Scraping together capital to start a business is a feat for any entrepreneur. But obtaining funding for an LGBTQ-owned business can be more challenging. Not only are LGBTQ founders more likely to be ‘underestimated’, but also because legal protections against discrimination remain uneven across the country.
However, LGBTQ businesses play a significant role in the US economy. In 2025, LGBTQ businesses contributed $1.7 trillion to the US economy. And, in 2024, one in ten entrepreneurs who started their businesses identified as LGBTQ. That share marked a 50% increase from 2023 and brings LGBTQ representation in entrepreneurship in line with the general population.
Funding challenges for LGBTQ-owned businesses
While a landmark 2020 Supreme Court ruling (Bostock v. Clayton County) extended federal employment protections against LGBTQ discrimination nationwide, that ruling doesn't cover credit and lending. Only about 21 states plus D.C. currently have explicit protections against discrimination in credit and lending based on sexual orientation or gender identity—meaning the majority of LGBTQ entrepreneurs seeking a business loan or who need help with business financing aren't guaranteed the same legal protection everywhere they might apply.
In addition to lacking legal protection from discrimination in many states, the LGBTQ community is also more likely to struggle with financial instability, with higher rates of poverty and homelessness—and lower income—than the general population.
That instability shows up directly in how LGBTQ entrepreneurs fund their businesses. Gusto's own research found that 85% of LGBTQ entrepreneurs relied on personal savings or assets to start their business in 2023, compared to 73% of all entrepreneurs, and a 2024 analysis by regional Federal Reserve Banks found LGBTQ-owned businesses were more likely to be denied full financing than non-LGBTQ-owned firms, despite applying for private financing at similar rates.
This difficult environment is probably one reason why more than 60% of LGBTQ entrepreneurs who started a business in 2024 did so to be their own boss, compared to less than half of non-LGTBQ new entrepreneurs.
Luckily, thanks to the power of the internet and its ability to connect people—and the advocacy of National LGBT Chamber of Commerce (NGLCC) and others—there are more and more business resources available directly to the entrepreneurs wherever they are.
Here are a few places LGBTQ entrepreneurs looking for funding can start, beyond traditional options like a small business loan from the U.S. Small Business Administration or other government-backed loans.
Pro tip: Before you approach any of them, make sure you've got a solid business plan in hand—most lenders and investors will want to see one before they'll talk numbers.
9 funding options for LGBTQ entrepreneurs
1. Seek out microlenders
Need a smaller loan to get started? There are organizations that offer microloans specifically for small businesses, particularly disadvantaged or minority-owned ones. One such organization is Accion Opportunity Fund (formed from the 2020 merger of Accion's U.S. network and Opportunity Fund), which offers microloans generally starting at $5,000, up to $250,000, and focuses on businesses that have difficulty accessing traditional credit.
Traditional banks are stepping up too, learning to understand—and serve—the unique challenges LGBTQ business owners face.
2. Try online lenders
Nowadays, there are also numerous online lenders whose loans are often easier and faster to get than a government or bank loan—though the interest rates can be higher.
Take a look at online lenders such as OnDeck or American Express Business Blueprint (formerly Kabbage), which offers a business line of credit. LGBT-owned businesses used to be limited by geography, but online access to loans and other forms of funding can help entrepreneurs in areas that are less LGBTQ-friendly.
3. Consider crowdfunding
Crowdfunding lets you raise money directly from your community, customers, and supporters—no loan or credit check required. IFundWomen, now operating as IFW by Honeycomb Credit, runs a dedicated program to fund queer-owned businesses, pairing crowdfunding campaigns with business coaching. General platforms work too, and the right one depends on your goal:
Kickstarter uses an all-or-nothing model—you only receive funds if you hit your goal, which works well for product-based businesses with a clear, fundable target.
Indiegogo recently rebuilt its platform and now also uses fixed, all-or-nothing funding.
This can be a particularly good fit for LGBTQ entrepreneurs because many LGBTQ founders are motivated by community impact, and crowdfunding lets you tell that story directly to people who want to support it. Gusto found that LGBTQ entrepreneurs were 30% more likely than non-LGBTQ entrepreneurs to say they started their business to have a positive impact on their community.
4. Turn to community development financial institutions (CDFIs)
Community development financial institutions (CDFIs) are private organizations that are fully focused on lending to low-income or disadvantaged individuals and businesses in their communities.
CDFIs can come in four forms: banks, credit unions, loan funds, or venture capital funds, such as Backstage Capital. If you aren’t able to qualify for a business loan at a traditional financial institution, find a CDFI near you.
If your business's work intersects with climate justice or environmental resilience for queer and trans communities specifically, the Astraea Lesbian Foundation for Justice offers grants of $5,000–$30,000 for that niche — though it's primarily a funder of nonprofits and advocacy work, not general small business capital.
5. Join StartOut
StartOut is a nonprofit for LGBTQ entrepreneurs offers many resources, including an investor portal that connects LGBTQ-owned startups with 500+ investors. This nonprofit for LGBTQ entrepreneurs is on a mission to drive economic empowerment for the community, offering resources including an investor portal that connects LGBTQ-owned startups with 500+ investors.
