Government grants for felons to start a business and Small Business Grants for Convicted Felons – Of around 100 million citizens residing in the United States of America one in three individuals has a felony record. Ex-felons upon release from jail or prison face unique hardships when it comes to earn and living since the majority of companies and employers use background checks in the hiring process.
This is the reason why felons are attracted to the idea of starting a business of their own to earn a living. Around 3.8% of small business owners in America have criminal records while 1.5% of them have felony records. Felons throughout the United States of America are in desperate need of financing. Luckily there are sources in the form of small business financing and grants which enable ex-felons to turn their business goals into reality.
Highlights of this Post
Can Felons Qualify For Federal Grants And Loans?
Yes there are opportunities available to ex felons. There are government agencies and nonprofit organizations that provide business loans and grants to individuals coming from underserved backgrounds, especially ex-felons who are finding it difficult to get employment after serving jail or prison.
Having a criminal history may be an unfavorable factor to a lot of lenders but it is not a complete disqualifier. A lot of felons have established their own business and have gained success in their entrepreneurial journey after incarceration.
Keep in mind you may be subjected to a criminal background check at the time of applying for financing and there are industry-specific licenses that may be unavailable to previously incarcerated individuals.
How To Get A Business Grant As An Ex Felon?
Formerly incarcerated people can search for business grants near them at the federal, state, and local levels and apply for them to take their businesses off the ground.
Not only government agencies but there are many large corporations and nonprofit organizations that assist formerly incarcerated individuals and felons with business grants and financial assistance programs. Before applying for a program which is important to meet the eligibility criteria such as type of business, industry and the particular need for funds.
The eligibility requirements to qualify for business grants for felons may vary depending on the grantmaker. Few grants have restrictions on the number of employees, time, business, and revenue requirements while others are reserved for specific industry and geographical areas.
Government Business Grants For Felons
An online database known as Grants.gov assists small business owners including felons and enables them to discover immense grant opportunities in the form of federal grant programs.
You need to set up a workspace account on the grants.gov website and search for relevant grants that match your needs and eligibility criteria. The database is administered by 26 federal agencies, for instance the Department of Transportation, Department of Energy, and Department of State.
Next to Grants.gov another popular grant database is GrantWatch which enables ex-felon business owners to search for Free grants for felons and ex felons form government and lots of funding opportunities.
This system contains details about more than 28,000 financial assistance programs and grants among which you can access more than 1200 small business grants.
For this, you need to subscribe to GrantWatch and access the full database. The weekly membership cost is $18 whereas the annual membership cost is $199. You can also use this service without paying any membership fees with limited details about grants completely free.
Around 10 eligible small businesses can receive financial assistance of up to $50,000 through the FedEx Small Business Grant Contest. They’re also eligible to receive assistance up to $4000 in FedEx Office Print and Small Business services.
FedEx also assists other winners with small business grants up to $20,000 and additional perks so that they can take their business off the ground. You can visit the official FedEx website to learn about eligibility criteria and how to apply online.
A lot of cities and states throughout the United States of America have economic development offices that are committed to supporting and promoting local businesses in society.
The Economic Development Office provides information about government funding solutions, tax incentives, and training programs to felons.
For instance, the Office of Business Development in the state of Maine offers tons of grant opportunities that finance local tourism, recreation, business, food, and agriculture business, and so on.
Read also: Government CDL Grants for Felon and Ex-Felons
Business Grants By Corporate And Nonprofit Organizations
Previously incarcerated individuals can access a lot of business grants and funding from nonprofit organizations and corporations. These nonprofit organizations provide second-chance business programs, training, and lots of funding opportunities that are geared toward ex-felons
An amazing business grant that is open to all entrepreneurs living in systematically oppressed groups for instance previously incarcerated people is known as the Transform Business Grant. The program not only offers a micro-grant worth $1000 but also provides a year-long customized business strategy and useful development program.
A nonprofit organization known as LEAP based in Florida works with felons, mostly incarcerated women and assists them to transition smoothly into society and restart their normal life.
