SMALL BUSINESS

CREDIT SURVEY

REPORT ON WOMEN-OWNED FIRMS

Published November 2017

TABLE OF CONTENTS

29 PARTNER ORGANIZATIONS

ACKNOWLEDGMENTS

This Small Business Credit Survey (SBCS) is made possible through collaboration with more than 400 business organizations in communities across the United States. The Federal Reserve Banks thank the national, regional, and community partners who share valuable insights about small business financing needs and collaborate with us to promote and distribute the survey.¹ We also thank the National Opinion Research Center (NORC) at the University of Chicago for assistance with weighting the survey data to be statistically representative of the nation’s small business population.²

Special thanks to colleagues within the Federal Reserve System, particularly the Community Affairs Officers,³ and representatives from the U.S. Department of the Treasury, U.S. Small Business Administration, the Association for Enterprise Opportunity (AEO), and The Aspen Institute for their support for this project.

We particularly thank the following individuals:

Daniel Davis, Community Development Officer, Federal Reserve Bank of St. Louis

Menna Demessie, Vice President, Policy Analysis & Research, Congressional Black Caucus Foundation

Annie Donovan, Director, CDFI Fund, U.S. Department of the Treasury

Ingrid Gorman, Research and Insights Director, Association for Enterprise Opportunity

Tammy Halevy, Senior Vice President, New Initiatives, Association for Enterprise Opportunity

Kausar Hamdani, Senior Vice President, Federal Reserve Bank of New York

Gina Harman, Chief Executive Officer, Accion USA

Brian Headd, Chief Economic Advisor, U.S. Small Business Administration

Joyce Klein, Director, FIELD, The Aspen Institute

Joy Lutes, Vice President of External Affairs, National Association of Women Business Owners

John Moon, District Manager, Community Development, Federal Reserve Bank of San Francisco

Chad Moutray, Chief Economist, National Association of Manufacturers

Robin Prager, Senior Adviser, Federal Reserve Board of Governors

Alicia Robb, Chief Executive Officer, Next Wave Ventures

Lauren Rosenbaum, Communications Manager, U.S. Network, Accion

Lauren Stebbins, Vice President, Small Business Initiatives, Opportunity Finance Network

Jeffrey Stout, Director, State Small Business Credit Initiative, U.S. Department of the Treasury

Storm Taliaferrow, Manager of Membership & Impact Assessment, National Association for Latino Community Asset Builders (NALCAB)

Richard Todd, Vice President, Federal Reserve Bank of Minneapolis

Holly Wade, Director of Research and Policy Analysis, National Federation of Independent Business

Eric Weaver, Chief Executive Officer, Opportunity Fund

Kristin Westmoreland, Vice President, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce

Allison Kroeger Zeller, Director of Research, National Retail Federation

1 For a full list of community partners, please see p. 29.

2 For complete information about the Survey Methodology, please see p. 27.

3 Joseph Firschein, Board of Governors of the Federal Reserve System; Todd Greene, Federal Reserve Bank of Atlanta; Prabal Chakrabarti, Federal Reserve Bank of Boston; Alicia Williams, Federal Reserve of Chicago; Paul Kaboth, Federal Reserve Bank of Cleveland; Roy Lopez, Federal Reserve Bank of Dallas; Tammy Edwards, Federal Reserve Bank of Kansas City; Michael Grover, Federal Reserve Bank of Minneapolis; Theresa Singleton, Federal Reserve Bank of Philadelphia; Sandy Tormoen, Federal Reserve Bank of Richmond; Yvonne Sparks, Federal Reserve Bank of St. Louis; and David Erickson, Federal Reserve Bank of San Francisco.

ACKNOWLEDGMENTS (CONTINUED)

This report is the result of the collaborative effort, input, and analysis of the following teams:

REPORT TEAM

Jessica Battisto, Federal Reserve Bank of New York Dell Gines, Federal Reserve Bank of Kansas City Claire Kramer Mills, Federal Reserve Bank of New York

SURVEY DATA AND METHODOLOGY MANAGER Ellyn Terry, Federal Reserve Bank of Atlanta

SURVEY DATA AND METHODOLOGY TEAM Brett Barkley, Federal Reserve Bank of Cleveland Jessica Battisto, Federal Reserve Bank of New York Scott Lieberman, Federal Reserve Bank of New York Emily Wavering, Federal Reserve Bank of Richmond

PARTNERSHIPS MANAGER Emily Mitchell, Federal Reserve Bank of Atlanta

SURVEY OUTREACH TEAM

Leilani Barnett, Federal Reserve Bank of San Francisco Bonnie Blankenship, Federal Reserve Bank of Cleveland Jeanne Milliken Bonds, Federal Reserve Bank of Richmond Nathaniel Borek, Federal Reserve Bank of Philadelphia Laura Choi, Federal Reserve Bank of San Francisco Brian Clarke, Federal Reserve Bank of Boston Joselyn Cousins, Federal Reserve Bank of San Francisco Chelsea Cruz, Federal Reserve Bank of New York Peter Dolkart, Federal Reserve Bank of Richmond Ian Galloway, Federal Reserve Bank of San Francisco Dell Gines, Federal Reserve Bank of Kansas City Jennifer Giovannitti, Federal Reserve Bank of Richmond Melody Head, Federal Reserve Bank of San Francisco Michou Kokodoko, Federal Reserve Bank of Minneapolis Lisa Locke, Federal Reserve Bank of St. Louis Shannon McKay, Federal Reserve Bank of Richmond Emily Mitchell, Federal Reserve Bank of Atlanta Craig Nolte, Federal Reserve Bank of San Francisco Drew Pack, Federal Reserve Bank of St. Louis Emily Perlmeter, Federal Reserve Bank of Dallas E. Kathleen Ranalli, Federal Reserve Bank of Cleveland Javier Silva, Federal Reserve Bank of New York

We thank all of the above for their contributions to this successful national effort.

Claire Kramer Mills, PhD Assistant Vice President and Community Affairs Officer Federal Reserve Bank of New York

The views expressed in the following pages are those of the authors and do not necessarily represent the views of the Federal Reserve System.

EXECUTIVE SUMMARY

Majority women-owned firms, where 51 percent or more of the business is owned by women, are an important segment of U.S. businesses.¹ Since 2007, womenowned firms in the United States, both the self-employed and firms with employees (“employer firms”),² have been growing—in number and as a share of all U.S. firms.³ As of 2015, women-owned firms totaled over one million and accounted for one-fifth of U.S. firms.⁴ Among women-owned employer firms, jobs and annual receipts have grown since 2012.⁵ Between 2007 and 2015, the share of employment by small women-owned firms increased by twenty percent, while the share of employment by all small firms declined by about four percent.⁶

This report uses a unique dataset to examine the experiences of women-owned small employer firms, especially as compared to their men-owned peers.⁷ Small employer firms have traditionally played an important role in U.S. job creation,⁸ and women-owned firms are an emerging share of the sector.⁵ Understanding the opportunities and challenges facing this growing segment of women-owned employers can provide insight into future economic contributions of the sector overall.