Standard membership costs $125 annually and gives you access to the portal, letting you post about your business to promote it and potentially obtain funding from accredited investors. StartOut also offers free 12-month memberships to entrepreneurs from historically underrepresented groups within the LGBTQ community, so cost doesn't have to be a barrier to joining.
The organization provides numerous mentorship opportunities and helps LGBTQ business owners find access to capital.
6. Look for angel investors
Gaingels, an LGBT-owned and operated angel investing syndicate, is the first of its kind and is certified by the NGLCC. It provides "growth capital and expertise for companies that have at least one LGBT founder, senior C-level executive or board member" and, as of 2026, its community has invested more than $1 billion across over 2,600 investment rounds in 2,400+ companies.
Business owners present to Gaingels members, and even if they don't receive an offer, the organization is keen to offer feedback and introductions.
Another angel investing organization, Pipeline Angels—now part of the Institute for Entrepreneurial Leadership (IFEL)—focuses on investing in women and nonbinary femme entrepreneurs.
7. Get NGLCC-certified
In addition to advocating for LGBT-owned businesses, the NGLCC is the only organization that certifies them—through its LGBT Business Enterprise (LGBTBE) certification. Getting an LGBTBE-certification gives your business a leg-up for networking and landing contracts, but it can also help if you're seeking funding. Getting NGLCC-certified gives your business a leg-up for networking and landing contracts, but it can also help if you’re seeking funding. While the NGLCC doesn’t directly fund businesses, it can help connect you with lenders that do.
For example, you can work with the NGLCC’s financial service partners, which have programs designed to help provide capital and scaling support for diverse-owned companies, including LGBT-owned, according to Lovitz.
NGLCC-certified businesses also get access to mentorship, as well as scholarship opportunities to attend the Tuck School of Business’s Executive Education program at Dartmouth. This program equips business owners with the skills and tools they need to get investment ready.
Getting certified can also help your business look better to lenders. “One of the best ways for an LGBT company to gain access to all of the information and resources that are out there for them is to get certified as LGBT-owned,” Lovitz explains, “because that is one of the criteria that many of the banks and other institutions look for to ensure your business is solvent and ready for success.”
8. Attend conferences
Attending NGLCC’s conferences can provide ample opportunities for small businesses looking for funding. Both NGLCC and other professional organizations have “Shark Tank”-like programs designed to help small businesses get stage time in front of investors and, in some cases, win prize money.
Many lenders attend the NGLCC conferences, including large financial institutions, credit unions, and microloan institutions, so LGBT-owned small businesses have the opportunity to connect with them and learn about their options.
Other conferences to attend where you can expand your network include:
Out & Equal’s Workplace Summit
9. Join your local LGBT business chamber
If your city or region has an LGBT business chamber of commerce, join it. It will not only connect you with local businesses and resources—which might include financial institutions—but there are numerous educational opportunities.
The NGLCC has over 50 local affiliate chambers across the country. They offer educational programming for members, which often includes financial literacy and investability as topics.
Fortunately, there are an ever-increasing number of resources to help LGBTQ-owned businesses access capital and grow successfully—and other promising signs of progress, too.
Frequently Asked Questions
Are there loans specifically for LGBTQ-owned businesses?
There are no loans exclusively for LGBTQ-owned businesses, but microlenders, CDFIs, and online lenders are all accessible options that often serve disadvantaged or minority-owned businesses. Organizations like the Accion Opportunity Fund specifically focus on businesses that have difficulty accessing traditional credit.
What is a CDFI and how can it help LGBTQ entrepreneurs?
A community development financial institution (CDFI) is a private organization focused on lending to low-income or disadvantaged individuals and businesses. CDFIs can take the form of banks, credit unions, loan funds, or venture capital funds, and are a strong option if you do not qualify for a traditional business loan.
What is NGLCC certification and how does it help with funding?
The National LGBT Chamber of Commerce (NGLCC) is the only organization that certifies LGBT-owned businesses, and getting certified can make your business more attractive to lenders. Certified businesses also gain access to financial service partners, mentorship, and scholarship opportunities that help owners become investment-ready.
What is StartOut and how does it support LGBTQ entrepreneurs seeking funding?
StartOut is a nonprofit for LGBTQ entrepreneurs that offers an investor portal connecting LGBTQ-owned startups with accredited investors. A premium membership ($125 annually) gives business owners access to the portal and the ability to promote their business to potential funders.
How can attending NGLCC conferences help LGBTQ business owners find funding?
NGLCC conferences bring together lenders, large financial institutions, credit unions, and microloan institutions, giving LGBTQ-owned businesses direct access to potential funders. The conferences also feature pitch competitions with cash prizes, offering small businesses stage time in front of investors.
How can joining a local LGBT chamber of commerce help with funding?
Local LGBT chambers of commerce connect business owners with nearby financial institutions and offer educational programming that often covers financial literacy and investability. The NGLCC has over 50 affiliate chambers across the country.