LEAP Virtual Entrepreneur Academy is a popular program that teaches business skills to women participants and runs twice a year. The Academy provides a three-month training where students can take classes, design a robust business plan for professionals and a panel of entrepreneurs, and win cash prizes.
The graduates at the end of the program receive a microloan worth $1000. To be eligible for the program you need to have a computer and showcase you are a previously incarcerated woman. The organization covers the cost of the training program and the funding comes from its sponsors and donors.
A full-time year training program designed to assist formerly incarcerated people in developing business skills and gain success in professional business development is known as the Georgetown Pivot Program.
Participants during the course of the program get an opportunity to attend classes, get internship placement, and develop their business idea. The Pivot Pitch Competition provides opportunities for every participant to win business startup funding. Participants were awarded a grant award worth $15,000 in the year 2022 to start their own business.
The eligibility criteria of the program require participants to be 25 years or above in age with a high school degree or a GED diploma. It is also needed to prove they were previously incarcerated over the past five years. The main priority is given to residents of Washington DC.
Even though the Amber Grant is not designed particularly for formerly incarcerated individuals or ex-felons, the Amber Grant is a useful funding option for formerly incarcerated women entrepreneurs.
This grant is funded by Women’s Net and nonprofit organization that assists women owned businesses and provides them with a monthly grant of $10,000 and then an annual grant award worth $25,000. The nonprofit organization offers startup dedicated grants, business category grants as well as nonprofit dedicated grants to eligible candidates. Formerly incarcerated women entrepreneurs can apply for the grant by visiting the official website.
A nonprofit organization known as Determination Incorporated based in Kansas City assess formerly incarcerated people to start or grow their own business.
The Rise Up, Gets Started grant program is an excellent initiative of the nonprofit organization that assists business owners to participate in a one-year-long program where they can access community support, coaching, and mentoring.
At the end of the programs participants need to save an amount of $300 for their business and on top of the savings the corporation will provide a grant award $750. Determination Incorporated also runs the Back To Business Workshop where it works with incarcerated individuals and helps them to develop a business plan.
Felons who want to start their business journey can turn to the Infield Fresh Start Business Grant that helps them to legally register their business and also cover the startup cost.
The winners of the grant program will receive a grand award of $2500 including a free Incfile gold plan. The plan provides free tax consultation, free registered agent services for one year, and corporation services in their state.
Ex-felons looking to apply for the grant need to complete an application online, create a video explaining how business entrepreneurship can impact their life and also submit a sample business plan. The organization accepts applications from individuals including felons three times a year.
NASE stands for National Association for the Self-Employed and offers Growth Grants of up to $4000 to eligible small businesses. The nonprofit provides grants to eligible small businesses every quarter and to be eligible for the grant you need to be a member of NASE.
The nonprofit organization provides a lot of membership options with additional benefits like product discounts and expert advice. Ex-felons or Formerly incarcerated individuals are not deterred from applying for this business grant.
You need to be a member of the organization and then apply for the grant from the NASE official website. Then, fill out the application form and provide a robust business plan and explain why you are in need of assistance and how the money can help to grow your business.
Read also: Emergency Free Housing Grants for Felons in US
Small Business Loans For Felons
Apart from business grants for felons you can also access small business loans that can help you to attain your business goals easily. Consider the following options if you’re opting for small business loans for felons.
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US Small Business Administration SBA Microloans
US Small Business Administration loans are an affordable option to fund small businesses, even for felons looking for ways to start their own business. The loans have strict eligibility requirements and are slow and tedious.
Felons who want to start a small business of their own and take their business off the ground can opt for SBA microloans which enable qualified borrowers to get a loan worth $50,000 with the assistance of SBI-approved lenders. There is no eligibility requirement pertaining to criminal background or felony records with SBA microloans.
However, candidates are required to provide a personal and collateral guarantee. The microloans can be used for capital commitment, supplies, equipment, or machinery and fixtures. It is important to note that SBI does not provide direct loans to other individuals, instead it works with approved lenders and grants a part of the loan.
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Online Small Business Loans
Felons can access small business loans online to reach their goals faster. Even though online loans may not come with flexible and low interest rates or attractive loan terms, they can provide more flexibility when felons find it difficult to manage finances from traditional financial institutions.
