top of page
Felon Friend Jobs Now Logo
Business Meeting Discussion

Business Grants for Justice-Impacted Entrepreneurs: The Complete 2026 Guide to Second-Chance Funding

This guide is published by Felon Friendly Jobs Now (FelonFriendlyJobsNow.com), a resource platform serving the 70+ million Americans navigating life with a criminal record.

​

We've researched funding sources, talked to entrepreneurs who've secured grants, and compiled what actually works. This guide reflects that experience.

​

For returning citizens, the biggest barrier to starting a business isn't a lack of ideas—it's a lack of capital. Traditional bank loans can be difficult to secure with a record.

​

But here's what most people don't know: a growing ecosystem of "Second Chance" grants exists specifically to bridge this gap. And unlike loans, grants do not have to be paid back. They're investments in your potential.

🚀 GRANT QUICK START

If you want grant funding, here's the fast track:

​

1. Register your business (LLC or Sole Proprietorship)

2. Get an EIN (free at IRS.gov — 15 minutes)

3. Call your local SBDC (free help — see state directory below)

4. Apply to 3–5 grants at once (more applications = better odds)

That's it. Everything else on this page helps you do those four things better.

Understanding Grants vs. Loans vs. Other Funding

Before diving into specific opportunities, understand what you're looking for:

​

  • Grants: Free money. No repayment required. Competitive—you apply and are selected based on criteria. Often require a business plan or pitch.

  • Microloans: Small loans (typically under $50,000) with flexible terms. Must be repaid, but often more accessible than bank loans. Kiva offers 0% interest.

  • Pitch competitions: Present your business idea to judges. Winners receive cash prizes (essentially grants). Defy Ventures runs these for justice-impacted entrepreneurs.

  • Crowdfunding: Raise money from many small contributors (GoFundMe, Kickstarter). You keep what you raise, but success depends on your network and story.

​

What we see working: Most successful justice-impacted entrepreneurs combine multiple sources—a small grant to start, followed by revenue reinvestment, then a microloan to scale.

⚠️ Important: Grant programs change frequently—funding runs out, application windows close, organizations restructure. Always verify current availability directly with the source before applying. This guide provides starting points, not guarantees.

National Grants for Second-Chance Founders

These programs operate across the United States and specifically prioritize or include justice-impacted applicants.

The TRANSFORM Business Grant

  • Amount: $1,000 micro-grant + one year of customized mentorship

  • Best for: Systemically oppressed groups, including formerly incarcerated individuals

  • Note: Applications typically open annually. The mentorship component is often more valuable than the cash.

Bizee Fresh Start Business Grant

  • Amount: $2,500 for startup costs

  • Requirements: Must submit a business plan

  • Best for: Aspiring business owners ready to formalize their idea

NAASE Growth Grants

  • Amount: Up to $4,000

  • Source: National Association for the Self-Employed (NAASE)

  • Note: Not exclusively for those with records, but NAASE is a "Fair Chance" partner that prioritizes micro-businesses

Kiva Microloans (0% Interest)

  • Amount: Up to $15,000

  • Terms: 0% interest, crowdfunded based on your story—not credit score

  • Process: Create a profile, rally initial supporters (friends/family), then Kiva's broader community funds the rest

  • Note: Technically a loan (requires repayment), but the 0% interest and story-based approval make it grant-like

Defy Ventures

  • What it is: Entrepreneurship training program with pitch competitions

  • Funding: Competition winners receive seed capital

  • Bonus: Executive mentorship, business training, and networking

  • Availability: Multiple states, both in-prison and post-release programs

What we see working: Kiva and Defy Ventures are the most accessible paths for justice-impacted founders. Kiva because approval is story-based, Defy because it's specifically designed for this community.

Identity-Based Grants: Additional Qualifications

If you fall into additional categories—woman-owned, minority-owned, veteran—more grants become available. These can be combined with your justice-impacted status.

