WeTheChange is raising startup capital for the Signatory Investment Fund, a pilot loan fund for our members that responds to the persistent capital gap for women-owned businesses and demonstrated needs within our community.
Data consistently shows that women-led businesses are more stable and profitable—yet women leaders lack access to the same capital as men, to the tune of $1.7 trillion globally for small and medium-sized women-owned businesses. Service businesses, a large proportion of the WeTheChange membership, are particularly starved for funding because banks rely heavily on cashflow in evaluating their creditworthiness.
“Women-owned businesses continue to be underserved by everyone from venture capital to SBA loans, and options are particularly slim for service businesses,” says Director of Strategic Partnerships Lindsay LaShell. Lenders are also missing out on the purpose-led business opportunity, she adds. “There are no investment vehicles that focus on B Corps, despite studies showing that these businesses are more resilient through tough economic times.”
LaShell, who is leading development of the Signatory Investment Fund, conducted a business needs survey and found significant and immediate demand for financing just within the existing WeTheChange network. The findings verified the need for the fund and will inform its development.
- Demand is high: 87 percent of respondents said they would or might benefit from access to a fixed-interest loan from WeTheChange.
- Capital needs are diverse: Respondents expressed a need for loans ranging from $10,000 or less to $250,000 or more, with clusters in the middle ranges. They were particularly interested in loans at rates of 5% or less.
- Funds drive growth and impact: More than 55% of respondents would use the money for marketing, growth or outreach; the same percentage would use it to develop new services, products or locations. Significant numbers said they would add or retain employees, or expand or maintain impact practices, and only a third said they’d be refinancing existing debt.
Data repeatedly shows that women leaders positively affect profitability, innovation, ethics and employee satisfaction. Filling the capital gap for current and future WeTheChange members will mean more good jobs created, more positive impact on communities and the environment, and more resilient businesses. That’s not just good for our members; that’s good for everyone.
See the video below for an introduction to the Signatory Fund.