Starting a business is one of the most powerful paths to a fresh start — and having a record doesn't disqualify you from most business funding. Grants aimed specifically at felons are limited, but reentry programs, community lenders and revenue-based funding give you real options.
Where to look
- Reentry nonprofits & second-chance programs — grants, training and mentorship for justice-impacted entrepreneurs.
- CDFIs & microlenders — mission-driven lenders that fund people banks overlook, often with grants attached.
- General small-business grants — most grant programs don't ask about a record; see our grants guide.
- Local workforce & SBA resources — SBDCs and workforce boards point to reentry-friendly programs.
Good news on funding: most business lenders don't run a criminal background check — they approve on your business's revenue and bank deposits. Your record usually isn't a factor.
Funding that approves on revenue, not record
Once you have some sales, revenue-based options open up fast:
- Bank-statement loans — approval on deposits.
- Revenue-based advances — repay as a share of sales.
- Equipment financing — the equipment is the collateral.
Also read our guide to business loans for felons and no-credit-check funding.
Frequently asked questions
Are there grants for felons?
Few are felon-specific, but reentry nonprofits, CDFIs and general grants are open to you.
Can I get funding with a record?
Yes — most lenders don't run background checks and approve on revenue.