Access to capital often determines whether a business scales successfully or shutters. It dictates whether a founder can transform their idea into a thriving small business, achieve growth, or struggle to survive due to insufficient funding.
From the countless entrepreneurs I’ve spoken to, the journey from idea to execution is frequently accompanied by the search for an investor or a bank loan to fuel growth. However, venture capital is far less accessible than shows like Shark Tank might lead us to believe.
Business bank loans often present a paradox. They typically require historical sales and revenue data, which new businesses rarely possess. For startups, loans are usually secured by a personal guarantee, ensuring the bank is repaid regardless of the business’s success. This places significant financial risk on the individual guaranteeing the loan, and many new founders may not meet the financial requirements for this option.
The most common path founders take to turn an idea into a business is bootstrapping, relying on personal savings, support from friends and family, or even credit cards. However, other unique ways exist to access funding and grow a business.
Here are some valuable resources to consider:
Mission-Based Lenders
Mission-based lenders provide an essential funding alternative for entrepreneurs facing challenges qualifying for traditional bank loans. “These lenders offer capital ranging from as low as $500 to as high as $250,000—amounts that may seem substantial but still fall below the minimum thresholds many banks consider,” says Anna-Marie Cruz, Director of Business Development & Community Engagement.
Examples include nonprofits like Kiva and CDFIs such as Accion Opportunity Fund, LISC, and CDC Small Business Finance. Entrepreneurs can find these and similar lenders by searching on CDFI Small Business Lender.
Women-specific resources include Grameen America, which provides microloans to low-income women entrepreneurs, and the Women’s Business Development Center (WBDC), which offers financial assistance, loan programs, and training tailored to women business owners.
Cherub
Have you ever been told to find an angel investor but felt lost, overwhelmed by endless networking events with no clear path forward? Cherub, founded by Jaclyn Johnson, Founder of Create & Cultivate, and Angeline Vuong, Digital Product Leader, and former Head of Buyer Products at Opendoor, is here to revolutionize the process.
As a membership-based platform, Cherub bridges the gap between angel investors actively seeking opportunities and founders ready to scale. Think of Cherub as a dating app for startups and investors, where both sides can connect, evaluate, and build the perfect partnership. Notable investors on the platform include Morgan DeBaun, Angel Investor and Founder of Blavity & AfroTech, and Sophia Amoruso, GP at Trust Fund and Founder of Girlboss.
Found/LA
FOUND, an initiative by the Wurwand Foundation, was founded by Jane and Raymond Wurwand, creators of Dermalogica, to support local entrepreneurs in building their businesses, fulfilling their purposes, and uplifting their communities. Focused on bridging the funding gap for Main Street businesses, FOUND provides entrepreneurs—especially women, immigrants, and BIPOC individuals—access to capital, education, and a supportive network of like-minded peers.
Launched initially as a pilot program in Los Angeles, FOUND/LA has since created a blueprint for similar initiatives to expand to cities nationwide.
One of FOUND/LA’s key goals is helping local entrepreneurs secure the capital they need to grow their businesses. “Women-owned businesses receive less than 4% of all available funding, whether from loans, family support, or venture capital. For women of color, that number is less than 1%, despite starting businesses at nine times the rate of any other group,” explains Jane Wurwand. FOUND/LA partners with nonprofit lenders to provide these entrepreneurs with affordable, trusted loans and grants, giving them the resources they need to succeed.
Grants for Women
Regarding grants, the more you apply, the better your chances of success. It’s also a chance to build valuable relationships—if you don’t win initially, stay connected with the organizations and reapply. Remember, you have to be in it to win it! Below is a list of popular grant opportunities for women, but with some research, you’ll find countless options available.
- Amber Grant
The Amber Grant supports women entrepreneurs by awarding three $10,000 monthly grants to women. In addition, it offers three annual $25,000 grants to a select trio of winners chosen from that year’s 36 monthly grant recipients.
- Cartier Women’s Initiative
The Cartier Women’s Initiative empowers women entrepreneurs who are driving change and creating a positive impact. This program offers funding, mentorship, and networking opportunities to help women scale their businesses.
- The Tory Burch Foundation
The Tory Burch Foundation Fellows Program selects up to 50 Fellows annually from across the U.S. and its territories for a one-year fellowship. The program offers digital education, a $5,000 education grant, access to no-interest loans, networking opportunities, and more.
- Women’s Founder Network
The Women’s Founder Network Fast Pitch Competition awards $25,000 to top Tech/Tech-Enabled and Consumer/CPG companies, with an additional $5,000 grant for one finalist chosen by Junior Venture Capitalists.
Whether you’re in the ideation stage or preparing to scale your business, it’s essential to know that funding options are available. Researching these options and carefully evaluating how each will affect your personal and business finances is key to selecting the right path forward.
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