Ex-felons face hurdles to qualify for business financing and so based on their financial situation, they can qualify for online business loans such as unsecured business loans for bad credit and startup business loans.
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Business Credit Cards
Another excellent funding resource for former felons is business credit cards. The revenue requirements for availing business credit cards are lenient compared to small business financing solutions and business loans. You need not meet any personal credit score, credit, history, or minimum eligibility criteria of the credit card issuer to receive assistance.
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Microfinance Funds From The State
Many states in the United States of America provide small business loans or some type of financing for residents including felons who want to grow or start their own business.
The amount may differ between $5000 to $8000 and can help to get your business off the ground. For instance, the California opportunity grant is available in the state of California and easy to get unlike SBA loans.
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Funding From Amazon
Felons who want to start an online business and sell products on the Amazon market can avail of loan opportunities at Amazon itself. The e-commerce site has started a loan program for marketplace sellers to finance their online store.
This is because the more sellers Amazon has the more money the site will make to qualify you to be an Amazon seller. The best thing about business loans from Amazon for finance is that there is no paperwork required and loans are available at competitive rates.
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Local Producer Loan Program
Having a business idea related to the food or farming industry can be a local producer loan program offered by Whole Foods. The company started in 2007 has given loans over $22.00 million to date. The loans are designed for food artisans and local small farmers.
Felons are not deterred from applying for this program. The loan amount may vary between $10,000 to $100,000 with a low-interest rate. It is important to note that the money cannot be used for business operating expenses, capital expenditures, and business expansion reasons for instance purchasing animals, equipment, infrastructure and expanding crops.
Business Resources For Felons
There are a lot of resources that provide entrepreneur training programs and useful tools so that formerly incarcerated individuals can start or grow their business operation.
The following organizations and resources focus on assisting previously incarcerated people so that they can get back to society and earn a living through entrepreneurship.
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HelpForFelons.org Felons help
It is a website especially designed to serve the ex-culprits. They do not directly support the ex-culprits with their business rather they have their main focus on the general re-entry into the society. The website contains information and tips regarding everything from legal to educational loans. Click on this page and you will be directed to the links of each state’s programs that carry out felons’ re-entry.
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SCORE Help For Felons
Since the last 50 years, SCORE has successfully helped over 300 chapters across the country. SCORE has a panel of various reputed former business owners, current entrepreneurs and professionals that serve as a guiding light for all the felons. They mentor them by giving free consulting and start up or business advice.
Felons who need such kind of service can reach out to them by visiting the SCORE chapter in your neighborhood or get mentoring online. Their site offers a variety of online courses, articles, templates, webinars, etc.
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Small Business Development Centers (SBDCs)
All the small business owners and people who want to start their own start-up are being helped by the Association of Small Business Development Centers. It is a non-profit network laid out across the entire country. They also connect with local colleges and universities to provide assistance over there too. SBCDs maintain a group of business experts like marketing professions’, accountants and attorneys that help you build and shape your business, numerous seminars, webinars and host-networking events are being conducted by them to help people grow their businesses
A lot of second chance business programs are administered by Defy Ventures to assist formerly incarcerated people to succeed in their lives and reduce the recidivism rate in society.
Potential business entrepreneurs can turn to Defy Ventures and participate in the entrepreneur boot camps, and business accelerators and hone their business skills.
The skills acquired through Defy Ventures will enable them to launch a successful business or grow their business operation.
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Angel Investors
Angel investors are individuals who provide private funding to finance a business startup. The Angel investors in exchange for the financial backing will require compensation from the business owners for instance equity in their business or future royalties.
Business owners are required to prove that they have a robust business idea and good financial success to attract Angel investors to their project. There are a lot of nonprofit Angel investors that have assisted business entrepreneurs to take their business off the ground.
For instance, Rising Tide Capital has an objective to assist communities and individuals to improve their lives through business entrepreneurship. Felons can also fund their business startup by looking for Angel investors.
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Freelancer Marketplaces
A lot of felons after being released from jail or prison decide to start a low-investment business from their own home. This way they need not worry about signing leases or credit checks.