Even as their numbers grow, businesses owned and/or managed by women are encountering significant performance and financial challenges and growth limits.⁹ Women-owned firms historically have had lower survival rates, profits, employment, and sales than businesses owned by men¹⁰— what has been called the “entrepreneurship gender gap.”¹¹ Moreover, Kauffman Firm

Survey findings from 2004 to 2006 indicate women-owned firms start with less capital than their male counterparts, and raise less debt and equity in their early years.¹² This disparity can have long-term effects, since startup and growth capital are key contributors to future business success.¹³

The Small Business Credit Survey offers insights into the sources and implications of the “entrepreneurship gender gap” by comparing women- and men-owned firms’ credit risk, collateral, performance, credit applications, and success rates. Overall, the survey finds:

Majority women-owned firms with employees start small and stay small

ƒƒ Women-owned small employer firms (hereafter, “women-owned firms”) report lower revenues and fewer employees than men-owned small employer firms (hereafter, “men-owned firms”)— at all ages and stages of development. Women-owned firms are also more likely to report profitability challenges at early (five years or less) and later (more than 5 years) stages of maturity.¹⁴

ƒƒ Only 22% of women-owned firms had scaled to $1 million or more in annual revenues in 2016, compared to 36% of men-owned firms.

Women-owned firms are concentrated in less capital-intensive industries

ƒƒ Women-owned firms are concentrated in industries such as education and healthcare, and in professional services and real

estate. These industries comprise 40% of all women-owned firms.

ƒƒ Men-owned firms, in contrast, are concentrated in professional services and real estate and non-manufacturing goods production & associated services.

Women-owned firms are more likely to experience financial challenges and growth limits than men-owned firms

ƒƒ A higher share of women-owned firms reported profitability challenges (31% were operating at a loss, compared to 25% of men-owned firms). Women-owned firms were also more likely to report higher credit risk, with 41% identifying as medium/high credit risk compared to 33% of men-owned firms.

ƒƒ Such differences are particularly striking for early stage firms, where more than half of women-owned firms (53%) identified as medium/high credit risk, compared to 40% men-owned firms. However, among firms that have survived six or more years, the credit risk differences between women- and men-owned firms are indistinguishable (33% of women-owned firms are medium/high credit risk, compared to 29% of men-owned).

ƒƒ Women-owned firms are more likely to report experiencing financial challenges in the previous 12 months: 64% compared to 58% of men-owned firms.

ƒƒ While the types of financial challenges that women-owned firms experience are similar to those men face—including accessing credit, meeting operating expenses, and purchasing inventory—women

1 Center for Women’s Business Research (2009), The Economic Impact of Women-Owned Businesses in the United States.

2 Employer firms in this report are defined as having at least one employee in addition to the owner(s).

3 The largest and fastest-growing segment of women entrepreneurs is non-employers, or the self-employed. The Small Business Credit Survey collects data on both self-employed and employer firms. Future analysis will focus on self-employed women.

4 Based on calculations from the US Census Annual Survey of Entrepreneurs (2015).

5 Based on calculations from the US Census Survey of Business Owners (2012) and Annual Survey of Entrepreneurs (2014 and 2015).

6 Based on calculations from the US Census Survey of Business Owners (2007) and Annual Survey of Entrepreneurs (2015).

7 Small employer firms have between one and 499 full- or part-time employees in addition to the owner(s). 20% of small employer firms are majority women-owned, 65% are majority men-owned, and 15% are equally owned.

8 Bureau of Labor Statistics, Business Employment Dynamics. For 2017 Q1 job gains and losses by size of firm, see: https://www.bls.gov/web/cewbd/table_a.txt.

9 Premier Quantitative Consulting, Inc. for National Women’s Business Council (2015), Undercapitalization as a Contributing Factor to Business Failure for Women Entrepreneurs. Coleman & Robb for National Women’s Business Council (2014), Access to Capital by High-Growth Women-Owned Businesses..

10 Fairlie & Robb (2009), Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey.

11 New York City (2015), The State of Women Entrepreneurs in New York City: The Landscape and Opportunity.

12 Coleman and Robb (2009), A Comparison of New Firm Financing by Gender: Evidence from the Kauffman Firm Survey Data.

13 Coleman and Robb for National Women’s Business Council (2014), Access to Capital by High-Growth Women-Owned Businesses.

14 See Appendix.

EXECUTIVE SUMMARY (CONTINUED)

report 10% more growth-related financial challenges than men.

Women-owned firms depend on small denomination credit and personal assets to secure financing

ƒƒ Sixty-eight percent of women-owned firms have outstanding debt, similar to men-owned firms, but women’s debt holdings are notably smaller in size. Sixty-five percent of women-owned firms hold debt of $100,000 or less, compared to 51% of men-owned firms.

ƒƒ This pattern holds even among firms that have scaled to $1 million or more in annual revenue. Among this group of larger firms, women-owned firms hold noticeably less debt; 55% hold $250,000 or less, compared to 45% of men-owned firms.

ƒƒ Of the debt held, women are more likely than their male counterparts to hold unsecured debt for their businesses. Seventeen percent of women used no collateral to secure their debt, compared to 10% of men. Women-owned firms were also less likely to use business assets as collateral (40% compared to 51% of men-owned firms).

ƒƒ The disparity in use, and perhaps existence, of business assets holds even among higher revenue firms. Womenowned firms with $1 million or more in annual revenue were still less likely than men-owned firms to pledge business assets as collateral (56% compared to 66%), making them reliant on personal assets in order to secure capital.

ƒƒ Among credit applicants, two-thirds of women-owned firms sought $100,000 or less, compared to 49% of men-owned firms.

ƒƒ Similar to men, the majority of womenowned firms rely partly or entirely on the business owner’s personal credit score to secure financing for the firm, especially at early stages. This tendency diminishes as firms mature.¹⁴

Women-owned firms applied for credit at a similar rate as men; women-owned nonap- plicants were more often discouraged from

applying and less likely to say they had sufficient financing than men-owned firms

ƒƒ Forty-three percent of women-owned firms applied for credit, similar to the share of men-owned firms (46%).

ƒƒ Among nonapplicants, fewer womenowned firms reported having sufficient financing than men-owned firms (43% compared to 50%).

ƒƒ Women-owned firms also reported being discouraged—not applying for financing for fear of being turned down—at a higher rate than men: 22% compared to 15%. Among discouraged women-owned firms, nearly half flagged a low credit score as a chief obstacle, perhaps reflecting the larger share of women-owned firms that are medium/high credit risks. Men-owned firms, in contrast, were more likely to cite business performance issues (51% compared to 42%).

ƒƒ Women-owned nonapplicant firms reported similar levels of debt aversion as men-owned firms (27% compared to 25%).

Women-owned firms utilize fewer types of debt and equity than men-owned firms, relying heavily on credit cards and Small Business Administration products

ƒƒ Credit cards are a common financing tool for both women- and men-owned firms. Fifty-eight percent of women-owned and 59% of men-owned nonapplicants regularly use credit cards. Among recent credit applicants, women were more likely to apply for credit cards than men (34% compared to 28%).

ƒƒ However, women-owned firms are less likely than men-owned firms to hold a variety of debt and equity types. For example, 28% of women-owned nonapplicants hold a loan or line of credit, compared to 34% of men-owned firms, and 8% of women-owned nonapplicants hold trade credit compared to 14% of men. Women-owned firms are also slightly less likely to use leasing or have equity investment in their firms.

ƒƒ Among firms that recently applied for credit, women-owned firms applied for business loans at a similar rate as menowned firms, but were significantly less likely to receive financing (47% success compared to 61%). In contrast, womenowned firms were more often approved for SBA loans/lines of credit: 61% compared to 50%.

ƒƒ Women-owned firms were less likely to apply for lines of credit (36% compared to 44%), which tend to be the most affordable and flexible credit product, but had similar levels of success as men-owned firms (64% compared to 68%).

