Summary#
This bill would create the "New Start Program" inside the Small Business Administration. The program would award competitive grants over a 5-year period to organizations that run entrepreneurship training and supports for currently incarcerated and formerly incarcerated people. The SBA Administrator must set up the program within 180 days of enactment, work with the Bureau of Prisons so services can reach people still in custody, and try to distribute grants across U.S. regions.
Grants would be $100,000 to $500,000 per recipient each year while the program exists. Eligible grant recipients include small business development centers, women’s business centers, SCORE chapters, microloan intermediaries, Community Advantage lenders, and partnerships of these groups. Applications must show community ties, a curriculum, plans to reach target people, and (for programs serving formerly incarcerated people) connections with lenders or microloan intermediaries. The Administrator may give priority for applications with non-Federal funding commitments, local market plans, links to job training, a record of serving justice-impacted people, or services timed for people leaving Federal custody within 18 months.
Grant recipients must try to link participants to federal small-business resources and report yearly to Congress on participants, attendance, retention, loans made, and other program details. After the program ends, the Government Accountability Office must evaluate services, oversight, and program performance.
What it means for you#
- If you are currently or formerly incarcerated: the program would fund local groups that may offer business training, one-on-one help with plans, mentoring, and access to capital or microloans. It does not guarantee services or funding to any individual.
- If you run or work for a small business support organization: you could apply for a grant if you meet the application rules and partner with lenders when required.
- If you are a lender or funder: the program asks for links to microloan intermediaries and Community Advantage lenders to help connect participants to capital.
Expenses#
- Individual grants are set to be greater than $100,000 and less than $500,000 per grantee each year while the program runs (5 years).
- The bill authorizes "such sums as are necessary" to carry out the program. No total appropriation amount or overall cost estimate is provided in the bill text.
- The bill requires annual reports to Congress and a GAO evaluation after the program ends, which could involve additional administrative costs. No publicly available information gives total program cost or expected number of grants.
Proponents' View#
- The bill’s findings state that many people released from prison face high rates of reoffending and unemployment. It cites research saying formerly incarcerated people face large earnings losses and that entrepreneurship can provide economic stability when traditional employment is hard to find. The findings also say entrepreneurship may reduce recidivism and that some formerly incarcerated people are more likely than others to choose self-employment.
Opponents' View#
No publicly available information.