Women business owners are an integral part of the U.S. economy and the continuation of our prospering society.

Here’s why we are grateful.

A survey by the National Association of Women Business Owners (NAWBO) shows that over 11.6 million firms in the United States are owned by women. These privately held firms employ nearly 9 million people, contributing to 8% of employment and 4.2% of revenues. That’s a staggering $1.7 trillion in sales across the US!

We’ve had the honor of working with many businesswomen who’ve rolled up their sleeves and pushed through irrespective of how challenging recent economic times have proven to be.

We understand your journey—the inspiring commitment to long hours, family and social life sacrifices, and demonstrated grit and perseverance to starting your businesses and making them thrive.

And that’s why we’re here.

Who We Are And What We Do

Business Finance Capital (BFC) is a Certified Development Company (CDC)—a non-profit corporation that promotes economic development within its community. We proudly serve the Greater Los Angeles business community, especially women entrepreneurs, through initiatives such as helping with business training needs, counseling resources, and obtaining SBA 504 loans. We are dedicated to helping women entrepreneurs, aspiring and established, be more successful.

SBA and Loans

The Small Business Administration (SBA) is a US-owned federal agency fully committed to encouraging and helping women small business owners navigate through the challenging world of business and entrepreneurship.

To start, maintain, and grow a company requires hard work and capital. This is true for all businesses, no matter their niche. According to an HSBC survey, acquiring business loans and raising capital is a tough process for all small businesses, especially women-owned. The survey suggests that 46% of female entrepreneurs experience some form of bias when raising funds, and they secure 8% less capital than their male counterparts. This challenge leads many businesswomen to utilize their savings and turn to their friends and family for assistance.

To establish an even break and promote small businesses, SBA has introduced several programs and resources (counseling and capital). Entrepreneurs can use SBAs competitive rates for loans for long-term, fixed-rate financing to purchase or repair real estate, equipment, machinery, and other assets.

Here’s everything you need to know about SBA’s different programs and resources.

Office of Women’s Business Ownership (OWBO)
The Office of Women’s Business Ownership helps entrepreneurs through programs coordinated by SBA’s district offices. They will help through Women’s Business Centers (WBCs) centers that provide training, counseling, federal contracts, or access to credit and capital.

Businesses that receive assistance from WBCs overcome unique obstacles in the business world, thus enjoying a significantly better success rate than those lacking a similar support structure.

You can easily contact a dedicated team at Business Finance Capital if you are not near a WBC. We’ll be thrilled to help with your needs, be it finances or training so that you can do what you do best—mold and nurture our world.

SBA 8(a) Business Development Program
The SBA 8(a) Business Development Program limits competition by reserving specific contracts for businesses participating in the initiative. This helps level the playing field and encourages an equal distribution of opportunities.

Here’s what you can expect:

  • Compete for sole-source contracts in the program.
  • Advice from a Business Opportunity Specialist to understand how to navigate federal contracting.
  • SBA’s Mentor-Protege Program to explore joint venture opportunities with established businesses.
  • Receive management and technical assistance, including business training, counseling, marketing assistance, and high-level executive development.

Should this sound like an exciting opportunity to you, contact the Business Finance Capital team and learn more about how you can grow your business by leveraging the SBA loan program.

SBA 504 Loan Program
This program is ideal for all business owners if they need assistance with resources to launch their business, expand it, or acquire commercial real estate and equipment.

The SBA 504 makes financing more accessible as you have affordable down payments and long-term, fixed interest rates that are lower than the average loan. It also proposes a lower risk to lenders through a shared financing structure!

Here’s the breakup of the loan structure:

  • Borrower

As the business owner, you only have to pay 10% of the project costs using cash or prepaid project-related expenses. 15-20% equity is required for startup businesses and buying single-use properties such as car washes, hotels, and gas stations.

  • CDC

CDCs such as Business Finance Capital make an SBA-guaranteed loan of up to 40% of total project costs including the SBA loan fees. The total loan amount is dependent on business or project type and is secured by a 2nd Deed of Trust.

  • Lender

A bank, credit union, or other non-bank lender provides a commercial loan that is secured by the 1st Deed of Trust. It typically amounts to 50% of the total project costs.

The SBA 504 Loan is beneficial to you because it requires you only 10% of the project’s cost as a down payment. This minimal down payment will help your small business preserve cash. Additionally, the competitive interest rates and friendly maturity terms minimize your monthly payment!

Women-Owned Small Businesses (WOSB) Federal
This program is specially meant for women entrepreneurs to help them grow their business by competing for federal contracts. To be eligible, your business must:

  • Be a small business
  • Have at least 51% ownership and control by women who are U.S. citizens
  • Have women in managing positions to handle day-to-day operations and make long-term decisions

You can also qualify if your business falls in the special circumstances category by meeting the following criteria:

  • Fulfills all requirements for the women’s contracting program
  • Is owned and controlled by one or more women, with a personal net worth that is less than $750,000 each
  • Is owned and controlled by one or more women, with $350,000 or less in adjusted gross income each, averaged over the previous three years
  • Is owned and controlled by one or more women, each having $6 million or less in personal assets

Speak with the Business Finance Capital team to understand how you can take advantage of the government’s goal to encourage women-owned small businesses through 5% reservation of their contracts.

Additional resources for businesswomen

  • National Women’s Business Council – an unbiased federal advisory council that provides counsel and advice to the President, Congress, and U.S. Small Business Administration. It is the government’s only independent source to tackle relevant economic issues and provides an important voice to businesswomen and entrepreneurs.
  • The SBA and Business Finance Capital – to provide business advice and loans to help you gain the knowledge and capital required to start your own business or grow your company further.

If you’re an entrepreneur or businesswoman seeking any further information regarding the programs as mentioned above or have any questions about SBA loans, we request you to kindly contact us or call us at 1-800-SBA-REAL (722-7325)