According to The Office of Women’s Business Ownership, women own nearly 40% of all firms in the United States and the 8 million women-owned firms employ 18.5 million workers. Despite efforts to level the playing field for women entrepreneurs, most women still face hurdles in the world of business – particularly when it comes to financing. According to Susan Peterson, The National Foundation for Women Business Owners (NFWBO) Chair, "Women business owners still have lower levels of available credit than their male counterparts."

Below is an overview of various financing options available to women as well as a summary of specialized small business loans targeted toward women.

• Own Pockets – This capital can come from sources such as savings accounts, a line of credit, home equity loans, or credit cards.
• Family & Friends – The next best bet for raising money is to seek assistance from family or friends who are willing to invest in your future.
• Small Business Loans – The Small Business Administration (SBA) is a governmental agency which provides loan programs for small businesses. The agency works with intermediaries, banks, and other lending institutions to provide loans and venture capital financing to small businesses unable to secure financing through normal lending channels. The 7(a) Loan Guaranty Program is one of the SBA’s primary lending programs. However, there are a number of specialized loan programs which are outlined below.
• Incubators – The National Business Incubation Association is a private, non-profit organization which strives to produce financially viable and freestanding businesses in local communities. Established organizations serve as incubators – nurturing young firms and providing hands-on management assistance, access to financing and exposure to critical business services.
• Angel Investors - The Angel Capital Electronic Network (ACE-Net) is a nationwide Internet-based listing service that provides information to angel investors on small, dynamic, growing businesses seeking $250,000 to $5 million in equity financing.
• Venture Capitalists - Although a source of capital, less than 1% of start-up firms obtain a portion of the money for starting their business from Venture Capitalists (VCs). The majority of VCs are seeking high risk, high return organizations for investment. In assuming the risk associated with their investment, many VCs are seeking a substantial stake in the business.
• Corporate Partnering - Capital may also come from a larger company in a similar line of business that understands the opportunity for the product or service you are offering.

• Minority and Women Prequalification Loan Program - This pilot program is administered by the SBA and uses intermediaries to assist prospective women borrowers in developing viable loan application packages and securing loans. Eligible businesses must be 51% owned, operated and managed by women; annual sales for the preceding three years must not exceed $5 million; and the business must employ fewer than 100 employees. The maximum amount of the loan under the women’s program is $250,000. The SBA will guarantee up to 80% for loans up to $100,000 and 75% for loans over $100,000. A listing of pilot sites for this program can be found on the SBA web site at http://www.sba.gov/
• Microloan Program - This program is administered by the SBA and was developed to increase the availability of very small loans to prospective borrowers. The SBA makes funds available to nonprofit intermediaries who make loans to eligible borrowers in amounts ranging from $100 to a maximum of $25,000.

Of the 36 web sites reviewed, the following will be most beneficial for women seeking to explore and understand the options available for financing their small business.

• http://www.sbaonline.sba.gov/financing

• http://www.onlinewbc.org

• http://ace-net.sr.unh.edu

• http://www.nbia.org

• http://www.score.org