE certification only).
How do you get certified as a Women-Owned Small Business?
Women-owned companies can be certified if they have at least 51% female ownership and management. Women-led businesses are often perceived as more committed to diversity and inclusion in their leadership teams. Several certification programs help women business owners gain more market access in their respective industries.
There are two primary certifications for women-owned businesses.
Women’s Business Enterprise (WBE)
This certification helps get private enterprises and state and local government contracts and grants. The eligibility requirements are:
- One or more women own at least 51% of the company.
- A for-profit company operating in the U.S.
- Owned by women who are U.S. citizens or legal residents.
- Governed by a board of women (where applicable).
Women-Owned Small Business (WOSB)
This designation helps with getting federal government grants and contracts. There is a subset of the certification, Economically Disadvantaged Women-Owned Small Business (EDWOSB). EDWOSB eligibility requirements are:
- Meet all the requirements of the women’s contracting program.
- Be owned and controlled by one or more women, each with a personal net worth of less than $750,000.
- Be owned and controlled by one or more women, each with $350,000 or less in adjusted gross income averaged over the previous three years.
- Be owned and controlled by one or more women, each with $6 million or less in personal assets.
- The Fair Market Value of all your assets must be under $6 million.
There are several ways for a woman-owned small business to apply for certification. You can visit the U.S. Small Business Administration (SBA) to apply for certification.
Female entrepreneurs can also go through the Department of Veterans Affairs Center for Verification and Evaluation (CVE) or a third-party certifier (TPC). The four options for TPCs are:
- Women’s Business Enterprise National Council (WBENC).
- National Women Business Owners Corporation (NWBOC).
- U.S. Women’s Chamber of Commerce (USWCC).
- El Paso Hispanic Chamber of Commerce (EPHCC).
What are the advantages of Women-Owned Business certification?
Women-owned businesses bring fresh perspectives and innovative solutions to the business world. Getting certified as a WBE, WOSB, or EDWOSB opens the door to new opportunities for business growth. Here are some of the main benefits.
Private Enterprise Opportunities
Some private businesses are incentivized to do business with women-owned companies through discounts or tax breaks. Some businesses with federal contracts are required to do business with WBE-certified companies. It can also help attract new investors. Certification registers your business as a preferred supplier in diversity programs.
Local & State Government Contracts
Many local and state government agencies attempt to award certain contracts to WBE-certified businesses.
Federal Government Contracts
Many federal agencies are required to provide a minimum percentage of contracts to women—and minority-owned businesses. Each year, the federal government sets aside 5% of all contracting dollars specifically for women-owned businesses. To qualify for government contracts, women-owned businesses must have at least 51% female ownership.
WOSB or EDWOSB-certified businesses can compete for any contract from federal government agencies, but some are exclusively available to female business owners. The SBA provides a comprehensive list of participating federal programs. Some women-owned businesses will also qualify for the SBA (8)a Business Development Program.
Educational and Networking Opportunities
WBE-certified companies can join WBENCLink 2.0, an online network database of women-owned businesses that corporate and government members can access nationwide. In addition, you can join various in-person or virtual female entrepreneur summits and networking events. In some areas, there might be a local women’s small business association you can join.
What grants are available for Women Business Owners?
Multiple private, federal, state, and local grant opportunities exist for women-owned small businesses. However, these grants come with fierce competition. Ensure you do your due diligence on eligibility requirements, application deadlines, and other factors when applying for a grant.
Visit GrantsForWomen.org for various opportunities. While it does list some for-profit grants, the majority are for non-profit organizations. Several private grants are available to for-profit businesses.
The application process and program benefits vary between grants. Many grants or tax credits are designed to help small businesses create or retain jobs.
You can also visit grants.gov, SBA.gov, or your local SBA office for more information on available grant opportunities and the federal contracting program. Here’s a list of some of the most sought-after business grants for female entrepreneurs:
- Amber Grants.
- Cartier Women’s Initiative Award.
- The Halstead Grant.
- Tory Burch Fellows Program.
Some local grant opportunities include:
- The Women’s Fund of Central Ohio.
- The Boston Women’s Fund Grants.