ƒƒ Among firms with low credit risk, womenowned firms applied at similar rates for loans/lines of credit as men-owned firms.¹⁴ Women- and men-owned firms were approved at similar rates for lines of credit. However, low credit risk womenowned firms were less likely to be approved for business loans than their male counterparts (68% compared to 78%).

Women-owned firms face persistent funding gaps and funding source mismatches, even when have lower credit risk

ƒƒ Sixty-four percent of women-owned firms reported a funding gap, receiving only some or none of the financing sought, compared to 56% of men-owned firms. Fewer women-owned firms received all of the funding sought than men-owned firms and more women received none. Among low credit risk firms, 48% of women-owned firms received all of the financing requested, compared to 57% of men-owned firms.¹⁴

ƒƒ Women-owned applicants were more likely to apply to large banks than small banks (49% vs. 40%), but were notably more likely to be approved at small banks than large banks (67% vs. 50%). Womenowned applicants also reported notably higher satisfaction levels at small banks (80%) than either at large banks (55%) or at online lenders (48%).

20% of small employer firms are women-owned.

1,2 GENDER OF FIRM OWNER(S) (% of employer firms)

20%

Majority women- owned

N=9,034

15% Equally owned

65%

Majority men- owned

Women-owned firms tend to be younger than men-owned firms.

AGE OF FIRM 2,3 (% of employer firms)

2,3 AGE OF FIRM (% of employer firms)

1 Gender of firm owner(s) is classified based on 51% or more ownership by a given gender. If there is no majority, then the firm is equally owned.

2 SBCS responses throughout this report are weighted using Census data to represent the US small business population on the following dimensions: firm age, number of employees, industry, geography, and gender of owner.

3 Percentages may not sum to 100 due to rounding.

FIRM CHARACTERISTICS (CONTINUED)

Women-owned firms generally have smaller revenues and fewer employees than men-owned firms.

REVENUE SIZE OF FIRM¹ (% of employer firms)

NUMBER OF EMPLOYEES 2,3 (% of employer firms)

2,3 NUMBER OF EMPLOYEES (% of employer firms)

43% of women-owned 4 firms use contract workers.

N=2,878

Median number of contract workers per women-owned firm: 3

firms use contract workers. 4

N=1,341

1 Percentages may not sum to 100 due to rounding.

3 Employer firms are those that reported having at least one full-time or part-time employee. Does not include self-employed or firms where the owner is the only employee.

4 Use of contract workers presented for women-owned firms. For equally owned and men-owned firms, see Appendix.

FIRM CHARACTERISTICS (CONTINUED)

1,2 CENSUS DIVISION (% of employer firms)

Majority Women-owned (N=2,880) Equally owned (N=1,260) Majority Men-owned (N=4,894)

16% | 19% | 16% 5% | 4% | 5%

Pacific7% | 9% | 7%New England West North Central

14% | 13% | 14%

East North Central

7% | 10% | 7% 13% | 10% | 15%

Mountain Middle Atlantic

22% | 17% | 19%

South Atlantic

4% | 4% | 5%

East South Central

11% | 14% | 10%

West South Central

1,3 GEOGRAPHIC LOCATION (% of employer firms)

Majority women-owned 86% 14% (N=2,880)

Equally owned 73% 27% (N=1,260)

Majority men-owned 84% 16% (N=4,894)

Urban Rural

SBCS responses throughout this report are weighted using Census data to represent the US small business population on the following dimensions: firm age, number of employees, industry, geography, and gender of owner. Percentages may not sum to 100 due to rounding. Urban and rural definitions come from Centers for Medicare & Medicaid Services. See Appendix for more detail.

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

FIRM CHARACTERISTICS (CONTINUED)

Two out of five women-owned firms are in the healthcare and education, or professional services and real estate industries.

1,2,3 INDUSTRY (% of employer firms)

Healthcare and education

Professional services and real estate

Business support and consumer services

Retail

Leisure and hospitality 8%

Non-manufacturing goods production & associated services

4% Finance and insurance 4% 8%

3% Manufacturing 3% 4%

Majority women-owned (N=2,880)

21% 13% 10%

19% 10% 21%

16% 16% 15%

14% 18% 13%

12% 20%

12% 15% 21%

firm age, number of employees, industry, geography, and gender of owner. Percentages may not sum to 100 due to rounding.

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS

Equally owned (N=1,260) Majority men-owned (N=4,894)

Source: Small Business Credit Survey, Federal Reserve Banks

SBCS responses throughout this report are weighted using Census data to represent the US small business population on the following dimensions: Firm industry is classified based on the description of what the business does, as provided by the survey participant. See Appendix for definitions of each industry.

FIRM CHARACTERISTICS (CONTINUED)

RACE/ETHNICITY OF OWNER¹ (% of employer firms) BUSINESS STAGE² OF FIRM (% of employer firms)

87% 81% 77% 71% 73% 69%

31% 29% 27% 23% 19% 13%

Non-minority Minority Not growing Growing

Majority women-owned (N=2,521) Majority women-owned (N=2,793) Equally owned (N=1,071) Equally owned (N=1,224) Majority men-owned (N=3,912) Majority men-owned (N=4,781)

AGE OF FIRM’S PRIMARY FINANCIAL DECISION MAKER (% of employer firms)

34%

29% 30% 30% 30% 27%

20% 20%

18% 16%

12% 10% 9% 7% 8%

Under 36 36-45 46-55 56-65 Over 65

Majority women-owned (N=2,874) Equally owned (N=1,255) Majority men-owned (N=4,885)

A firm is classified as minority-owned if more than half of the business is owned and controlled by minority group members. Growing firms are defined as those that increased revenues and employees in the prior 12 months and plan to increase or maintain their number of employees.

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

PERFORMANCE & CREDIT RISK

Women-owned firms were less often profitable than men-owned firms in 2015.

REVENUE CHANGE, 1

CHANGE IN EMPLOYMENT, 1

PROFITABILITY, End of 2015 (% of employer firms)

1 REVENUE CHANGE, Prior 12 Months² (% of employer firms)

1 CHANGE IN EMPLOYMENT, Prior 12 Months² (% of employer firms)

Majority women-owned (N³=2,751–2,842) Equally owned (N³=1,214–1,244) Majority men-owned (N³=4,757–4,844)

Women-owned firms were notably more optimistic about revenue growth than men-owned firms.

FIRM EXPECTATIONS INDEX, 4 Next 12 Months⁵

4 FIRM EXPECTATIONS INDEX, Next 12 Months⁵ (% of firms expecting increase minus % of firms expecting decrease)

1 Percentages may not sum to 100 due to rounding.

2 Approximately the second half of 2015 through the second half of 2016.

3 The observation count varies by question.

4 The index is the share reporting expected positive growth minus the share reporting expected negative growth.

5 Expected change in approximately the second half of 2016 through the second half of 2017.

PERFORMANCE & CREDIT RISK (CONTINUED)

Women-owned firms were more likely to report being medium or high credit risk than men-owned firms.

CREDIT RISK¹ OF FIRM (% of employer firms)

However, gender differences by credit risk are driven by women-owned startups; among firms older than five years, credit risk is indistinguishable by the owner’s gender.

1 Self-reported business credit score or personal credit score, depending on which is used to obtain financing for their business. If the firm uses both, the highest risk rating is used. ‘Low credit risk’ is a 80-100 business credit score or 720+ personal credit score. ‘Medium/high credit risk’ is a 1–79 business credit score or a <720 personal credit score. 2 The observation count varies by age of firm.

