Women entrepreneurs are driving economic growth in the U.S., representing 39.1% of all companies while employing 12.2 million workers, according to the 2024 Wells Fargo Impact of Women-Owned Businesses report. Female founders flourished during the pandemic as well, adding 1.4 million jobs and nearly $580 billion to the national economy from 2019-2023.
However, women still lag behind men in investment opportunities and venture capital representation. Attempting to bridge that gap is Impressia Bank, a division of CNB Bank created and managed by women.
Launched in May 2023, the bank provides financial services along with educational opportunities, grant support and networking capabilities. Impressia operates from the offices of CNB’s sister division, ERIEBANK, in Seven Hills, Ashtabula, Mentor and Woodmere. Impressia president Mary Kate Loftus said that, despite a booming women’s economy, female-owned enterprises still struggle to find loans and other venture-growing resources.
“We looked at the data and the percentage of women in leadership, and said, ‘Wow, this is amazing, we have really strong leaders, but our book of business doesn’t match,’” said Loftus, a 25-year banking industry veteran. “So, we started digging into the data, and started talking to women and holding focus groups. We weren’t serving women in the way they want to be served.”
Local anecdotes from entrepreneurs back up underwhelming nationwide investment figures, added Loftus. For example, only 2% of U.S. startup investment goes to women, even as they comprise 38% of founders, according to research by the European Investment Bank, the lending arm of the European Union.
The lack of women in venture capital is another hurdle in an already inequitable funding ecosystem. Today, only 4.9% of VC partners are female, and of that percentage, women of color comprise less than 1% of funders.
A conservative post-COVID banking climate is a further hinderance to many women-led ventures, said Anne Hartnett, co-founder of Cleveland real estate management and development company Harness Collective. Considering this slow-moving environment, Hartnett and fellow founder Andria Loczi were “thrilled” to tap Impressia’s unique assets, she added.
“Anyone trying to start up or have any type of risk, or not having a lot of leverage, is not bankable right now,” said Hartnett. “To have this niche bank with a specific focus on women in business is transformative.”
A little respect
Harness Collective was created, in part, to assist other women in developing their own businesses, said Hartnett, who says she’s been a relentless go-getter since leading the neighborhood babysitting service in middle school. In recent years, Hartnett and business partner Loczi purchased the Vitrolite building in Ohio City’s Hingetown neighborhood, populating the space with startups managed entirely by women. Among these endeavors is Harness Cycle, an indoor cycling studio that celebrated its 10th anniversary earlier this year.
Longevity requires funding, with Hartnett capitalizing on Impressia’s nimble underwriting abilities to get a loan quickly. Operating as a niche institution means avoiding the complex bureaucracies that often slow the loan application process at larger banks, Hartnett said.
Harness points business owners to Impressia for lines of credit and all-important relationship building. Just as critically, these women are making banking inroads even at the early stages of their company, said Hartnett.
“(Impressia) is creating a scalable model that focuses on a bigger picture when looking to lend,” she said. “I see them as a long-term partner that we’re referring our clients to. They support your growth, and they’re focused on education, too, so their clients have access to the coaching and wealth building that often happen too late for entrepreneurs working in silos.”
Impressia partners with founders at every level of the entrepreneurial journey – from idea formation to established companies seeking additional funding. As a federally regulated institution, the bank also opens accounts for male entrepreneurs, noted Impressia president Loftus.
Although Impressia does not currently have hard data on client success, increasing founders’ net worth remains the mission, she said.
“It’s very early to draw any conclusions, but we have success stories,” Loftus said. “You have women that feel so respected, like the way we’re delivering the experience works for what they need. Those kind of stories tell me we’re on the right track.”
Expect the expected
Impressia is not the only area bank with an eye on female business ownership. Huntington Bank supports minority- and women-owned businesses through loans and planning support. Key4Women, meanwhile, was launched in 2005 by KeyBank in response to a largely unfriendly lending environment, said program director Rachael Sampson.
“Women succeed when they’re supporting each other’s businesses,” Sampson said. “They have the tools, the resources and the learning opportunities to give them the strength outside of just business capital, whether it’s leadership development, dealing with imposter syndrome, and too many other things that hold women back.”
Sampson points to only a few decades ago, when women could not open their own checking account until the 1974 passage of the Equal Credit Opportunity Act. Key4Women reaches modern-day program participants via forums and pop-up events, building a robust entrepreneur network where good advice is priceless, said Sampson.
Key4Women has loaned $12 billion to female owners nationally since its inception, while also building an awareness on entrepreneurship best practices. .
“An old adage says, if you want go fast, go alone, but if you want to go far, go together,” said Sampson. “The power of connections has always been a guiding principle for Key4Women.”
Women have certain societal expectations as mothers or caretakers, said entrepreneur Anne Hartnett, herself a mother of four. Yet, there is an almost incalculable value in pulling together a segment of dreamers in search of financing, camaraderie and smart business counsel, she said.
“There’s so much in business that’s unpredictable, but there’s so much that’s predictable,” said Hartnett. “The more you can plan for the expected before you ever sign a lease or apply for a loan, then everything moves a lot faster.”
