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If you have a criminal record and want to go into business for yourself, read this guide to the best business grant opportunities available for felons.
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Having a criminal record has its own set of challenges, but past mistakes don’t have to haunt you forever. More companies are helping formerly incarcerated individuals re-enter the workforce, while many former felons are choosing to forge their own paths by starting their own businesses.
According to a RAND study, more than 3.8% of small business owners in the U.S. have a criminal record, while about 1.5% have a felony charge. While a criminal record doesn’t stop you from owning a business, you may encounter roadblocks along the way, specifically in terms of business funding.
One way to get the money you need is with a grant — money you can use to start your business that doesn’t have to be repaid. Grants are extremely competitive, but it is possible to get one to kickstart your business. Here’s how to get started.
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Felons are eligible to apply for most small business grants, provided they meet all requirements set by the grant program. While grants may target specific demographics or industries, the applicant’s criminal record typically isn’t a consideration for most programs.
Grants.gov is a great resource for finding federal grants. Although you won’t specifically find grants for felons or ex-felons, there are thousands of federal grant opportunities contained within this government database.
In addition to grants, the website has an abundance of resources to help you better understand everything from policies and eligibility to grant terminology. A mobile app is also available.
Pell Grants are educational grants that are used to pay for tuition and other school-related costs and fees. While this isn’t a small business grant, a Pell Grant can be used to attend a higher institution to learn skills and earn a degree that can be useful when launching a business.
Pell Grants, unlike student loans, do not have to be repaid and are based on financial need.
While the Small Business Association (SBA) 8(a) program isn’t a grant program and isn’t for brand-new businesses, this is a resource to keep on your radar as your business grows.
The SBA 8(a) program supports socially and economically disadvantaged small businesses that have been in operation for at least two years. This program provides training, technical assistance, business development assistance, mentorship opportunities, and more.
Perhaps the biggest draw of the program is that millions of dollars in government contracts are set aside for program participants. In order to participate, your business must be certified by the SBA.
The U.S. Department of Commerce’s Minority Business Development Agency is a federal agency that focuses on the growth of minority-owned businesses.
The MBDA has numerous Business Centers located throughout the nation that help minority business owners find funding opportunities, connect with strategic partners, and secure business contracts.
You can connect with your local MDBA Business Center to learn more about the resources available to help you start your business.
The State Trade Expansion Program (STEP) is a program funded by the SBA. Under this program, the SBA provides funding to state and local governments to assist small businesses in expanding into international markets.
With this funding, small businesses can learn how to export, create international marketing campaigns, participate in training and workshops, and more. Y
ou can learn more about available opportunities and eligibility by reaching out to your local entity that has received STEP funding.
Incfile’s Fresh Start Business Grant program is designed for any U.S. resident aged 21 or older that wants to start their own business.
The winner of this contest receives $2,500 to put toward startup costs, as well as a free Incfile plan that includes incorporation services, Registered Agent services, and tax consultation.
You can apply by submitting a short online application, a video about your business idea, and a business plan.
If you’ve already launched your business but need help to keep moving forward, consider applying with the Fast Break for Small Business program. LegalZoom, the NBA, WNBA, and NBA G League have teamed up for this small business grant program, which is administered by Accion Opportunity Fund.
Under this multi-year program, $10,000 grants and LegalZoom products will be awarded to eligible small business owners.
Eligible small businesses must be in operation for at least three months to qualify.
The National Association for the Self-Employed awards $4,000 Growth Grants every quarter. If you have a business plan and an identifiable business need, you could be eligible for this grant.
To qualify, you must also be a member of the NASE. Membership starts at $11.95/month, and there are discounted membership rates available for students, veterans, and members that purchase an annual membership.
If your for-profit small business has been in operation for at least six months, you can apply to the FedEx Small Business Grant Contest. You could potentially win up to $50,000 as well as FedEx Office services to grow your small business.
You can sign up to be notified about important contest dates through the FedEx Small Business Grant Contest website.