1 SHARE OF FIRMS WITH FINANCIAL CHALLENGES, Prior 12 Months² (% of employer firms)

64% of women-owned firms faced 2 financial challenges in the prior 12 months.

3 FINANCIAL CHALLENGES, Prior 12 Months² (% of employer firms)

Women-owned firms experienced similar financial challenges to men- owned firms and most frequently used personal funds to fill gaps.

3,4,5 ACTIONS TAKEN AS A RESULT OF FINANCIAL CHALLENGES, Prior 12 Months² (% of women-owned firms reporting financial challenges)

N=1,243

1 Financial challenges are listed in the “Financial Challenges” chart.

2 Approximately the second half of 2015 through the second half of 2016.

3 Respondents could select multiple options.

4 Response options ‘negotiated terms with lender,’ ‘did not pay-debt went to collections,’ ‘unsure,’ and ‘other’ not shown in chart. See Appendix for more detail.

5 Actions taken shown for women-owned firms. For equally owned and men-owned firms, see Appendix.

Similar to men-owned firms, women-owned firms most frequently funded operations through retained earnings.

PRIMARY FUNDING SOURCE (% of employer firms)

Majority women-owned (N=2,831)

Equally owned (N=1,243)

Majority men-owned (N=4,840)

90% of women-owned firms relied on the owner’s personal credit score to obtain financing.

CREDIT SCORE USED TO OBTAIN FINANCING¹ (% of employer firms)

Majority women-owned (N=2,296)

Equally owned (N=1,003)

Majority men-owned (N=3,764)

FINANCING AND DEBT (CONTINUED)

68% of women-owned firms have outstanding debt, similar to men-owned firms.

SHARE WITH OUTSTANDING DEBT, at Time of Survey (% of employer firms)

71% 70% 68%

Majority women-owned Equally owned Majority men-owned (N=2,850) (N=1,248) (N=4,837)

Women-owned firms, however, tend to have smaller amounts of debt.

AMOUNT OF DEBT, at Time of Survey (% of employer firms with debt)

36% 32% 29% 27% 23% 23% 20% 19% 19% 19% 17% 14% 10% 8% 4% ≤$25K $25K–$100K $100K–$250K $250K–$1M >$1M Amount of debt

*Categories have been simplified for readability. Actual categories are: ≤$25K, $25,001-$100K, $100,001-$250K, $250,001-$1M, >$1M. Majority women-owned (N=1,859) Equally owned (N=853) Majority men-owned (N=3,272)

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

FINANCING AND DEBT (CONTINUED)

Women-owned firms tend to have smaller amounts of debt, even when controlling for revenue size of firm.

1 AMOUNT OF DEBT BY REVENUE SIZE OF FIRM, at Time of Survey (% of employer firms with debt)

≤$1M ANNUAL REVENUES

*Categories have been simplified for readability. Actual categories are: ≤$25K, $25,001-$100K, $100,001-$250K, $250,001-$1M, >$1M. Majority women-owned (N=1,049) Equally owned (N=456) Majority men-owned (N=1,328)

>$1M ANNUAL REVENUES

Majority women-owned (N=759) Equally owned (N=371) Majority men-owned (N=1,877)

FINANCING AND DEBT (CONTINUED)

Women-owned firms with debt are less likely to have collateralized debt compared to men-owned firms.

COLLATERAL USED TO SECURE DEBT¹ (% of employer firms with debt)

53% Personal guarantee 55% 62%

40% Business assets 57% 51%

35% Personal assets 41% 36%

8% Portions of future sales 9% 9%

17%

17% of women-owned

None 10%

firms hold unsecured debt.

10%

Majority women-owned (N=1,972) Equally owned (N=912) Majority men-owned (N=3,513)

Respondents could select multiple options. Response options ‘unsure’ and ‘other’ not shown in chart. See Appendix for more detail.

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

FINANCING AND DEBT (CONTINUED)

Regardless of revenue size, women-owned firms were less likely to use business assets as collateral than similar-sized men-owned firms.

COLLATERAL USED TO SECURE DEBT BY REVENUE SIZE OF FIRM¹ (% of employer firms with debt)

≤$1M ANNUAL REVENUES

60% 51% 50% 51% 44% 41% 37% 35% 35%

8% 9% 8% 19%

12% 11%

Personal guarantee Business assets Personal assets Portions of future sales None

Majority women-owned (N=1,101) Equally owned (N=477) Majority men-owned (N=1,410)

>$1M ANNUAL REVENUES

76% 74% 66% 67% 66% 56% 45% 39% 34%

8% 9% 7%

4% 10% 10% Personal guarantee Business assets Personal assets Portions of future sales None

Majority women-owned (N=813) Equally owned (N=396) Majority men-owned (N=2,017)

Respondents could select multiple options. Response options ‘unsure’ and ‘other’ not shown in chart. See Appendix for more detail. 2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

SHARE OF FIRMS THAT DID NOT APPLY FOR FINANCING, Prior 12 Months¹ (% of employer firms)

57%

Majority women-owned (N=2,880)

Fewer women-owned firms reported sufficient financing as the reason for not applying, and a higher share were discouraged than men-owned firms.

PRIMARY REASON FOR NOT APPLYING² (% of nonapplicants)

Majority women-owned (N=1,568)

Equally owned (N=671)

4,5 DISCOURAGED³ FIRMS’ CREDIT CHALLENGES (% of discouraged nonapplicants)

1 Approximately the second half of 2015 through the second half of 2016.

2 Response option ‘other’ not shown. See Appendix for detail.

3 Discouraged firms are those that did not apply for financing because they believed they would be turned down.

4 Discouraged firms were asked why they believed they would be turned down.

5 Respondents could select multiple options. Response options ‘other’ and ‘unsure’ not shown. See Appendix for detail.

NONAPPLICANTS (CONTINUED)

74% of women-owned nonapplicants regularly use external financing; credit cards are the most frequently used credit product.

26% of women-owned nonapplicants do not use any external financing, similar to 22% of their men-owned counterparts.

NONAPPLICANT USE OF FINANCING AND CREDIT,

1 Products used on a regular basis (% of nonapplicants)

58% Credit card 63% 59%

28% Loan/line of credit 31% 34%

9% Leasing 9% 12%

8% Trade 10% 14%

3% Equity investment 6% 5%

2% Factoring 1% 2%

Business does 26% not use external 24% financing 22%

Majority women-owned (N=1,562) Equally owned (N=671) Majority men-owned (N=2,491)

Respondents could select multiple options. Response options ‘other’ and ‘unsure’ not shown in chart. See Appendix for more detail.

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

43% of women-owned firms applied for financing.

DEMAND FOR FINANCING, Prior 12 Months¹ (% of employer firms)

Among low credit risk firms, women-owned firms less often sought credit.

DEMAND FOR FINANCING BY CREDIT RISK² (% of employer firms)

1 Approximately the second half of 2015 through the second half of 2016.

2 Self-reported business credit score or personal credit score, depending on which is used to obtain financing for their business. If the firm uses both, the

highest risk rating is used. ‘Low credit risk’ is a 80-100 business credit score or 720+ personal credit score. ‘Medium/high credit risk’ is a 1–79 business credit score or a <720 personal credit score.

3 The observation count varies by credit risk.

DEMAND FOR FINANCING (CONTINUED)

Both women- and men-owned firms were most commonly seeking financing for business expansion.

