Women-owned businesses are closing the gap in small business loan approvals, but disparities in funding amounts persist, according to the annual Biz2Credit Women-Owned Business Study.

The study, which analyzed more than 53,000 business loan applications, found that 36% of loan requests from women-owned firms were approved in 2024, up from 35% in 2023. By contrast, the approval rate for men-owned businesses was 29% last year, a decline from 30% the previous year. Despite the higher approval rate, men continued to secure larger loan amounts, averaging $80,140 compared to $67,035 for women-owned businesses.

“The funding rate and average loan amount for women-owned businesses rose in 2024, which is good news,” said Rohit Arora, CEO and co-founder of Biz2Credit. “Women-owned businesses have significantly narrowed the funding gap, though they still receive about 20% less than their male counterparts.”

The study also found that women-owned businesses experienced a 15% increase in average annual revenue, reaching nearly $520,000 in 2024. However, expenses also surged, rising 38% year-over-year, reflecting broader economic challenges such as inflation.

Other key findings include:

• Loan approval rates: Women-owned businesses had a 36% approval rate in 2024, compared to 35% in 2023, while men-owned businesses saw a decrease from 30% to 29%.
• Average loan size: Women secured an average of $67,035 in funding, a 25% increase from 2023, while men received $80,140, a 7% increase.
• Business age and credit scores: Women-owned businesses averaged 72 months in operation, still trailing men-owned businesses at 86 months. The average credit score for women business owners increased to 653, up 10 points from 2023, while men’s scores rose to 670.
• Top states for financing applications: California led with 12.8% of applications from women-owned businesses, followed by Florida (12.5%) and Texas (10%).
• Industry trends: The largest share of loan applications from women-owned businesses came from the services sector (14.9%), followed by healthcare and social assistance (14.5%) and retail trade (13.5%).

While the study highlights progress in financial accessibility for women entrepreneurs, challenges remain. Rising expenses, economic uncertainty, and persistent funding disparities continue to impact women-owned businesses, even as they strengthen their foothold in the marketplace.

According to the U.S. Census Bureau, women-owned businesses generated an estimated $2.1 trillion in revenue in 2024 and employed 11.4 million workers. The National Women’s Business Council reports that there are now 14.5 million women-owned businesses in the U.S., accounting for nearly 40% of all businesses, an 11.5% increase since 2019.

The Biz2Credit Women-Owned Business Study evaluates financial metrics such as revenue, expenses, business age, credit scores, funding rates, and loan amounts based on loan applications submitted through the Biz2Credit platform.