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Bernardo Martinez leads US strategy and operations for Funding Circle, the worldwide small business loans platform.
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A little over 30 years back, some females business owners in the usa could apply for a n’t company loan without male cosigners. It could seem unbelievable today. Not that sometime ago, a bank could need a lady to create her dad, spouse, cousin and even her son to cosign her company loan papers, no matter their participation when you look at the company. Congress outlawed this practice that is discriminatory the landmark passing of the Women’s company Ownership Act, enacted in 1988.
We’ve come a long distance since then. The national average in the past two decades alone, the number of women-owned firms in the U.S. Has increased 114% — two and a half times. But we continue to have some distance to especially go regarding exactly how these firms have money to develop.
Ladies companies nevertheless disproportionately face hurdles in accessing business funding in comparison to their male counterparts. Information through the yearly Federal Reserve Banks “Small Business Credit Survey” shows that women-owned organizations submit an application for funding at comparable rates to companies owned by guys, but women-owned organizations, on average, look for lower amounts. They even are less likely to want to have the complete quantity they desired (43% vs. 48% of males).