REASONS FOR APPLYING¹ (% of employer firms)

Majority women-owned (N=1,271)

Equally owned (N=566)

Majority men-owned (N=2,314)

67% of women-owned applicants sought $100K or less, compared to 49% of men-owned firms.

TOTAL AMOUNT OF FINANCING SOUGHT (% of applicants)

*Categories have been simplified for readability. Actual categories are: ≤$25K, $25,001-$100K, $100,001-$250K, $250,001-$1M, >$1M. Majority women-owned (N=1,249) Equally owned (N=557) Majority men-owned (N=2,273)

DEMAND FOR FINANCING (CONTINUED)

Women-owned applicants tended to seek smaller amounts of financing even when their revenue size was comparable.

TOTAL AMOUNT OF FINANCING SOUGHT BY REVENUE SIZE OF FIRM¹ (% of applicants)

≤$1M ANNUAL REVENUES

*Categories have been simplified for readability. Actual categories are: ≤$25K, $25,001-$100K, $100,001-$250K, $250,001-$1M, >$1M. Majority women-owned (N=671) Equally owned (N=279) Majority men-owned (N=849)

>$1M ANNUAL REVENUES

*Categories have been simplified for readability. Actual categories are: ≤$25K, $25,001-$100K, $100,001-$250K, $250,001-$1M, >$1M. Majority women-owned (N=541) Equally owned (N=259) Majority men-owned (N=1,381)

CREDIT APPLICATIONS

Similar to men-owned firms, women-owned firms most frequently applied for loans/lines of credit.

FINANCING AND CREDIT PRODUCTS SOUGHT¹ (% of applicant firms)

85% Loan/line of credit 85% 85%

34% Credit card 29% 28%

8% Trade 9% 10%

7% Equity investment 12% 11%

7% Leasing 11% 10%

6% Factoring 5% 7%

Majority women-owned (N=1,275) Equally owned (N=567) Majority men-owned (N=2,324)

Respondents could select multiple options. Response option ‘other’ not shown in chart. See Appendix for more detail. 2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

LOAN & LINE OF CREDIT PRODUCTS

Among loan/line of credit applicants, women-owned firms were less likely to seek lines of credit compared to men-owned firms.

APPLICATIONS FOR LOAN AND LINE OF CREDIT PRODUCTS¹ (% of loan/line of credit applicants)

52% Business loan 54% 50%

36% Line of credit 38% 44%

26% SBA loan/line 21% of credit 22%

14% Personal loan 20% 13%

Auto or 12% equipment 16% loan 17%

8% Cash advance 12% 10%

6% Mortgage 9% 6%

Majority women-owned (N=1,111) Equally owned (N=479) Majority men-owned (N=1,977)

Respondents could select multiple options. Response option ‘other’ not shown in chart. See Appendix for more detail.

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

Women-owned firms considered both chance of success and relationship with lender when applying for credit.

TOP TWO FACTORS¹ INFLUENCING WHERE FIRMS APPLY (% of applicants)

Existing relationship with lender

Perceived chance of being funded

Women-owned firms less often applied at small banks compared to equally owned and men-owned firms.

CREDIT SOURCES APPLIED TO² (% of loan/line of credit applicants)

$$ \ \mathrm T o^{2} $$

1 Respondents could select multiple options. Response options ‘price,’ ‘ease of application process,’ ‘speed of decision,’ ‘flexibility of product offerings,’ ‘referral,’ and ‘other’ not shown in table. See Appendix for more detail.

2 Respondents could select multiple options. Response option ‘other’ not shown in chart. See Appendix for more detail.

3 Respondents were provided a list of large banks (those with at least $10B in total deposits) operating in their state.

4 ‘Online lenders’ are defined as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPal Working Capital.

5 Community development financial institutions (CDFIs) are financial institutions that provide credit and financial services to underserved markets and populations. CDFIs are certified by the CDFI Fund at the U.S. Department of the Treasury

FINANCING APPROVAL

Overall, women-owned firms were less likely to receive all of the financing applied for than men-owned firms.

TOTAL FINANCING RECEIVED¹ (% of applicants)

Majority women-owned 36% 36% 28% (N=1,271)

Equally owned 47% 36% 17% (N=566)

Majority men-owned 44% 33% 23% (N=2,314)

All Some None

Women-owned firms were less likely to be approved for business loans

than men-owned firms but had a higher approval rate for SBA loans.

2,3 APPROVAL RATES FOR LOAN/LINE OF CREDIT PRODUCTS (% of loan/line of credit applications)

Cash advance 79% (N⁴=77-118)74%

Auto or equipment loan 77% (N⁴=156-387)80%

Line of credit 64% (N⁴=488-942)68%

SBA loan/line of credit 61% (N⁴=242-334)50%

54% Mortgage (N⁴=70-139) 74%

52% Personal loan (N⁴=122-160) 55%

47% Business loan (N⁴=509-871) 61%

Majority women-owned Majority men-owned

Share of financing received across all types of financing. Response option ‘unsure’ excluded from the chart. Percent of loan/line of credit applications for each product type that were approved for at least some credit. Response option ‘other’ not shown. See Appendix for more detail. Product approval rates for equally owned firms not shown due to insufficient sample sizes. The observation count varies by gender of owner.

2016 SMALL BUSINESS CREDIT SURVEY | REPORT ON WOMEN-OWNED FIRMS Source: Small Business Credit Survey, Federal Reserve Banks

FINANCING APPROVAL (CONTINUED)

Women-owned firms at all credit risk levels were more often approved for SBA loans compared to men-owned firms.

Low credit risk women applicants were less successful in securing business loans than men-owned firms with similar credit risk.

1,2,3 APPROVAL RATES FOR LOAN/LINE OF CREDIT PRODUCTS BY CREDIT RISK (% of loan/line of credit applications)

LOW CREDIT RISK

MEDIUM/HIGH CREDIT RISK

1 Percent of loan/line of credit applications for each product type that were approved for at least some credit. Response options ‘cash advance,’ ‘mortgage,’ ‘personal loan,’ and ‘other’ not shown due to insufficient sample sizes.

2 Product approval rates for equally owned firms not shown due to insufficient sample sizes.

3 Self-reported business credit score or personal credit score, depending on which is used to obtain financing for their business. If the firm uses both, the highest risk rating is used. ‘Low credit risk’ is a 80-100 business credit score or 720+ personal credit score. ‘Medium/high credit risk’ is a 1–79 business credit score or a <720 personal credit score.

4 The observation count varies by gender of owner.

Both women- and men-owned firms were most successful at small banks.

1,2 APPROVAL RATE BY SOURCE OF LOAN/LINE OF CREDIT (% of startup loan/line of credit applications)

1 Percent of loan/line of credit applications at each source that were approved for at least some credit. Response options ‘CDFI’ and ‘other’ not shown due to insufficient sample sizes.

2 Source approval rates for equally owned firms not shown due to insufficient sample sizes.

3 Respondents were provided a list of large banks (those with at least $10B in total deposits) operating in their state.

4 ‘Online lenders’ are defined as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and Paypal Working Capital. 5 The observation count varies by gender of owner.

28% of women-owned applicants were not approved for any financing. 64% had a financing shortfall, meaning they obtained less than the amount sought.

SHARE WITH A FINANCING SHORTFALL (% of applicants)

Majority men-owned (N=2,292)

Women-owned firms cited low credit scores more often than men-owned firms as their chief credit obstacle.

REASONS FOR CREDIT DENIAL¹ (% of applicants with a financing shortfall)

Women-owned applicants were notably more satisfied with their borrowing experiences at small banks than at large banks.

