Business Loans

Small Business Loans For Felons

US Small Business Administration (SBA Loans)

The US Small Business Administration (SBA) offers many options for felons that are seeking small business loans. Below we will cover the four types of loan programs and loan types that they offer. The four programs consist of:

  • General Small Business Loans
  • Microloans
  • Disaster Loans
  • Real Estate & Equipment Loans

NOTE: SBA loans are NOT open to all felons but being a felon will not automatically disqualify you. Crimes of  “moral turpitude” will most likely cause you an issue. You can read more information about SBA loans and being a felon here.

SBA General Small Business Loans for Felons

General small business loans from the SBA can be used for most business types. The SBA does not list what small business types are eligible but they do list what business are prohibited.  On their site you can find all of the information that you need. This includes:

  • Loan Program Eligibility (Felon friendly)
  • Loan Amounts, fees and interest rates
  • Application checklist
  • Processing time
  • Standards of use

The downfall of these types of small business loans are that you must have “reasonably invested equity.”

SBA Microloans for Felons

The SBA Microloan Program is a great loan program for felons for several reasons. Microloans are easier to get generally speaking and most felons are not looking for high dollar loans greater than $50,000. The average SBA microloan is for $13,000. If you have poor credit I first suggest that you repair it and I will tell you how to do that at the bottom of the page. I would also apply for a small amount, $5,000 dollars or less.

SBA microloans can ONLY be used for the following:

  • Capital
  • Supplies
  • Inventory
  • Fixtures
  • Equipment and/or Machinery

You can find a list of the Participating Microloan Intermediary Lenders here or you can contact the SBA directly.

SBA Real Estate & Equipment Loans for Felons

This type of loan is much harder to get as a felon and can only be used when buying real estate or major equipment. We do not suggest spending the time it takes to apply for this type of SBA small business loan.


Other Options For Felons Seeking Small Business Loans

 Being a felon may limit your options when it comes to getting a conventional small business loan but that does not mean you can’t get the money. Sometimes we need to think outside the box and look at other options to get a loan or money for our small business.


Kickstarter can be a great place to raise money for your small business if you are creating some type of product. People pledge money to you in order to get a product or reward down the road after you are up and running.

Go Fund Me

Go Fund Me is another great crowd funding platform. Simply post your goal of starting your own business and use social media to spread the word.