Did you know that there are several kinds of government assistance for convicted felons in the USA that are ideal for individuals who want to start a small business? In this post, we will help you know about them and understand how you can get one!
Finding a job for those who have committed a crime can be challenging. According to various studies, a huge number of ex-prisoners do not have any source of earnings in the initial years after their release. Having a not-so-impressive record can create a huge impact on those who are looking for ways to get jobs, carrying a huge stigma.
This is primarily the reason why they are under the poverty level, resulting in them getting in crimes again.
Or else, they can start a business of their own. However, it is important to understand that this is another path with a lot of challenges, like training and funding. Therefore, the federal government offers assistance to felons in the United States for lending some support. Government assistance for convicted felons is offered by various agencies, charities, and non-profit organizations, offering grants to micro-loans to start a business.
So, before diving deeper into the subject, let us have a quick understanding of what government grants are all about!
What Do You Mean by a Government Grant?
Grants are a form of assistance provided by the federal, state, or local government through money that is not required to be paid back. The assistance specifically targets certain groups of people, especially those with low-income or health issues, to cover their basic necessities, such as food, education as well as business startup costs.
However, it is important for people to know about government assistance for convicted felons. Also, they need to compete with other businesses for grants and other financial assistance.
The good thing is that there are some foundations, companies, multinational corporations, and other entities that offer grants and loans for felons.
What is Government Assistance for Convicted Felons?
The federal government has a grant database, grants.gov, which has information about various assistance programs. All you need to do is search the database by a keyword, such as a program name, fund type, category, eligibility, etc., to find the relevant grant with ease. It is better if you search with more general terms – for example, “felons”, “startup”, “entrepreneurs”, etc. You can apply directly from there!
Below we have made a list of some government assistance for convicted felons that you can apply for:
Workforce Investment Act Grant
This program aims to fund programs that mentor, train basic skills, and provide job training for ex-felons. Felons who were sentenced as adults and are currently more than 18 years old of age may be able to get benefits from such programs. However, this program excludes the sex offenders. Remember that it’s a training program, so it doesn’t provide you with direct employment, but it increases your value in potential employers.
The Second Chance Act
The Second Chance Act is a good program that also provides mentoring and job advice. It is administered by the Bureau of Justice Assistance in every state, and there may be some differences in their eligibility requirements. Visit the office and ask if you are eligible for the program.
The Prison Entrepreneurship Program
Several state-based programs can help convicted felons to connect with people, businesses, companies or organizations that can help them find jobs or provide financial assistance to help the convicted felons to start their own entrepreneur career. The grants are typically small, but we recommend ex-felons to apply anyway because you can never tell what comes next as an opportunity.
Small Business Association Grant
The Small Business Association office offers various programs that promote entrepreneur and small business started by people who are at risk, including convicted felons. The financial assistance usually comes in the form of loan with low-interest rate and long repayment time. There are some grants too, although the competition is quite hard.
Angel Investors
First off, let’s admit that finding an independent business investor is not easy at all, especially for convicted felon. However, it is not impossible. All you need is a solid business plan and bright idea. You also need to be able to present yourself well. If you do have these two factors, then you may have a chance getting an angel investor for your business. Alternatively, looking for help from family members and friends can also help.
Small Business Administration programs
The Small Business Administration (SBA) offers assistance for felons that includes free training and loans. These programs especially provide support and help to entrepreneurs in establishing their businesses. Depending on your situation, you might be eligible for most of the programs.
Boots to Business is an entrepreneur, and educational training program, provided by the SBA to give an overview of what running a business involves by offering to learn about business ownership fundamentals, skills, and resources. The program is normally two days long, following which the participants have the ability and access to the SBA’s B2B Revenue Readiness online course. With this program, felons can get support for the business for five years.
Federal Student Aid grants
Mostly, starting a business requires additional education with relevant training that can improve the venture for felons. For this, the government has made it more affordable and obtainable through student aid.
The Federal Supplemental Educational Opportunity Grant, or FSEOG, is renowned assistance for undergraduate students with “exceptional” financial need and expertise. The expense is from the government mostly ranges from $400 to $4,000. It is useful for getting the necessary training. Keep in mind that the priority for distributing grants is given to Federal Pell Grant recipients.
Department of Labor grants
The Department of Labor of the United States also offers various grants and assistance programs for the welfare of convicted felons, along with the support to establish a business. These aids basically cover housing, small business expenses, and a few of the additional costs. Keep in mind that anyone is eligible to apply for this assistance from the government, making the competition more challenging and fierce.
SBA Microloans
Microloans can be an excellent way to help people to establish a business in the United States. Because of their easy accessibility, these loans are incredibly popular with people with little or no credit history.