1,2,3 LENDER SATISFACTION, Select Lenders (% of women-owned applicants approved for at least some financing at source)

Women-owned firms were most consistently dissatisfied by lenders' lack of transparency and by long waits for credit decisions at banks.

1,2,6 REASONS FOR DISSATISFACTION, Select Lenders (% of women-owned applicants dissatisfied with lender)

1 Lender satisfaction and reasons for dissatisfaction shown for women-owned firms. For equally owned and men-owned firms, see Appendix.

2 Response options ‘credit union,’ ‘CDFI,’ and ‘other’ not shown due to insufficient sample sizes.

3 Percentages may not sum to 100 due to rounding.

4 Respondents were provided a list of large banks (those with at least $10B in total deposits) operating in their state.

5 ‘Online lenders’ are defined as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPal Working Capital.

6 Respondents could select multiple options. Response option ‘other’ not shown in chart. See Appendix for more detail.

METHODOLOGY

DATA COLLECTION

The Small Business Credit Survey (SBCS) uses a convenience sample of establishments. Businesses are contacted by email through a diverse set of organizations that serve the small business community.¹ Prior SBCS participants and small businesses on publicly available email lists² are also contacted directly by one of the twelve Federal Reserve Banks.

The survey instrument is an online questionnaire that typically takes 6 to 12 minutes to complete, depending upon the intensity of a firm’s search for financing. The question- naire uses question branching and flows based upon responses to survey questions. For example, financing applicants receive a different line of questioning than nonapplicants. Therefore, the number of observations for each question varies according to how many firms receive and complete a particular question.

WEIGHTING

A sample for the SBCS is not selected randomly; thus, the SBCS may be subject to biases not present with surveys that do select firms randomly. For example, there are likely small employer firms not on one of our contact lists and this may lead to a noncoverage bias. In this report, we control for potential

biases by weighting the sample data so that the weighted distribution of firms in the SBCS matches the distribution of the small (1 to 499 employees) firm population in the United States by number of employees, age, industry, geographic location (census division and urban or rural location), and gender of owner. We collaborate with the National Opinion Research Center (NORC) in order to calculate these weights. The data used for weighting come from data collected by the U.S. Census Bureau. While weighting the data makes the 3 sample considerably more representative of the small firm population, the SBCS is still potentially affected by nonresponse bias, something that should be taken into consideration when interpreting the results.

COMPARISONS TO PAST REPORTS

Because previous SBCS reports have varied in terms of the population scope, geographic coverage, and weighting methodology, the survey reports are not directly comparable across time.

For example, both employer and nonemployer firm results from the 2014 survey are combined into one report (published in 2015) while employers and nonemployers are divided into separate reports for the 2015 and 2016 surveys (published in 2016 and 2017, respectively).

Moreover, geographic coverage and weighting strategies varied from year to year. In the employer/nonemployer combined report using 2014 survey data, geographic coverage includes only 10 states and data are weighted by firm age, nonemployer/employer, number of employees (if employer firm), state, and industry. The employer report using 2015 survey data covers 26 states and is weighted by firm age, number of employees, and industry. The employer report using 2016 survey data includes respondents from all 50 states and the District of Columbia. The data are weighted by firm age, number of employees, industry, and geographic location (census division and urban or rural location).

In addition to being weighted by different firm characteristics over time, the categories used within each characteristic have also differed across survey years (there were three employee size categories in 2015, and five employee size categories in 2016). Further, respondents are weighted according to the composition of firms in the geographic area of coverage.

In addition to population scope, geographic coverage, and weighting differences, some of the survey questions have also changed slightly from year to year, making some question comparisons impossible even when using a time-consistent weighting approach.

1 For a full list of community partners, please see p. 29.

2 System for Award Management (SAM) Entity Management Extracts Public Data Package, Small Business Association (SBA) Dynamic Small Business Search (DSBS), state-maintained lists of certified disadvantaged business enterprises (DBEs), state and local government Procurement Vendor Lists, state and local government-maintained lists of small or disadvantaged small businesses, a list of veteran-owned small businesses maintained by the Department of Veterans Affairs.

3 Age of firm data come from the 2014 Business Dynamics Statistics. Industry, employee size, and geographic location data are from the 2014 County Business Patterns. We use data from the Center for Medicare and Medicaid Services to classify a business’s zip code as urban or rural. Gender of owner and race/ethnicity of owner data come from the 2012 Survey of Business Owners.

METHODOLOGY (CONTINUED)

CREDIBILITY INTERVALS

The analysis in this report is aided by the use of credibility intervals. Where there are large differences in estimates between types of businesses, we perform additional checks on the data to determine whether the difference appears significant. The results of these tests

help guide our analysis and help us decide what ultimately is included in the report. In order to determine whether a difference is significant, we develop credibility intervals using a balanced half-sample approach. Because 4 the SBCS does not come from a probabilitybased sample, the credibility intervals we

develop should be interpreted as model-based measures of deviation from the true national population values. Ninety-five percent cred-5 ibility intervals for key statistics are listed in Table 1. More granular results with smaller observation counts will generally have larger credibility intervals.

Table 1: Credibility Intervals for Key Statistics in the 2016 Report on Women-Owned Firms

Table notes:

1 For profitability, the index is the share profitable minus the share with losses during the 12 months prior to the survey. For revenue and employment growth, it is the share reporting positive growth minus the share reporting negative growth.

2 The share of loan and line of credit applicants that were approved for at least some financing.

3 Percent of applicants

4 Discouraged firms are those that did not apply for financing because they believed they would be turned down.

4 Wolter (2007), “Introduction to Variance Estimation.”

5 AAPOR (2013), “Task Force on Non-probability Sampling.”

PARTNER ORGANIZATIONS

NATIONAL PARTNER ORGANIZATIONS

• Accion U.S. Network

ƒƒ Association for Enterprise Opportunity (AEO)

ƒƒ National Association for Latino Community Asset Building

• National Association of Manufacturers

ƒƒ National Association of Women Business Owners

• NFIB Research Foundation

• National League of Cities

• National Retail Federation

• Opportunity Finance Network (OFN)

• U.S. Chamber of Commerce

AFFILIATES OF NATIONAL PARTNER ORGANIZATIONS

• Accion Chicago

• Accion New Mexico

• Alabama MicroEnterprise Network (AMEN)

AltCap

• Anchor Financial Services

ƒƒ Asian Pacific Islander Small Business Program

• Avenida Guadalupe Association

• BBIF Florida

• CAP Services Inc.

• CDC Small Business Finance

CIELO

• City First Enterprises

• City of Austin Small Business Program

• City of Chicago

ƒƒ City of Dallas—Office of Economic Development

• City of San Diego

• Colorado Enterprise Fund

• Common Capital

• Community Business Partnership

• Community Concepts Finance Corporation

• Community Investment Corporation

ƒƒ Community Loan Fund of the Capital Region, Inc.

• Cooperative Fund of New England

ƒƒ DC Department of Small & Local Business Development

ƒƒ Economic and Community Development Institute

• Entrepreneur Works Fund

• FINANTA

• Gulf Coast Renaissance Corporation

• Green America's Green Business Network

• Fresno CDFI

ƒƒ Golden State Certified Development Corporation

HAP

• Hispanic Economic Development Corporation

• IICDC

• Jefferson Economic Development Institute

ƒƒ Kansas City, Missouri Business Customer Service Center

LAUNCH

ƒƒ Lower 9th Ward Neighborhood Empowerment Network Association (NENA)

MACED

• Main Street Launch

• Main Street Project

• Maryland Capital Enterprises, Inc.

