Business Now Edition
The United States Government will remove restrictions on Small Business Administration (SBA) loans that currently prevent many returning citizens (including those on parole) from qualifying for financing with SBA assistance to start or grow a business.
In a press release, SBA Administrator Isabel Casillas Guzmán said “for too long, small business ownership has been out of reach for returning citizens,” therefore, “the SBA is taking a big step” We move forward to foster equity and remove unnecessary. barriers that prevent countless people from starting and running a business.”
Guzmán noted that “economic opportunities can help reduce repetition, trauma, and systematic discrimination that is holding back entire generations and our national economy. Under the Biden-Harris Administration, he noted, more Americans than ever are applying to start a new business, and this rule change will build on that historic trend by giving them a second chance. who pursues the dream of American entrepreneurship.
According to the press release, the SBA will remove questions about criminal history from its applications and instead use the best government and private databases to determine program eligibility. In fact: people who are currently in prison and those who have defrauded the Government will not be eligible.
“Studies show that entrepreneurship can reduce recidivism by up to 30% for unemployed and formerly incarcerated people. “The unemployment rate for formerly incarcerated people is typically about 27%, and the median income for formerly incarcerated people is about $10,000 in the first year after the release,” the statement said.
The text itself stated that “the regulatory change will have no adverse effect on the loan repayment process, and that the SBA will continue to conduct diligent fraud investigations on all loan applications in accordance with the Framework Risk Mitigation.”
For more information on SBA loan programs, financial assistance and other services, visit www.sba.gov.
2024-05-02 10:49:39
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