- The Chicago Foundation for Women Grants.
Frequently Asked Questions
Here are the most common questions about the benefits of being a female business owner.
What resources are available for Women Entrepreneurs?
There are plenty of resources to help women entrepreneurs launch and grow their businesses. The community tends to be inclusive, and many successful woman business owners give back by providing tools, tips, and resources for aspiring entrepreneurs.
Many programs for women entrepreneurs include invitations to educational events and mentorship opportunities. Networking programs help women business owners connect with other leaders and field experts. Multiple organizations provide business training for women entrepreneurs.
The SBA operates the Women’s Business Centers (WBC), providing training, counseling, and other resources for women entrepreneurs. Small Business Development Centers (SBDC) frequently provide training and mentorship for women entrepreneurs. The National Association of Women Business Owners (NAWBO) provides mentoring and educational services for women-owned businesses.
Here are some of the most beneficial networking and support resources for women business owners.
- National Women’s Business Council
- SBA’s Office of Women’s Business Ownership
- The BOSS Network
- Dell Women’s Entrepreneur Network
- Ellevate
- Hello Fearless
- Savor the Success
- Women Impacting Public Policy
- The Vinetta Project
- WEConnect International
Are there tax benefits for Women-Owned Business?
Women-owned businesses can receive reduced tax liabilities for federal or state grant-funded projects. However, WBE and WOSB-certified businesses don’t receive any direct tax breaks. Some local and national agencies provide tax credits and waivers for women-owned business investors.
However, federal and state governments encourage private sector companies to do business with minority-owned businesses by providing special tax incentives. Many tax credits aim to increase job creation.
Tax Credit Opportunities for Women-Owned Businesses
Women-owned businesses can potentially qualify for various tax credits to help lower taxes and increase profitability. Check to see if your business qualifies. Economic development agencies in each city and state could help you find specific programs. This could also include capital credit for investments.
The New York Research and Development tax credit is one option. Women-owned businesses in New York with R&D facilities can access up to 9% corporate tax credit. The dependent care tax credit allows employers to offset some of their childcare expenses against their state tax liability.
The New Markets Tax Credit (NMTC) program stimulates economic growth in low-income areas. Women-owned businesses could potentially qualify.
What small business loans are available for Women Business Owners?
One of the most well-documented challenges for women-owned businesses is securing funding through small business loans. Women entrepreneurs face more challenges in accessing traditional financing than their male counterparts.
Many traditional lenders (commercial banks and credit unions) hesitate to issue small business loans. That hesitancy disproportionately affects women-owned companies. Some women-owned businesses will eventually find financing through traditional lenders, but other options are available.
However, with 42% of all U.S. businesses being women-owned, representing $1.9 trillion in revenues, not lending to this sector threatens the overall economy. Private organizations are increasingly interested in funding women-led startups through investments. The SBA Prequalification Pilot Loan Program helps make loan applications more successful for women-owned businesses.
Many lenders and lending marketplaces, like UCS, recognize the need for financing and are proud to offer small business loans for women business owners. Paying off small business loans can help build a positive credit history, leading to increased financing opportunities in the future.
Female small business owners can access funding with the following features through our lending network:
- Funding amounts: $1k – $10 million.
- Rates: Starting at Prime + 2.75%.
- Terms: 3 months – 25 years.
- Funding times: 48 hours – several weeks, depending on the loan.
Available small business loans for women include:
- Bad credit business loans
- Business lines of credit
- Business term loans
- Equipment financing
- A/R factoring
- Merchant cash advances
- Revenue based financing
- SBA loans
- Working capital loans
- ERTC loans
Woman-Owned Business Benefits – Final Thoughts
Many resources and programs are designed to help women business owners break through the barriers that traditionally held them back. One of the best ways to access those resources is to get a women-owned business certification.
Certification allows women entrepreneurs to access new business opportunities, including federal or state grants, partnerships with private sector organizations, and networking and educational resources. In addition, several loan programs for women-owned businesses exist to help overcome challenges in getting funding.
Contact us if you have more questions about female entrepreneurship or want to apply for a small business loan. Our loan experts can help you find the best funding options for your business goals.