ƒƒ Microenterprise Resources, Initiatives and Training (MERIT)

ƒƒ National Coalition of 100 Black Women Central Florida Chapter

• Natural Capital Investment Fund

• Neighborhood Lending Partners

• NeighborWorks of Western Vermont

• Northern Initiatives

ƒƒ Northwest Pennsylvania Regional Planning and Development Commission

• Ohio Council of Retail Merchants

• Opportunity Fund

• Opportunities Credit Union

ƒƒ Pacific Coast Regional Small Business Development Corporation

• Pacific Community Ventures

• Pacific Island Knowledge 2 Action Resources

• Partners for the Common Good

• Pathway Lending

PIDC

ƒƒ PPEP Microbusiness & Housing Development Corporation

• Rural Enterprise Assistance Project-REAP

ƒƒ San Antonio for Growth on the Eastside, Inc. (SAGE)

• Santa Cruz Community Credit Union

SBCP

• SF OEWD

• South Dakota Retailers Association

• Start Small Think Big

• Tampa Bay BBIC

ƒƒ The Community Economic Development Fund Foundation, Inc.

• The Enterprise Center Capital Corporation

PARTNER ORGANIZATIONS (CONTINUED)

• The Wright Way Up Of Atlanta, Inc.

• Tierra del Sol Housing Corporation

• TILT Forward Network

• TruFund Financial Services, Inc.

• Uptima Business Bootcamp

• Women's Opportunities Resource Center

WORC

• World Beyond Boundaries

FEDERAL RESERVE BANK OF ATLANTA

• Alabama Chamber of Commerce

• Alabama Department of Commerce

ƒƒ Alabama Department of Economic and Community Affairs

• Alabama Micro Enterprise Network (AMEN)

• Alabama SBDC Network

• Albany Business League

• American Sugar Cane League

• BancorpSouth

• Chatham Business Association

• Chattanooga Area Chamber of Commerce

• Cherokee County Chamber of Commerce

• Citizens National Bank

• Clarksville Area Chamber of Commerce

• Coastal Alabama Business Chamber

• Coastal Georgia Indicators Coalition

• Committee of 100

• Community Bank of Mississippi

• Community Enterprise Investments, Inc.

ƒƒ Economic Development Commission of Florida's Space Coast

• Florida Bank of Commerce

• Florida Capital Bank

• Florida Chamber of Commerce

• Florida SBDC at FIU

ƒƒ Florida SBDC at University of West Florida College of Business

• Gainesville Area Chamber of Commerce

• Florida SBDC Network

• Georgia Council for Arts

• Georgia SBDC

• Georgia Department of Community Affairs

• Georgia Florida Alliance

• Georgia Hispanic Chamber

• Georgia Micro Enterprise Network (GMEN)

ƒƒ Greater Fort Lauderdale Convention and Visitors Bureau

• Greater New Orleans, Inc.

ƒƒ Georgia Minority Supplier Development Council

• Gulf Coast Business Council

• Hispanic Chamber of Commerce of Louisiana

ƒƒ Home Builders Association of Greater Knoxville

• Home Builders Association of Tennessee

• Hope Enterprise Corporation

• Huntsville Chamber of Commerce

• Jackson State SBDC

• Jackson State University

ƒƒ Jeff Davis Parish Economic Development & Tourism Commission

• Kingsport Chamber

• Louisiana Chamber of Commerce

• Louisiana Economic Development

• Louisiana SBDC

ƒƒ Meridian East Mississippi Business Development Corp.

• Metro Atlanta Chamber

• Middle Tennessee Association of Realtors

• Mississippi Manufacturing Association

ƒƒ Mississippi Minority Business Alliance, Inc.

• Mississippi SBA

• Mobile Area Chamber of Commerce

• Montgomery Chamber of Commerce

• North Alabama Revolving Loan Fund

• New Orleans Chamber of Commerce

ƒƒ New Orleans Metropolitan Convention and Visitors Bureau

ƒƒ New Orleans Regional Committee of Business Economists

• Northeast Florida Association of Realtors

• NOW Corp

• Pathway Lending

• Regions Bank, Jackson, MS

• South Florida Manufacturers Association

ƒƒ Southern Region Minority Supplier Development Council

ƒƒ Southern University at New Orleans SBDC Management Institute

• SW Louisiana Economic Development Alliance

• Tech Square Labs

• Technology Association of Georgia

• Tennessee Chamber of Commerce

• The New Orleans Board of Trade

PARTNER ORGANIZATIONS (CONTINUED)

• United Bank, Atmore, AL

• United Way of Southeast Louisiana

• University of Georgia SBDC

• University of Georgia SBDC Network

USDA

• Village Micro Fund

• Wells Fargo

• Women's Business Enterprise Council South

FEDERAL RESERVE BANK OF BOSTON

• Cape Cod Chamber of Commerce

• City of Boston

ƒƒ Commonwealth of Massachusetts, Operational Services Division

• Greater Boston Chamber of Commerce

• Greater Concord Chamber of Commerce

• Greater Manchester Chamber of Commerce

• Greater Nashua Chamber of Commerce

• Greater Providence Chamber of Commerce

• HarborOneU

• Interise

ƒƒ Massachusetts Small Business Development Center

• Metro South Chamber of Commerce

• Middlesex County Chamber of Commerce

• New Bedford Area Chamber

ƒƒ New Hampshire Business & Industry Association

ƒƒ North Central Massachusetts Chamber of Commerce

• Plymouth Area Chamber of Commerce

• Retailers Association of Massachusetts

ƒƒ Rhode Island Small Business Development Center

• Souhegan Valley Chamber of Commerce

• Worcester Regional Chamber of Commerce

FEDERAL RESERVE BANK OF CLEVELAND

• Commerce Lexington

• CityWide Development Corp

• Gannon University SBDC

• Dayton Area Chamber of Commerce

• Dayton HRC

• Indiana County Chamber of Commerce

• Kentucky Small Business Development Center

• Youngstown/Warren Regional Chamber

FEDERAL RESERVE BANK OF KANSAS CITY

• Manufacturer & Business Association

• Adams County Economic Development

• Albuquerque Hispano Chamber of Commerce

• Boulder SBDC

• Catholic Charities

• CML Collective, LLC

• Denver Metro Chamber of Commerce

ƒƒ Fab Lab ICC at Independence Community College

• Greater Fremont Development Council

ƒƒ Greater Kansas City Hispanic Chamber Commerce

• Greater Oklahoma City Chamber of Commerce

• Greater Omaha Chamber

• Kauffman Foundation

• KC SourceLink

• McPherson Chamber of Commerce

• Missouri Chamber of Commerce and Industry

• Mountain Plains MSDC

• Nebraska Enterprise Fund

• Nebraska Extension

• NetWork Kansas

• NM Economic Development Department

• North Kansas City Business Council

ƒƒ Office of Minority and Women Business, Kansas Department of Commerce

• OK Dept. of Career & Technology Education

• Overland Park Chamber of Commerce

• REI Oklahoma

• Santa Fe Business Incubator

ƒƒ Southeast Missouri State University-Institute for Regional Innovation and Entrepreneurship

ƒƒ The Colorado Office of Economic Development and International Trade

ƒƒ The Finance New Mexico project (Holly Co publishers)

• Wichita Hispanic Chamber of Commerce

• Wichita Metro Chamber of Commerce

• Women's Business Center

• Wyoming Business Council

PARTNER ORGANIZATIONS (CONTINUED)