Hello Alice partners with numerous companies including Amazon, Alibaba, DoorDash, Mastercard, and FedEx to offer small business grants to new and established businesses.
You can check out current grant offerings through the Hello Alice website, and you can even sign up to receive notifications of new grant opportunities.
If you’ve started your business and have been in operation for at least one year, you may be eligible to apply for the Chamber of Commerce CO-100 Awards. Formerly known as the Dream Big Awards, this contest has a top prize of $25,000 for the Small Business of the Year winner.
There are several award categories, including emerging businesses, minority-owned businesses, and women-owned businesses. You can sign up to apply for the grant or to receive notifications for future grant periods.
WomensNet’s Amber Grant Foundation gives out monthly grants to eligible women-owned businesses. Grant opportunities include $10,000 monthly grants, $25,000 year-end grants, mini-grants up to $2,000, and more.
The application process is short and easy, and winners are announced on the 23rd of the following month.
In addition to grants, there are other small business funding options available. While these funds will typically have to be repaid over time, these options open up financial opportunities to launch a small business, even for applicants with a criminal background.
It is possible for a felon or former felon to get a small business loan assuming they meet all lending requirements. This may include income or revenue requirements, personal credit score and history, collateral, and debt-to-income ratio.
While getting a startup loan from a bank or traditional lender may be difficult, if not impossible, there are some alternative funding options to consider.
Small business grants aren’t the only resources available for felons looking to start a business. These additional resources include everything from educational opportunities to information about housing, government programs, and felon-friendly job opportunities.
The Last Mile is a program for individuals that are currently incarcerated. This program is designed to train inmates on Web Development Fundamentals and MERN Development. Paid apprenticeships are also available to further enhance these skills. There are currently 21 in-prison programs across six states.
Inmates to Entrepreneurs offers online programs targeted at felons that want to start or grow a business. Free virtual and in-person resources include the self-paced online course Starter U and an eight-week entrepreneurship course. Participants will learn about topics including marketing, business finance, sales, and more.
Defy Ventures offers a variety of programs for felons, including entrepreneurship training, Entrepreneur Bootcamp, Business Accelerator, and alumni programs.
These programs are designed to provide felons with the confidence, skills, and connections needed to increase their chances for success after release. Defy Ventures has chapters located across six states.
Project ReMADE is a Stanford Law School program that provides former inmates with a 12-week entrepreneurship course taught by students at Stanford Law School and Stanford Graduate School of Business. These future entrepreneurs attend bi-weekly classes that cover topics such as public speaking, accounting, and marketing.
Participants work with a mentor team throughout the course to develop a business plan. At the end of the course, participants attend a completion ceremony and present their business plans to a panel of local executives.
Help For Felons provides abundant resources for felons, inmates, and ex-offenders. In addition to highlighting grant opportunities, this organization also provides information on felon-friendly jobs, government assistance, housing, insurance, and more.
SBA Small Business Development Centers (SBDCs) are a great free resource for new business owners. At your local SBDC, you can receive business training, technical assistance, and advice to help launch a startup or to expand an existing business.
SBDCs can help you tackle business issues from acquiring capital to managing finances and increasing productivity. You can search for your local center directly through the SBA website.
The SBA’s SCORE program offers additional resources to new business owners, regardless of criminal history. SCORE connects business owners with volunteer mentors who address topics including business planning and financing through email, phone, or video chat.
SCORE also offers up other small business resources at no cost, including webinars, online workshops, training, and courses. You can find a SCORE mentor near you by searching by zip code on the SBA website.
Funding a small business is challenging for anyone, even without a felony on their record. Fortunately, there are many resources to help you get started. From small business grants that give you free money to launch or expand your business to mentorships and webinars, take advantage of all of the free resources available to you to increase your odds of starting and operating a successful business.
Looking for more grant resources? Look no further than Merchant Maverick!
Learn more about how to find grants for your business, or check out our list of grants for minority business owners to find the funding you need to get your business off the ground. Good luck!
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