Grants Table.png

Strategy: Apply to multiple grants simultaneously. If you're a Black woman returning citizen, you qualify for second-chance grants AND woman-focused grants AND minority-business grants. Stack your applications.

Regional and State-Specific Opportunities

State and local grants are often less competitive than national programs. Your SBDC counselor (more on this below) will know about opportunities specific to your area.

Examples of Regional Programs

  • Georgia — Justice Fund of Georgia: $10,000 to $25,000 for justice-impacted-led organizations and small businesses driving change in the state.

  • New York — Queens Tech + Innovation Challenge: Five $20,000 grants for early-stage entrepreneurs in the Queens area.

  • Washington D.C. — Georgetown Pivot Program: Comprehensive program for D.C. residents including stipend and potential startup seed funding.

  • Midwest — Rise Up, Get Started Grant: Run by Determination, Inc. in Kansas City. Coaching plus cash prizes for business plans.

​

Pro tip: Search "[Your City] small business grant" and "[Your State] entrepreneur grant." Many cities have Mayor's Small Business Funds or local foundation grants that aren't widely publicized.

📌 Find Resources in Your State

Our state-by-state guides cover employment, licensing, and local programs specific to where you live.

→ [Link: Browse State Employment Guides]

How to Apply for Grants Successfully

Grants are competitive. Having a good idea isn't enough—you need to present it professionally. Here's what separates winners from the pile of rejections.

The "Grant-Ready" Checklist

Before you apply for any grant, have these ready:

  • Legally registered entity: Most grants require you to be an LLC or Sole Proprietor. Can't apply as "just an idea."

  • EIN (Employer Identification Number): Free from IRS.gov. Takes 15 minutes.

  • A clear business plan: Even a 2-page plan explaining what you do, who pays you, and how you make money.

  • Impact narrative: How does your business help your community? Grants favor founders who plan to hire other second-chance workers.

  • Professional online presence: Even a simple social media page or free website (Wix, Google Sites) shows you're serious.

Your "One-Sentence Pitch"

Before applying anywhere, be able to finish this sentence:

​

"My business helps [Target Customer] by providing [Service/Product]."

​

Example: "My business helps local property managers by providing reliable, high-quality junk removal and site cleanup."

The Impact Narrative: What Grant Committees Want

​

Grants aren't just about your business—they're about what your business creates beyond profit. Address these:

​

  • Jobs created: Will you hire employees? How many? Will you prioritize second-chance hiring?

  • Community impact: Does your business solve a local problem? Serve an underserved community?

  • Your story: Your background isn't a liability in grant applications—it's an asset. You represent the exact outcome funders want to support.

  • Sustainability: How will the business continue after the grant money is spent?

Avoiding Grant Scams

Where there's money, there are scammers. Justice-impacted individuals are often targeted because scammers assume desperation. Protect yourself.

Red Flags — Never Do This

  • Pay to receive a grant: Real grants NEVER require upfront fees, "processing charges," or "taxes" to receive your money.

  • Give SSN via text/WhatsApp/Telegram: Legitimate organizations don't request sensitive information through messaging apps.

  • Trust "guaranteed approval": All real grants are competitive. Anyone promising guaranteed money is lying.

  • Click links from unsolicited messages: If you didn't apply, they didn't select you.

Safe Sources

  • Government sites (.gov)

  • Established nonprofits (.org with verifiable history)

  • Well-known brands (Hello Alice, Kiva, FedEx Small Business)

  • Your local SBDC (they know legitimate local programs)

  • Direct referrals from trusted organizations

Free Help: SBDCs and How to Use Them

Every state has Small Business Development Centers (SBDCs) offering free business counseling. This is the most underutilized resource for justice-impacted entrepreneurs.

What SBDCs Provide (Free)

  • One-on-one business counseling

  • Help writing your business plan

  • Guidance on registration and licensing

  • Knowledge of local grants you won't find online

  • Connections to local lenders and programs

"Inside Intel" — What You Need to Know

Many people with records are hesitant to walk into a government-funded office. Here's the reality:

  • Confidentiality: SBDC counselors are like doctors for your business. They aren't there to report you to parole. They exist to help you build a plan.

