Washington, Mar 3: The United States International Development Finance Corporation (DFC) on Tuesday announced the second disbursement of a USD 50 million loan to promote gender equity in financing of women-owned businesses.
The DFC said the loan distributed trough Northern Arc Capital will primarily benefit women-owned businesses as well as products and services benefitting women, along with businesses in the food security and water, sanitation and hygiene (WASH) sectors.
“Many communities across the globe face acute food security, sanitation, and financial inclusion challenges, which adversely impact women-owned enterprises,” said vice president for DFC’s Office of External Affairs Algene Sajery.
“DFC’s support for Northern Arc is an investment in women’s economic empowerment and sends a powerful message of US government support for gender equity in India,” he said.
“A large proportion of these are women borrowers and entrepreneurs. A women-led organisation, the team strongly believes in diversity and the role women can play in generating positive outcomes for society and for the economy as a whole. The investment by US DFC will help Northern Arc expand financing to many such deserving borrowers,” said Northern Arc MD and CEO Kshama Fernandes.
Women-owned businesses across the globe are chronically underfunded, the DFC said in a media release adding that in India, female entrepreneurs face a financing gap of hundreds of millions of dollars, while women-led small and medium enterprises (SMEs) face a gap in the tens of billions of dollars.
DFC’s USD 50 million investment will help close these financing gaps. With this loan, Northern Arc will provide expanded financing to its network of inclusive financial institutions, entrepreneurs and small businesses catalysing traditionally underserved populations to create new jobs and grow their local economies, the media release said. (PTI)
Follow our WhatsApp channel