Community Development Financial Institutions (CDFIs) Provide Affordable Financing to Women

Congress created Community Development Financial Institutions (CDFIs) in 1994 to provide affordable financing to women, minority, and other underestimated entrepreneurs.

CDFIs hope, through financing, is to help women entrepreneurs rebound faster and grow stronger, healthier businesses despite the pandemic.

CDFIs are mission, not profit-driven. They have lower requirements regarding years in business, credit score (or no credit score), and collateral. Entrepreneurs still have to prove that they're creditworthy, but CDFIs work with entrepreneurs whom banks typically turn away. CDFIs have proven that financing women- and minority-business owners are NOT risky.

Think of them as first responders for women entrepreneurs.  How will you use a CDFI loan to become a healthier, stronger business in 2022?

Source:  Our esteemed colleague and friend, Geri Stengel, who contributes to Forbes on a regular basis.  She is a big supporter of women business owners.

Savvy Women Entrepreneurs Don't Work Alone

Our friend and awesome reporter Geri Stengel at Forbes says:

The most successful entrepreneurs don’t do it alone. That holds true for men and for women but particularly for women. 

She goes on to say:

Only other women see, hear and feel what women do. Women face different challenges than men: their access to capital and markets is restricted. What do you get when you problem solve with a group of women entrepreneurs? 

Take a look at what members of  the Women Presidents’ Organization (WPO), a peer advisory group, and organization I am extensively involved since 2003 as the Chicago Chapter Chapter chair, found.

The #1 Secret to Success Women Entrepreneurs Need to Share

Women Entrepreneurs Face Greater Challenges Than Men

Women are starting businesses at a very fast clip but to reach more than a million dollars in revenue is less than 1/3 the rate of companies led by men.

According to Babson,  if women entrepreneurs in the U.S. started with the same funding as their male counterparts, they would add 6 million jobs to the economy within five years.

Those jobs aren’t missing because women are unable to lead. They’re missing because women entrepreneurs face greater challenges than men, and that’s not a whine, it’s a fact. 

Read the great article by Geri Stengel and published by Forbes:

Champion For Women Entrepreneurs Realigns For The Times

Photo Credit: ttnk

Get Comfortable With "The Ask"

  

The Ask!

When you're ready to seek funding for your business, get comfortable with "the ask."  You've got to be bold enough to put your business out there in the market, strut your stuff (capabilities) and "ask" for what you want.  But that's not what this article is about.

The article below is about why crowdfunding is a game-changer for women entrepreneurs. 

Women-owned firms start and grow businesses with substantially less outside financing, according to a Department of Commerce survey of women-owned companies across the U.S. That helps to explain why the average women-owned business has 25% lower revenue than the typical male-owned firm in the same industry.

Read the entire article here.

Many of you have asked me via email for donations on your projects over at Indiegogo and Kickstarter.  What's your experience been like on the funding front -- good, bad or indifferent?  Have you heard of the new kid on the block (not necessarily a crowdfunding site) called Fundwell?