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Fast Company
2 days ago
- Business
- Fast Company
Banking on equality: The journey to build first women's bank
In 2019, I joined a group of entrepreneurial women with one bold goal: to create the only bank in the country strategically built to close the gender lending gap. That vision became First Women's Bank. We were motivated by the numbers, and the opportunity to drive change. Women are transforming the economy in this country, owning over 14 million businesses representing 39% of all businesses, employing over 12 million people and generating $2.7 trillion. But despite this momentum, women are still not accessing the capital at equal rates as men. Women receive just 16% of commercial bank loans —and only 4.4% of total dollars lent in the small business economy. That is the gender lending gap. It is layered. It is complex. But it is also highly addressable. Every business owner is unique, so we don't paint all women-owned businesses with a broad brush. But when you look at the data, a few patterns emerge. Understand the financing options First, many women simply aren't connecting with the right forms of commercial capital. We often see women over-relying on personal credit tools when starting out, and sometimes throughout the life of their business. That might mean using credit cards, personal savings, or home equity lines to keep the business afloat. While resourceful, this approach is also limiting, and it can hurt their ability to qualify for commercial debt financing down the line. At the other end of the spectrum, we see women running high performing, growing firms turning to equity financing to fund expansion. Sometimes, depending on the industry or the company's life stage, that's the right call. But in many cases, it isn't. Some women may not be aware of their other options or realize that a competitively priced commercial loan can be a more cost-effective way to finance growth. This has real consequences. Studies show that on average, women founders retain just 48 cents of equity for every $1 retained by male business owners. Think about that: Women are overcoming obstacles, building successful companies, and then only owning half of their own success. We believe that needs to change. Our goal is to connect with women earlier in their business journey. We're encouraging them to think about commercial financing not just as a last resort, but as a strategic tool for growth. Education and outreach Over the years, we've also seen that women feel left behind in the lending process. They want to make informed financial decisions, but when the information or guidance isn't accessible, they get discouraged and disconnect from the process entirely. Imagine the potential if women could double or triple their access to capital, the ripple effect across jobs, communities, would be transformational—not just for women, but for the entire U.S. economy. So, we rolled up our sleeves. We strategized, we led, and we built. Over two years, we raised nearly $40 million—the most ever raised by a startup bank in Illinois. We launched in 2021 with a simple mission: to grow the economy by elevating the role of women within it. And from the start, investors and partne rs saw th e power in what we were doing. Our success is rooted in that clarity of purpose. It takes a village But from the beginning, we knew we weren't going to do this alone. It takes a village. Our ability to lend and support women-owned businesses is powered by deposits, and we've been fortunate to partner with some of the largest and most respected companies in the country. These organizations support First Women's Bank by holding zero interest deposits with us, creating real impact with their cash. The corporate mission partnerships are a concrete way for companies to bank with their values, support gender equity, and strengthen financial inclusion. We also knew we needed the right advocates at the table, leaders who could help amplify our mission on a national level. That's why we created our Strategic Advisory Board, made up of lifelong champions of equality who have helped bring national attention to the power and potential of the women's economy. Billie Jean King, Sophia Bush, Nia Batts, Allyson Felix, and Wes Felix have all been instrumental in our journey. The solution is layered So, while the gender lending gap has many causes, it also has clear solutions. It starts with access. It grows through education. It scales through capital. And it thrives through partnership. This work is deeply personal to me. Throughout my career, I've seen how often women are underestimated and how often we underestimate ourselves. I've also seen what happens when women access the tools, the capital, and the support they need: They thrive, they lift others, and they transform communities. That's why I'm here. That's why this bank exists. And when women rise, we all rise.
