Startup loans for felons
A startup loan is the fastest path to capital for a felon-founded business — grants are rare and slow. The lenders below are CDFI-backed, mission-aligned, and have actually funded justice-involved applicants. We do not list payday-style 'bad credit business loans.'
Programs we recommend
- Apply
Kiva U.S. 0% Microloan
Kiva
- Type
- Microloan
- Amount
- Up to $15,000 at 0% APR
- Area
- United States
Crowdfunded, 0%-interest microloan. No minimum credit score. Requires a social-underwriting period where the founder recruits ~20 initial lenders.
- Apply
Accion Opportunity Fund Small Business Loan
Accion Opportunity Fund (CDFI)
- Type
- Loan
- Amount
- $5,000–$250,000
- Area
- United States
Mission-driven CDFI lender. Explicitly funds founders banks reject, including formerly incarcerated applicants. Fixed rates, no prepayment penalty.
- Apply
LiftFund Microloan + SBA Community Advantage
LiftFund (CDFI, SBA-approved)
- Type
- Loan
- Amount
- $500–$500,000
- Area
- Texas, Louisiana, Arkansas, Mississippi, Alabama, Tennessee, Florida, Georgia, Kentucky, Missouri, New Mexico
Texas / Southern-US CDFI. Originates SBA Community Advantage loans for founders banks won't touch — Form 1919 criminal-history questions handled in-house.
- Apply
Inclusive Action for the City — Reentry Loan Fund
Inclusive Action (CDFI)
- Type
- Loan
- Amount
- $1,000–$25,000
- Area
- California
Los-Angeles-based CDFI with a dedicated reentry product. Low fixed rates, in-language underwriting, credit-building reporting.
FAQ
What's the minimum credit score for a CDFI startup loan?
Most reentry-friendly CDFIs underwrite below 600 and several have no minimum at all — they weight cash flow, character references, and a business plan over FICO.
How fast can I receive funds?
Microloans (Kiva, Accion, LiftFund) typically close in 2–6 weeks. SBA Community Advantage and 7(a) loans take 30–90 days. Plan accordingly.
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.
- SBA loans for felonsHow the SBA evaluates criminal history on the 1919, which offenses trigger automatic denial, and the SBA-approved lenders most likely to fund formerly incarcerated founders.
- 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.