Felons to Founders
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Small business grants for felons

Most 'small business grants for felons' lists online are stale, padded with programs that exclude justice-involved applicants, or behind paywalls. This page is the working list we hand to founders inside the Felons to Founders class — every program below either explicitly welcomes formerly incarcerated applicants, or has a track record of funding them.

Programs we recommend

  • Inmates to Entrepreneurs Microgrant

    Inmates to Entrepreneurs (501(c)(3))

    Apply
    Type
    Grant
    Amount
    Up to $2,500
    Area
    United States

    Microgrants to formerly incarcerated founders who complete the I2E entrepreneurship course. No application fee, no credit check.

  • Defy Ventures EIT Seed Capital

    Defy Ventures

    Apply
    Type
    Grant
    Amount
    $500–$10,000 (pitch-competition awards)
    Area
    United States

    Awarded through Defy's CEO-of-Your-New-Life program. Open to graduates of Defy's incarcerated-and-released entrepreneurship cohorts.

  • Hello Alice Small Business Growth Grants

    Hello Alice + Mastercard / Wells Fargo partners

    Apply
    Type
    Grant
    Amount
    $5,000–$25,000
    Area
    United States

    Open to U.S. small businesses; no criminal-history bar. Multiple themed rounds per year (Black-owned, women-owned, veteran, etc.).

  • USDA Rural Microentrepreneur Assistance Program (RMAP)

    U.S. Department of Agriculture

    Apply
    Type
    Grant
    Amount
    Up to $50,000 (via intermediary MDOs)
    Area
    Rural United States

    Federal pass-through to local Microenterprise Development Organizations that fund rural founders. RMAP grants combine with USDA microloans up to $50K.

  • Texas Justice Initiative — PEP Founder Grants

    Prison Entrepreneurship Program (Texas)

    Apply
    Type
    Grant
    Amount
    $1,000–$5,000
    Area
    Texas

    Seed funding for PEP graduates launching a Texas-based business. Combines with PEP's reentry support stack.

FAQ

Can someone with a felony record actually get a small business grant?

Yes. Federal small business grants generally do not bar applicants based on criminal history. State and CDFI-backed programs increasingly fund reentry-led businesses directly. The constraint is usually documentation and a fundable business plan, not the record itself.

Do federal small business grants exist for individual entrepreneurs?

Rarely. Federal 'grants' for individuals to start a business are largely a myth. Real federal money flows through SBIR/STTR (R&D-stage), USDA rural programs, and pass-throughs to state CDFIs and SBDCs. The programs below reflect that reality.

Does a felony disqualify me from SBA-backed loans?

No, with narrow exceptions. SBA 7(a) and microloan programs now use a streamlined Form 1919; only specific offenses (financial fraud against the government, certain violent or sex offenses) trigger automatic denial. Most applicants pass.

Other capital paths