  • Lead with your goal, not your record: Say "I'm an aspiring entrepreneur with a non-traditional background, and I need help with my business plan." You don't have to disclose details upfront.

  • Local grants are their specialty: The best grants are often city-level (Mayor's Small Business Fund, community foundation grants). SBDC counselors know about funds that aren't publicized online.

What we see working: Entrepreneurs who build relationships with SBDC counselors find opportunities that never show up in Google searches. The free help is real.

Script: Calling the SBDC for the First Time

Goal: Schedule a free one-on-one appointment with a business counselor.

Part 1: The Greeting

"Hi, my name is [Your Name]. I'm a new entrepreneur in the [Your City] area, and I was referred to the SBDC for help with starting a small business. I'd like to schedule an initial consultation with a business advisor. Is there someone available to help with that?"

Part 2: Describing Your Business

If they ask what kind of business:

"I am launching a [Service-based business, e.g., Landscaping / Commercial Cleaning / Mobile Detailing] company. I have my basic ideas ready, but I need professional guidance on legal registration and building a formal business plan."

Part 3: Addressing Your Background (If Needed)

You don't need to lead with your record. But if relevant to licensing questions:

"I'm also looking for an advisor who has experience working with entrepreneurs from non-traditional backgrounds, specifically those re-entering the workforce. I want to make sure I'm navigating state licensing requirements correctly for my situation. Do you have a counselor who specializes in 'Fair Chance' or second-chance entrepreneurship?"

Tips for Success

  1. Don't lead with "Where's the free money?": Counselors help people who want to build sustainable businesses, not just collect grants.

  2. Have your one-sentence pitch ready: Know what your business does before you call.

  3. Be ready for paperwork: Most SBDCs require a digital intake form before assigning an advisor.

📌 Need Help Starting Your Business?

Our complete entrepreneurship guide covers everything from mindset to formation—licensing, banking, business ideas, and step-by-step instructions.

→ [Link: Read the Complete Entrepreneurship Guide]

State-by-State Resource Directory

Every state has a business registration portal and an SBDC network. Find yours below.

​

💡 Clean Slate Note: Many states (PA, MI, CT, and others) now have automatic record-sealing laws. If you live in a Clean Slate state, your record may be automatically sealed after a period of time, making professional licensing easier. Check your state's specific rules.

States A-M
Business Grants States A-M.png
Business Grants States A-M 2.png
States N-W + D.C.
Business Grants States N - W.png
Business Grants States N - W 2.png

What to Expect in Your First SBDC Meeting

When you meet with your advisor (in person or Zoom), they'll likely walk you through a Business Model Canvas—a one-page diagram that tests whether your idea can actually make money.

Key Questions They'll Help You Answer

  • Value Proposition: Why should someone hire YOU instead of a big corporation? (Your personal dedication and lower overhead are advantages.)

  • Customer Segments: Who exactly is going to pay you? Be specific.

  • Cost Structure: How much do you need to spend before you make your first dollar?

  • Revenue Streams: How does money come in? One-time sales? Recurring contracts?

  • Key Resources: What do you need to operate? Equipment? Vehicle? Skills?

​

[WEB TEAM: Consider adding Business Model Canvas image here for visual learners]

!

The Path Forward

Grants won't fall into your lap. They require preparation, persistence, and professional presentation. But they exist—and they're specifically designed to help people like you.

​

Start by getting grant-ready: register your business, get your EIN, write a basic plan. Then connect with your local SBDC—the free help is real, and counselors know about opportunities you won't find online.

​

Apply to multiple grants simultaneously. Many successful entrepreneurs hear "no" several times before hearing "yes." Each application makes the next one stronger.

​

The funding exists. The path exists. Now it's about doing the work.

Continue Your Journey

bottom of page