The United States’ International Development Finance Corporation (DFC) on Tuesday announced the second disbursement of a $ 50 million loan to promote gender equality in the financing of women-owned businesses.

The DFC said the loan distributed through Northern Arc Capital will primarily benefit women-owned businesses as well as products and services benefiting women, as well as businesses in the food security and food security sectors. water, sanitation and hygiene (WASH).

“Many communities around the world are facing serious food security, sanitation and financial inclusion issues, which are negatively impacting women-owned businesses,” said the vice president of the Bureau of CFD External Affairs, Algene Sajery.

“DFC’s support for Northern Arc is an investment in the economic empowerment of women and sends a powerful message of the US government’s support for gender equality in India,” he said.

“A large portion of them are women borrowers and entrepreneurs. A women-led organization, the team strongly believes in diversity and the role women can play in generating positive results for society and for the economy as a whole. help Northern Arc extend funding to many deserving borrowers, ”said Kshama Fernandes, Managing Director and CEO of Northern Arc.

Women-owned businesses around the world are chronically underfunded, the DFC said in a press release, adding that in India, women entrepreneurs face a funding gap of hundreds of millions of dollars, while that small and medium-sized enterprises (SMEs) headed by women face a deficit. in the tens of billions of dollars.

DFC’s US $ 50 million investment will help close these funding gaps. With this loan, Northern Arc will provide expanded funding to its network of inclusive financial institutions, entrepreneurs and small businesses catalyzing traditionally underserved populations to create new jobs and grow their local economies, according to the press release.