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Mar 04, 2025

Question of the Day [Women's History Month]: In what year were women in the U.S. first enabled to get a business loan without the signature of a male relative?

Before this landmark year, female entrepreneurs in the U.S. had to rely on a husband, father, brother, or son to sign off on their dreams.

Answer: 1988 after HR 5050: Women's Business Ownership Act was signed

Questions:

  1. What might be the impact of expanding access to business loans?
  2. Which women do you think would have had the most access to business loans before/after HR 5050?
  3. Where do you see similar disparities in business today? What increased access would you like to see?

Click here for the ready-to-go slides for this Question of the Day you can use in your classroom.

 

Behind the numbers (Forbes):

"[2018 was] the 30-year anniversary of the HR 5050: Women's Business Ownership Act of 1988 (“WBOA”). This was an Act introduced by John LaFalce, a former New York congressman, aimed at aiding the success of women business owners. The passing of this Act recognized how women could change the entrepreneurial landscape and allowed women, for the very first time, to take out business loans in their own name. This is the first legislation that recognizes the importance of female entrepreneurs in the national economy — and it was created a mere 30 years ago.

What exactly was going on before this Act passed? Prior to the passing of this Act in 1988, women were required to have a male relative as their co-signer on business loans. The definition of “male relative” could range from a woman’s husband to her own child. During the committee hearings, one speaker explained that she was able to sign the loan with the help of her 17-year-old son as a co-signer but was otherwise not granted a loan based on gender alone."


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About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.

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