Zawya
30-05-2025
- Business
- Zawya
Sheraa attracts Capital Pool Exceeding $670mln at first edition of 'Deal Dock'
Deal Dock Advances Sheraa's Mission to Accelerate Access to Capital. Curated One-on-One Meetings Enable Targeted Investment Conversations. The MoU between Sheraa and Continuous Venture Capital enhances funding opportunities for startups in their early stages. A capital Pool Exceeding $671 million. Sara Al Nuaimi: The 'Deal Dock' reflects Sheraa's commitment to building platforms that unlock new opportunities for entrepreneurs and investors. Colin Meagle: Partnering with Sheraa allows us to tap into a pipeline of purpose-driven founders. Sharjah, The Sharjah Entrepreneurship Center (Sheraa) hosted the first edition of Sheraa Deal Dock on May 29th at its headquarters, bringing together around 200 startups and bridging them with a network of active investors. The event also witnessed the signing of a Memorandum of Understanding (MoU) between Sheraa and Continuous Venture Capital, aimed at expanding access to funding for Sheraa-supported startups, particularly those in the pre-seed and seed stages. This edition of Sheraa Deal Dock welcomed the participation of six investors: Global Ventures, Continuous Ventures, Oraseya Capital, Wamda Capital, Beco Capital, and Shorooq Partners. Collectively, these firms represent a capital pool exceeding $671 million, underscoring the strength and growing reputation of Sharjah's entrepreneurial ecosystem, as well as Sheraa's ability to convene mission-aligned capital partners. Each investor brought distinct sector expertise and investment philosophies, contributing to the event's goal of facilitating high-value, founder-investor connections that go beyond the pitch. The event aligns with Sheraa's wider mission to accelerate access to capital and support the growth of impactful ventures. Each of the participating startups took part in one-on-one meetings with aligned investors. These meetings were matched to ensure mutual interest and sector alignment, maximizing the chances of meaningful outcomes. The event featured a fireside chat titled Inside the Investor's Mind, offering founders rare insight into investor expectations and decision-making dynamics. The chat featured Sonia Weymuller, Co-Founder and General Partner at VentureSouq and a Sheraa Advisory Board Member, in conversation with moderator Nader Amiri, General Partner at Homegrown Ventures and a Sheraa alum. As a leading voice in the investment space, Weymuller shared valuable perspectives drawn from her experience supporting startups across the region and beyond. Strategic Partnership During the event, Sheraa signed a Memorandum of Understanding (MoU) with Continuous Venture Capital, marking a strategic collaboration aimed at expanding funding opportunities for Sheraa portfolio startups, specifically targeting those in the pre-seed and seed stages. The MoU was signed by HE Sara Abdulaziz Al Nuaimi, CEO of Sheraa, and Colin Meagle, Founding Partner of Continuous Venture Capital. This partnership reinforces Sheraa's commitment to accelerating startup growth by facilitating access to early-stage capital, strengthening investment readiness, and connecting founders with regional and international investors. Through this collaboration, startups will benefit from strategic support, market exposure, and tailored engagement with Continuous VC's investment network. HE Sara Abdulaziz Al Nuaimi, CEO of Sheraa, said: 'Sheraa Deal Dock reflects our continued commitment to building platforms that unlock meaningful opportunities for both entrepreneurs and investors. The event was designed to foster strategic, action-oriented connections, enabling startups to present their ventures in a focused environment and gain valuable feedback to accelerate their growth. Through such initiatives, we advance our efforts to position Sharjah as a dynamic hub for entrepreneurship and innovation, supporting purpose-driven ventures that contribute to a more resilient and diversified economy.' She added: 'We recognize that early-stage founders need more than just capital; they need partners who understand the challenges of building a business and are committed to their long-term success. Our partnership with Continuous Venture Capital is a strategic extension of this philosophy. By enhancing access to funding, improving investment readiness, and expanding connections to relevant investor networks, we are creating an enabling environment where bold ideas can thrive. This collaboration reinforces Sheraa's mission to empower entrepreneurs and turn ambitious visions into tangible, lasting impact.' Highlighting the strategic value of the collaboration, Mr. Colin Meagle, Founding Partner, Continuous Venture Capital said:"We believe that transformative ventures often begin with a single opportunity; one that's backed by belief, guidance, and access to the right resources. Partnering with Sheraa allows us to tap into a pipeline of purpose-driven founders who are solving real-world problems with innovation and integrity. Together, we are not just investing in startups; we are building a foundation for sustainable growth, empowering the next generation of changemakers, and strengthening the region's role as a global hub for entrepreneurial excellence." Sheraa Deal Dock exemplifies Sheraa's role in positioning Sharjah as a global hub for entrepreneurship and innovation. Since 2016, Sheraa has supported over 450 startups and helped raise nearly $300 million in funding. Events like Deal Dock represent the next chapter in this journey, where curated access, quality engagement, and measurable outcomes define success.