Starting a business from home enables them to work remotely. Many freelance marketplaces enable people to become successful business entrepreneurs for instance marketing communications, website design, freelance writing, or graphic design.
The three popular freelance marketplaces that enable fellows to work independently and find clients are Guru, Freelancer, and Upwork. The websites act as intermediaries that handle payment securely and enable individuals to work with clients globally or locally with ease.
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GoFundMe
GoFundMe is a trust-worthy financing site that helps people who need financial assistance. They have helped more than $3 billion individuals in earning a living. Mostly, people use GoFundMe to fill their education or medical expenses. If you want some funding, you first need to create a campaign and share as much as you can on social media. People who find your idea unique or relatable can fund you using this platform. Hence, this is a perfect solution to suffice your financial need.
An American public benefit corporation based in New York Brooklyn is known as Kickstarter. This is a popular crowdfunding platform that focuses on creativity. The mission of Kickstarter is to bring unique and creative projects to life. If you’re looking for funding opportunities for felon you can opt for Kickstarter.
Felons can use the crowdfunding site of Indiegogo to finance their innovations and new product ideas. Private institutions and organizations support a lot of crowdfunding efforts and this makes them amazing business ventures for unique ideas.
If you want to learn more aspects of how to launch and manage your campaign you can take guidance from crowdfunding experts. With the use of Indiegogo, you can avail important resources and get connected to Angel investors for felons, prototypers, designers, manufacturers, and retailers and take your product or services to the market.
No matter whether you are an inmate or a post inmate you can learn significant business as well as technology skills with the assistance of the Last Mile. Last Mile is a popular nonprofit organization that assists inmates in building their portfolios within their web development shop, working on projects, and entering the technology job market after being released.
An incubator program developed in Brooklyn NY is Re-foundry which assists formerly incarcerated people to grow and expand their businesses. The program teaches them to repurpose reclaimed items into home furnishing. The mentors of the program teach incarcerated participants to build a resume of their skills, succeed in interviews, and launch their businesses.
Business entrepreneurs who are looking for opportunities to finance their businesses can turn to venture capital, a community development financial situation that is dedicated to providing capital and funding to second-chance businesses.
It caters to formerly incarcerated individuals and gives them funding to start or expand their business operations. The resource also assists in terms of business planning, financial reporting, budgeting, or mentorship resources.
Project Remade is an organization that assists formerly incarcerated individuals to take part in a 12-week entrepreneurship program and hone their business skills.
The entrepreneurship program also comprises a graduation ceremony at Stanford Law School where incarcerated graduates can present their ideas and business strategies to executives.
The program will not only hone your business skills but will also introduce you to expert professionals in the business sector. Felon students get connected to mentor teams that help them to develop business plans.
Conclusion
Finding Angel investors or starting a business for felons is an ideal situation for individuals who are looking to restart their lives and earn a living after being released from jail or prison. Accessing the aforementioned business grant programs will help felons to ease their financial burden. There are both federal and private agencies that provide an array of resources to individuals who are looking for business grants or business loans with low-interest rates.
Frequently asked Questions
Are there available grants for felons to start a business in the united states
Yes, if a felon want to start a business there are various grants such as FedEx Small Business Grant, State and Regional Small Business Grants, Federal Small Business Grants, Small Business Loans for Felons is there to help felons and ex felons.
Where can a felons get grants to start a business in the united states
You can find grants to start a business for felons by accessing Grants.gov, GrantWatch. these are easy to access resource that can help felons to start a small business.
What are the small Business Loans are available for felons to start a business
Small business loans grants for felons can increase their chance to make their business at new level. basically there are 3 types of small business loans available for felons
1. U.S. Small Business Administration (SBA) Microloans
2. Small Business loans Online
3. Business credit cards to get credit for business
I am A Felon, How can i get help to start My new Business
If you are a felon and want to start a new business, there are many ways that can help you with business grants.
1. Federal Government Grants for felons
2. Small Business Administration Microloans
3. Microfinance Loans from the State for felons
4. Online Crowdfunding Websites
5. Angel Investors
6. Entrepreneurship Programs for felons
7. Score and local Programs