Texas
Small business grants & funding for felons in Texas
Texas has the largest in-prison entrepreneurship ecosystem in the country and one of the deepest CDFI networks for post-release founders. The starting points below are all open to applicants with felony records and have funded businesses in the state.
Capital & program directory
- Visit
Prison Entrepreneurship Program (PEP)
PEP
- Type
- Program
- Amount
- Free training + alumni microloans
Six-month in-prison MBA-style program with a 12-month post-release accelerator and alumni capital network.
- Visit
LiftFund Small Business Loans
LiftFund (CDFI)
- Type
- Loan
- Amount
- $500 – $1,000,000
SBA Microloan and Community Advantage lender headquartered in San Antonio; felony-friendly underwriting on a case-by-case basis.
- Visit
BCL of Texas Microloan Program
Business and Community Lenders of Texas
- Type
- Microloan
- Amount
- Up to $50,000
CDFI serving Austin, Dallas, and Houston metros with character-based lending for early-stage founders.
- Visit
Texas Workforce Commission Reentry Services
Texas Workforce Commission
- Type
- Reentry services
- Amount
- Wage subsidies + WOTC up to $9,600
Wage subsidies, federal bonding, and Work Opportunity Tax Credit certification for employers hiring or self-employed founders.
FAQ — Texas
Are there state-funded grants for felons in Texas?
Texas does not run a state grant program reserved for justice-impacted founders, but most Texas CDFIs (LiftFund, BCL of Texas, PeopleFund) underwrite character-first and routinely approve applicants with records. Combine a microloan with PEP's alumni network for the strongest start.
Can I get an SBA loan in Texas with a felony?
Yes. SBA's 2023 policy update removed most categorical bars on prior felonies. Approval comes down to the underwriting lender; Texas SBA-preferred lenders that have funded justice-impacted borrowers include LiftFund and PeopleFund.