Forbes
07-05-2025
- Business
- Forbes
How SMBs Should Navigate The SBA's 2025 Ownership Changes
Businesses interested in SBA loans should assess ownership structure, and the immigration status of ... More each owner. Adobe Stock In early March, the Small Business Administration (SBA) made one of the most significant policy changes in recent years by revising the eligibility criteria for 7(a) and 504 loans, shifting the eligibility requirement for small businesses from 51% to 100% U.S. citizen-owned. In line with the Administration's broader immigration reform efforts, this change means that federal funding will now be available only to U.S. citizens and lawful permanent residents. However, there are likely larger repercussions that will emerge from this change, including trickle-down effects on the broader small business community. What do business owners need to know, and how should they prepare in the weeks and months ahead as they assess their capital needs? Small and medium-sized businesses (SMBs) face a significant challenge: access to capital . Although recent easing of regulatory standards and a pro-business agenda have led SMBs to feel more optimistic about obtaining loans, the fluctuation of tariff decisions, higher interest rates, and banks' tightening of credit have introduced uncertainty that undermines their confidence. Successful SMB owners have always needed to look beyond the noise to make strategic plans, but now many face the potential loss of a vital and longstanding source of funding. SBA loans, although somewhat cumbersome in their application process, offer numerous benefits. Regulated by the U.S. Small Business Administration, these loans have interest rates tied to a base rate that varies with the market, providing favorable terms for working capital. This funding supports job creation, equipment and facility purchases, and various growth initiatives. In 2024, the SBA provided $56 billion in loans to over 103,000 U.S. small businesses, including assistance for disaster recovery. However, recent changes have impacted the lending landscape. Previously, SMBs with up to 49% foreign ownership could receive funding. As of early March, this flexibility has been completely removed. Now, all owners must be 100% U.S. citizens, nationals, or lawful permanent residents. Although existing loans should not be affected, future disqualifications or delays are expected. A Drag on Innovation Immigrants are highly entrepreneurial, and their impact on our country has been significant. A 2024 report from the American Immigration Council found that immigrants or their children founded 46 percent of all Fortune 500 companies. Lendio believes in making access to capital more inclusive for all SMBs. It's both a moral imperative and a sound business decision. Currently, one in four businesses in the United States is founded by immigrants , many of whom rely on SBA loans and employ a significant number of U.S. citizens. Furthermore, between 5% and 10% of businesses have some level of foreign ownership, which creates additional ripple effects from policy changes. Restricting immigrants' access to capital could delay job creation and growth opportunities, potentially leading to an economic downturn. A friend of mine recently came to Lendio to get help securing an SBA loan. He has two businesses he owns: one with 100% ownership from US citizens, and then a subsidiary with only 1% ownership from a non-US citizen. Because his application happened after March 7, his application was declined by the lender stating the fact that they need both entities to be 'co-owners' on the loan. We are now working on other potential loan options to help fill the gap. Planning Their Next Move These policy changes highlight the need for businesses with diverse ownership structures to review their eligibility for financing and consider alternative funding options if necessary. Businesses that are still planning to apply for an SBA loan should assess their ownership structure and confirm the immigration status of all owners. While complicated, there are also numerous avenues to pursue if they want to restructure their ownership to continue pursuing SBA loans. With the careful consultation of professional experts, including attorneys and accountants, gifting ownership to an individual, transferring ownership through a merger or acquisition, or leasing the business are all options. Fortunately, there are numerous alternative financing options available that offer flexibility, including bank loans, non-bank lenders, and embedded financing. Platforms like Lendio provide a centralized way for small business owners to explore these options through a marketplace that offers a range of options, making it faster and easier to apply for capital. This is a defining moment for the lending industry. As traditional pathways close, we must build new ones driven by innovation, inclusivity, and a commitment to serving the small businesses that power our economy. Let's rise to meet that need.
