SBA loans for felons
The SBA does not automatically deny applicants with a criminal record. The agency uses Form 1919 plus a 'character determination' — a structured review, not a background check. The vast majority of justice-involved applicants pass. This page explains how, and lists the SBA-approved lenders with a track record of funding them.
Programs we recommend
- Apply
SBA 7(a) Loan
U.S. Small Business Administration (via approved lenders)
- Type
- Loan
- Amount
- Up to $5,000,000
- Area
- United States
Flagship SBA-guaranteed loan. Criminal history evaluated via Form 1919; only specific offenses trigger automatic denial.
- Apply
SBA Microloan Program
U.S. Small Business Administration (via nonprofit intermediaries)
- Type
- Microloan
- Amount
- Up to $50,000
- Area
- United States
Delivered through SBA-approved nonprofit intermediaries (many of which are CDFIs). Common entry point for founders with thin credit files.
- Apply
SBA Community Advantage (CA SBLC)
SBA + mission-driven CDFI lenders
- Type
- Loan
- Amount
- Up to $350,000
- Area
- United States
SBA-guaranteed loan delivered by mission-driven CDFIs. Built for underserved founders — the natural product for justice-involved applicants.
FAQ
Which offenses cause automatic SBA denial?
Per SBA SOP 50 10 7.1: presently incarcerated, on parole/probation for a financial-fraud offense against the federal government, or convicted of certain violent or sex offenses. Everything else flows through character review.
Do I have to disclose a sealed or expunged record?
No. Form 1919 explicitly excludes sealed, expunged, and juvenile-adjudication records from the disclosure requirement.
What's the difference between 7(a) and Community Advantage?
Both are SBA-guaranteed. 7(a) is the flagship program, originated by banks. Community Advantage is delivered by CDFIs and mission lenders specifically to underserved founders — the natural fit for reentry applicants.
Other capital paths
- Small business grants for felonsA vetted, regularly-updated list of small business grants formerly incarcerated founders can actually apply for in 2026. Eligibility, amount, and direct application links.
- Startup loans for felonsLoan programs that explicitly fund formerly incarcerated entrepreneurs in 2026. Real rates, real lenders, no payday traps.
- Business funding for formerly incarcerated foundersEvery realistic capital source for a reentry-led business in 2026: grants, CDFI loans, revenue-based financing, employer tax credits, and the Felons to Founders Pay-It-Forward stack.