FEDERAL RESERVE BANK OF MINNEAPOLIS

• Affinity Plus Federal Credit Union

• African Development Center of Minnesota

• Bemidji Area Chamber of Commerce

ƒƒ Central (CERT) Certification Program, The City of Saint Paul

• Community Reinvestment Fund, USA

• Dakota Resources

• Entrepreneur Fund

• Four Band Community Fund

• Initiative Foundation

• Iverson Corner Drug

• Metro Independent Business Alliance

• MetroNorth Chamber

ƒƒ Metropolitan Consortium of Community Developers

ƒƒ Metropolitan Economic Development Association (MEDA)

ƒƒ Minnesota American Indian Chamber of Commerce

• Minnesota Chamber of Commerce

ƒƒ Minnesota District, U.S. Small Business Administration

• Minnesota Indian Business Alliance (MNIBA)

• MJB home center

• Neighborhood Development Center

• New Ulm Area Chamber of Commerce

• North 65 Chamber of Commerce

• Northwest Minnesota Foundation

• Park Rapids Lakes Area Chamber of Commerce

PGC

Pinnacle

• Progress Plus

• Quarks American Bento

• RP Broadcasting, Inc.

• The Dive Depot

• Top Shelf Hockey Shop

ƒƒ Vadnais Heights Economic Development Corporation

• Wisconsin Indian Business Alliance

• Worthington Area Chamber of Commerce

• BOC Capital Corp.

FEDERAL RESERVE BANK OF NEW YORK

• Bridgeport Regional Business Council

• Capital for Change

ƒƒ Connecticut Business and Industry Association

ƒƒ Connecticut Economic Resource Center (CERC)

ƒƒ Connecticut Office of Business and Industry Development

ƒƒ Connecticut Small Business Development Center

ƒƒ Dept. of Economic and Comm. Dev., Connecticut Office of Small Business Affairs

• Empire State Development

• Endeavor

• Greater Bridgeport Latino Network

• Greater Newark Enterprise Corp.

• Intersect Fund

• Metro Hartford Alliance

• New Jersey Community Capital (NJCC)

• New Jersey Innovation Institute @ NJIT

• New Jersey Institute of Technology

• NJ Economic Development Authority

• NYC Department of Small Business Services

ƒƒ Polsky Center for Entrepreneurship and Innovation

reSET

• Rising Tide Capital

• Rutgers University Graduate School

ƒƒ Statewide Hispanic Chamber of Commerce of New Jersey

• Statewide Hispanic Chamber of Commerce of NJ

• The Business Council of Fairfield County

• The WorkPlace

ƒƒ UCEDC, a nonprofit economic development corporation

• USDA Rural Development

• Women's Center for Entrepreneurship

FEDERAL RESERVE BANK OF PHILADELPHIA

• Delaware Small Business Development Center

ƒƒ Latin American Economic Development Association

• Pennsylvania SBDC Lead Office

• SEDA-Council of Governments

• Upper Bucks Chamber of Commerce

PARTNER ORGANIZATIONS (CONTINUED)

FEDERAL RESERVE BANK OF RICHMOND

• Asheville Area Chamber of Commerce

• Baltimore Community Lending

• Blowing Rock Chamber of Commerce

• Botetourt County Chamber of Commerce

• Carolina Small Business Development Fund

• CommunityWorks

ƒƒ Danville Pittsylvania County Chamber of Commerce

• Falls Church Chamber of Commerce

ƒƒ Franklin-Southampton Area Chamber of Commerce

• Garrett County Chamber of Commerce

• Greater Raleigh Chamber of Commerce

• Greater Winston-Salem Chamber of Commerce

• Greensboro Chamber of Commerce

• Howard County Chamber of Commerce

• Henderson County Chamber of Commerce

• Latino Economic Development Center

• Leadership Maryland

• Loudoun County Chamber of Commerce

• Maryland Capital Enterprises, Inc.

ƒƒ Maryland Economic Development Association (MEDA)

ƒƒ Maryland Governor's Office of Minority Affairs

• Maryland Hispanic Chamber of Commerce

ƒƒ Maryland Southern Region Small Business Development Center

• Natural Capital Investment Fund (NCIF)

ƒƒ Neighborhood BusinessWorks, Maryland Department of Housing and Community Development

ƒƒ North Carolina District Office, U.S. Small Business Administration

ƒƒ North Carolina Small Business and Technology Development Center (NC SBTDC)

ƒƒ North Carolina Small Business Center Network, North Carolina Community College System (SBCN)

• Northern Virginia Chamber of Commerce

• Richmond SCORE

• Roxboro Area Chamber of Commerce

• RVA Works

ƒƒ South Carolina Association for Community Economic Development (SCACED)

• South Carolina Department of Commerce

ƒƒ State Delegation District and State Directors, Congressional Offices

• Unlimited Future, Inc.

• Virginia Peninsula Chamber of Commerce

ƒƒ Virginia Small Business Development Center Network

ƒƒ Virginia Small Business Financing Authority

ƒƒ West Virginia Small Business Development Center

• Windsor-Bertie County Chamber of Commerce

ƒƒ Women Presidents' Educational Organization—DC (WPEO-DC)

• Yadkin County Chamber of Commerce

FEDERAL RESERVE BANK OF ST. LOUIS

• Arkansas Innovation Hub

ƒƒ Arkansas Small Business and Technology Development Center

• Arkansas State Chamber of Commerce

• Communities Unlimited

• Community Services Microbusiness Program

• Community Ventures

ƒƒ eFactory-Missouri State University Business Incubator

ƒƒ Entrepreneur Center at Mississippi Development Authority

• Green River Area Development District

• Justine Peterson (CDFI)

• LiftFund

• Mid-South Minority Business Continuum

ƒƒ Office of Entrepreneurship-KY Cabinet for Economic Development

ƒƒ Southern Illinois University—Office of Economic & Regional Development

ƒƒ Tennessee Small Business Development Center-Memphis

• Winrock International

PARTNER ORGANIZATIONS (CONTINUED)

FEDERAL RESERVE BANK OF SAN FRANCISCO

• Accion San Diego

• California Small Business Association

• Chamber of Commerce Hawaii

ƒƒ College of the Canyons Small Business Development Center

• Clearinghouse CDFI

• Council for Native Hawaiian Advancement

ƒƒ Enterprise Honolulu (Oahu Economic Development Board)

• Fresno SBA Office

ƒƒ Hawaii Alliance for Community Based Economic Development

• Hawaii Green Infrastructure Authority

• Hawaii Small Business Development Center

• Honolulu Business Network

• Local First Arizona

• Los Angeles Regional SBDC

• Main Street BIDCO Capital

• Maricopa Small Business Development Center

• Maui Economic Development Board

ƒƒ National Development Council—Greater Salt Lake Area

• Nevada Small Business Development Center

• Northern Nevada SCORE

• Orange County / Inland Empire Regional SBDC

• Orange County SBDC

ƒƒ Pacific Asian Consortium in Employment (PACE)

ƒƒ Patsy T. Mink Center for Business & Leadership

• SBA, Hawaii District Office

ƒƒ State of Hawaii Department of Commerce and Consumer Affairs Business Action Center

ƒƒ State of Hawaii, Department of Business, Economic Development & Tourism

• The Kohala Center

• University of La Verne SBDC

• USDA Rural Development

ƒƒ Valley Small Business Development Corporation

• Women's Economic Ventures