NWBC Statement on: Banks need to Court Women-owned Businesses

ByNWBC Council

NWBC Statement on: Banks need to Court Women-owned Businesses

(Washington, DC)— The National Women’s Business Council releases a statement following the recent Washington Business Journal article.

“Women entrepreneurs champion the title of ‘fastest growing sector in the small business community,’ even as access to capital remains a major challenge. The National Women’s Business Council (NWBC) research has found that businesses that start with more capital have higher rates of survival. Loans from financial institutions are an important source of capital, but women-owned and women-led businesses obtain fewer loans than average,” said NWBC Chair Cara Harris.

 

As outlined in the 2013 NWBC annual report we recommend community banks and credit unions implement a plan to court women-owned businesses. Our research highlights a Kauffman Firm Survey which tracked a group of firms started in 2004. In 2010, the average woman-owned firm in the sample received $38,217 of new financial capital, about half of what the average man-owned firm received. We want to see this number grow. Additionally, a new report released by Treliant Risk Advisors and NAWBO Greater DC outlines strategic ways for banks to increase lending efforts to women business owners.

 

The economic impact of women-owned businesses is significant and growing. Women entrepreneurs need access to more loans, the NWBC encourages community banks and credit unions to increase their lending efforts to women, which will contribute to economic gains for women entrepreneurs and the nation’s economy.

 

###

 

View the Washington Business Journal article here: http://www.bizjournals.com/washington/blog/2014/02/banks-should-target-women-businesses.html?page=all

 

Contact: Krystal Glass

Communications Director

National Women’s Business Council

Krystal.Glass@nwbc.gov

O: 202.205.6829

 

About the author

NWBC Council administrator

The National Women’s Business Council (NWBC) is a nonpartisan federal advisory council established to serve as an independent source of advice and policy recommendations to the President, the Congress, and the Administrator of the U.S. Small Business Administration on issues related to women’s business enterprise. The Council is comprised of eight small business owners from across the country, six representatives of national women’s business organizations, and one Chairperson, Liz Sara, who was recently appointed by President Donald J. Trump in August 2018.