The SBA’s microloan offers small businesses with necessary loans of up to $50,000 with an average of around $13,000, in partnership with local non-profit community-based organizations. These authorities also issue and administer the loans. The interest rate in which the loans are provided is averaging between 8% and 11%. The distributed fund is useful for working capital, supplies, and inventory, furniture or fixture, types of machinery and equipment.
The best part is that these loans usually get approved easily by the lenders for the felons, even without having an excellent credit score or expansive credit history.
Grants.gov
Grants.gov is a resource for federal small-business grants, open to entrepreneurs of all backgrounds, including convicted felon. This database provides access to more than 1,000 grants managed by 26 government agencies. For example, the Department of Energy, Department of State, and Department of Transportation.
To apply, you first need to register your business on the System Award Management platform and obtain a unique entity identification number. With this number, you can then create an account on Grants.gov to submit your grant applications.
Economic Development Offices
In many states and cities, there are economic development offices with the concern on boosting local businesses. These offices offer details on government funding, training programs, and tax incentives in your area.
For instance, Maine’s Office of Business Development offers different grants, like ones for recreation, local tourism, and agriculture, supporting various types of businesses.
Other Sources of Information
For more information, we recommend you to visit grants gov website that may be able to help you find the grant money you need. You can also rely on the National Re-Entry Resource Center for additional information, help and guidance.
There are still many other programs available from your state government. We recommend you to visit your Department of Human Services, make an appointment with a social worker and explain your condition. Based on that condition the social worker will help you find the local programs or other government assistance for convicted felons available for you.
Nonprofit Organization Grants for Felon
If you don’t find any government assistance for convicted felon, check the alternative options below:
Rise Up, Get Started Grant Program!
Determination, Inc., a nonprofit in Kansas City, Missouri, assists people who were once in jail to launch and expand their own businesses.
Through the Rise Up, Get Started project, business owners can join a year-long program. They’ll get coaching, mentoring, and support from the community. Plus, they’ll receive help in writing a business plan and managing finances.
At the end of the program, participants will have $300 saved for their business. Determination, Inc. will also give them a $750 grant.
The nonprofit also holds a Back to Business workshop in prisons. This workshop helps inmates create a business plan, so they’re ready to start a new life.
The Georgetown Pivot Program
The Georgetown Pivot Program is a year-long, full-time program aimed at helping people who were once in jail learn the skills they need to succeed in the business world.
Throughout the program, participants attend classes, do an internship, and even get to develop their own business idea. At the end, they pitch their business idea at the Pivot Pitch Competition, where they could win money to start their business. In 2022, the total grant money awarded to participants was $15,000.
To be eligible, participants must be 25 years old or older, have a high school diploma or GED, and have been in jail within the last five years. People who live in Washington, D.C. get first preference.
The Transform Business Grant
The Transform Business Grant is available for business owners who belong to groups that have faced systemic oppression, like people who were previously incarcerated. Along with receiving a $1,000 microgrant, recipients will also get a personalized year-long program to help develop and grow their business.
The LEAP Virtual Entrepreneurial Academy
The LEAP Virtual Entrepreneurial Academy, operated by a nonprofit in Florida, supports women who were previously in jail as they reintegrate into society. This program, held twice a year, teaches participants about business.
During a three-month period, students attend classes twice a week. At the end, they present a business plan to a group of entrepreneurs for a chance to win cash prizes. Graduates can also apply for a $1,000 microloan.
To join, you need to be a woman who was once in jail and have access to a computer. LEAP covers all the costs of the program through sponsor funding.
Amber Grant
The Amber Grant is from the nonprofit organization WomensNet. It isn’t specifically for people who were previously incarcerated. But it’s a good option for women entrepreneurs. WomensNet offers various grants to businesses that are at least 50% owned by women. Including the $10,000 monthly Amber Grant and the $25,000 annual Amber Grant.
WomensNet also offers grants dedicated to startups, nonprofits, and specific business categories. Every month, they give a $10,000 grant to a company in a particular industry. For instance, in January, the grant goes to a skilled trades business. You can apply for all these grants by filling out one easy application on the Amber Grant website.
The Bottom Line
Most of the convicted felons do not get any job in the United States because of their history or past actions after coming out of prison. This is a reason why they are forced to get involved in crimes and other illegal works.
However, the other option is to establish a business themselves that flourishes in the coming years. To support this idea, the government offers various grants and assistance programs that are specifically for felons.
The above post includes government assistance for convicted felons, which you can easily access to get the funding for establishing your business. If you want to avail of the benefits, apply for any one of them that you find ideal for your requirements.
Read Also : How to get Government Grants for Convicted Felons
References:
- (https://www.nerdwallet.com/article/small-business/grants-for-felons)
- Image: huffingtonpost.com
