How Can a Felon Get a Small Business Loan?
Many ex-felons will have a difficult time finding a job. For them, the only way towards success is to start their own business. However, without their own money or assets from friends and family to get started, they will face an impossible scenario. While some businesses require only a small investment, others will require a lot of money. People with felonies can find it to be a challenging obstacle to get a business loan.
Sources of Business Loans for Ex-Felons
Partnerships are a good source of funding. It is important to get solid legal advice to ensure that there are no issues later on. It is best to go into a partnership with people you trust and who you know have integrity. This will protect not only you, but your partner or partners as well.
The U.S. Department of Labor, also offers different types of grants to help ex-felons re-integrate into society. To find a grant that can be used to help you establish a small business, visit the website, Grants.Gov .
Micro-lenders are also worth exploring as a source of funding for starting a business for ex-felons. Many of these agencies will lend to people with bad credit. Some micro-lenders to consider include Accion USA , Kiva and Count-Me-In which is specific to women.
The website, Help for Felons also has lots of helpful information on loans and grants for felons wanting to start over their lives. While not specific to business loans for ex-felons, the information is valuable.
The Prison Entrepreneurship Program was developed for Texan ex-prisoners. The program teams prison inmates with business people while offering an MBA-level program in collaboration with Baylor University to help them prepare for the outside world. The program offers top-class training and support to help ex-prisoners harness their intellectual and entrepreneurial skills to improve their lives when they return to society.
One popular source of funding for ex-felons is the Federal Pell Grant Program . One of the best things about this grant is that it does not need to be repaid. While this grant is not a business loan, but rather an education grant, it enables ex-felons to get the education and training they need to succeed if they set up their own business or decide to work for someone else.
The small business section of Chron website offers lots of information on how people with bad credit, such as many ex-felons can get loans to start a small business. Since many prisoners were running successful businesses before going into prison, albeit some were illegal, they have the knowledge and skill to operate legal small enterprises. With the right support, many ex-felons are able to start and operate successful businesses and contribute to society.