❊ Business Loans for Women Only. A Bright Idea or a Dud?

Is it a good idea or a bad idea to create a bank loan that is specifically targeted at female entrepreneurs and business owners?

The International Finance Corporation (part of the world bank) and Lebanon’s BLC Bank have partnered together to create the We Initiative to do just that. They explain the raison-d’etre of the initiative as such:

Despite women owning 30 percent of the country’s small and medium enterprises, in Lebanon only 3 percent of loans are granted to female entrepreneurs

That is insane not only because it is discriminatory, but because it is bad business. The only determinants of whether or not a loan should be granted is the viability of a business and its proven record. By not giving loans to women, the banks are effectively leaving money on the table. It is testimony to their incompetence that something like the We Initiative needed to be created.

Or is it? Some of the most creative Lebanese minds with potentially great business plans are female. So it’s really surprising why the banks are holding off from trusting them with investment money. Could there be another reason?

Could the withholding of loans from women be part of a bigger picture in which Lebanese women are routinely deprived of their economic and social sovereignty? Could this be an extension of other measures in Lebanon that put “a woman in her place”, measures that prevent them from opening bank accounts for their children, traveling alone or passing their nationalities to their offsprings?

If that is the case, then we should all celebrate initiatives such as the We Initiative as a breath of fresh air in Lebanon, and I really hope that it helps make many women rich and independent.

Happy mothers’ day to you all..