Free grants for convicted felons to start a business can help you cover your start-up costs if you’re planning a new venture. Business grants for felons are sometimes available from the government, nonprofit organizations, and corporations.
Some nonprofits also offer training opportunities for previously incarcerated people through second-chance entrepreneurship programs.
Before applying for a small business grant for felons, make sure you you meet all of the eligibility criteria, such as the industry the grant is focused on and length of time in business.
Free Grants For Convicted Felons To Start A Business 2025
Getting a small business grant is a smart way for felons to fund a new business. While the grant application process is often competitive, business grants for felons provide startup capital without the burden of debt.
Felons can usually qualify for the same small business grants open to the general public. That’s great news because you’ll have a much larger pool of grants to work with.
On the other hand, if you focus on business grants for felons, you’ll have fewer applicants to compete with which could improve your odds of being awarded the funding you need.
When you find grants you want to apply for, it’s essential to check the eligibility criteria and submit a detailed application, that may include personal and business information, a business plan, a presentation, or even a short video.
NASE Growth Grants
Grant award: Up to $4,000
Who can apply: NASE members only
How to apply: Applications open each quarter on the NASE website
This grant is open to members of the National Association for the Self-Employed. There’s no barrier to felons joining NASE and membership costs $11.95 per month.
To be considered for this grant, you’ll need to be a member for 90 days, submit a business plan, and explain why you need the grant and how you plan to spend it.
Transform Business Grant
Grant award: $1,000 microgrant
Who can apply: Members of marginalized groups including felons
How to apply: Applications open twice a year on Transform’s website
Transform business grants support entrepreneurs from marginalized groups including felons. Grants are awarded to anticapitalist, antiracist businesses committed to social justice.
Recipients of the grant also participate in a 12-month mentorship program that provides free coaching from experts.
WomensNet Amber Grant
Grant Award: $10,000 to $25,0000
Who can apply: Businesses at least 50% owned by women
How to apply: Applications run each month with a $15 application fee
Amber Grants are for women who want to start a business. Applying is easy, there’s no need to prepare a business plan or complete a lengthy application. Just fill out a simple form on WomensNet with details about yourself and your business ideas and goals.
WomensNet awards three $10,000 grants each month and one $25,000 grant at the end of each year.
Learn more: https://ambergrantsforwomen.com/get-an-amber-grant/
Bizee Fresh Start Business Grant
Grant award: $2,500
Who can apply: U.S. residents aged 21 or over
How to apply: Apply online and submit a short video
Felons receiving the Bizee Fresh Start Business Grant get a cash award of $2,500 and free access to Bizee’s business formation service ($385 value).
To apply, complete the online application, submit a business plan, and create a two-minute video explaining the impact entrepreneurship will have on your life.
LEAP Virtual Entrepreneurship Academy
Grant award: $1,000 microloan and cash prizes
Who can apply: Formerly incarcerated women
How to apply: After graduating from the LEAP Virtual Academy
The Florida-based Ladies Empowerment and Action Program (LEAP) runs a free 12-week course teaching formerly incarcerated women the skills they need to start a micro business.
After graduating from the course, former felons have the chance to present their business idea to a panel that awards cash prizes. Graduates can also apply for a $1,000 microloan and receive ongoing support from a business mentor.
Classes run twice a week in the evenings for 3 hours. Access to a computer, webcam, and internet service is required.
Learn more about this business grant for felons: https://leapforladies.org/employment-and-entrepreneurship
Georgetown Pivot Program
Grant award: Weekly stipend throughout a one-year college program
Who can apply: Individuals over 25, incarcerated in the last 5 years, with a high school diploma
How to apply: Complete the application on the Pivot Program website
The Pivot Program is part of Georgetown University’s Prisons & Justice Initiative. The program accepts up to 20 students each year.
If you complete the program you’ll receive a certificate in business and entrepreneurship from Georgetown University. You’ll also be eligible for mentorship and grant opportunities.
The program combines coursework with a 3-month internship. Classes are held online and in person at the Georgetown Prisons and Justice Initiative in Washington D.C.
Learn more about this business grant for felons: https://pivot.georgetown.edu/pivot-program-application/
Awesome Foundation Grants
Grant award: $1,000
Who can apply: Anyone
How to apply: Complete the short application on Awesome Foundation’s website
The Awesome Foundation awards grants each month helping individuals and groups fund various projects. This grant is perfect for entrepreneurs looking for start-up funding and you can make a new application each month.
Applying is easy, just complete the simple form on the website giving details about yourself, your business idea, and how you’ll use the money.
Hustler’s MicroGrant
Grant award: $1,000
Who can apply: Small business owners
How to apply: Complete the simple application at the HerSuiteSpot website
The Hustler’s MicroGrant is a chance for small business owners to win a $1,000 boost. Funded by HerSuiteSpot, this grant helps entrepreneurs who need a little financial support to realize their dreams.
There’s a $15 application fee and a new round of applications opens every month.
The Small Business Digital Readiness Program Grant
Grant award: $10,000
Who can apply: small business owners
How to apply: Eligible to apply after completing 2 courses in the program
Created by National ACE and Verizon, the program is designed to equip small business owners with essential digital skills.
The free program is delivered through an online curriculum complete with expert coaching, peer networking, and a variety of tools to help your business succeed.
Those who sign up and complete two courses are eligible to apply for a $10,000 grant with multiple grants awarded throughout the year.
Learn more: https://www.aapistrong.com/vsbdr
Government-Funded Business Grants For Felons
You may qualify for a small business grant from your state government. To find government grants in your state search the GrantWatch database which holds details on more than 1200 small business grants.
Grants tend to be for established businesses rather than grants for business start-up costs. Even so, browsing the grant database will give you an idea of the funding you could receive once your business is up and running.
Learn more: https://www.grantwatch.com/grants-for-small-business
Small Business Loans For Felons
Are there any loans for felons to start a business? Yes, it’s possible to get a loan despite your felony, although it can be hard to meet the requirements for conventional business loans without a good credit score and a business with a solid track record.
One of the best ways to find loans for felons to start a business is through the Small Business Administration (SBA). These loans offer up to $50,000 with competitive interest rates (typically 8%-13%).
SBA lenders may run a background check but will disregard irrelevant criminal history when evaluating applicants, making these small business loans for felons easier to qualify for.
To apply for a loan, you’ll need to gather your personal and business information and financial statements. In some cases, you may need collateral.
Consider Crowdfunding
Raising money through Crowdfunding could be a viable alternative to applying for small business loans for felons and small business grants for felons.
Crowdfunding platforms like Kickstarter, GoFundMe, and Indiegogo help you raise funds from the general public. You can offer tiered rewards in exchange for contributions, such as products, services, or experiences.
You’ll need a strong promotional strategy to attract attention to your campaign and secure backers.
Crowdfunding sites also charge transaction fees and take a percentage of the funds raised, which will affect the final amount you receive.