SBA Loan Options for Felons

by Steve Sanchez⁽⁵⁾
http://www.surveyinferno.com

A significant number of felons have expressed their desire to start their own business. But with their record, are they eligible for a small business loan? Unfortunately, the unanimous answer is almost always resounding "no". In most states, individuals with criminal records are prevented from obtaining the necessary permits to start their own business. However, in states like Kentucky, a felon can start and operate his own business provided they do not operate on certain business categories such as selling alcohol. Laws such as these help felons to reintegrate back into society and start contributing to the community.

Also, when applying for an SBA loan, an applicant should meet ethical requirements, one of which is whether the applicant has been convicted or not. If an applicant has a criminal record, then he is not qualified for an SBA loan.

"A participant or any associate of the Participant is incarcerated, on parole, or on probation or is a convicted felon or has an adverse final civil judgment that would cause the public to question the Lender's business integrity."

It might sound unfair for felons who really want to go on clean living and start their own business. But the law is law. So what can a felon do if he really wants to start a legitimate enterprise? According to Jim Hammersley, director of the SBA's loan programs division back in 2006, felons may avail of an SBA loan program if the crime committed was "minor in nature and remote in time".

Currently, there are talks about giving felons and person with criminal records the opportunity to apply for SBA loans provided they satisfy requirements that are specifically set for such individuals.

But with no SBA loans, what are other funding options a felon can avail of so that he can start his own business? Unless they have an immediate source of funding, a loan from the government is highly improbable. That said, a convicted felon can generate income by finding a job instead.

There are several big and small companies that companies that offer employment opportunities to felons. That said, most job entail physically demanding descriptions, such as trucking, carpentry, masonry, plumbing, and gardening. Also, the Department of Justice also has the Serious and Violent Offender Reentry Initiative, a program that equips serious offenders with skills training and placement services to help them productive members of the society once they are released from prison.

Steve Sanchez is an author specializing in SBA Loans. To learn more about Small Business Loans visit www.lendio.com.

Article submitted Friday, July 15, 2011 & read 54 times.

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