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A criminal record can damage your finances — and your ability to start fresh. In fact, formerly incarcerated people faced unemployment rates five times that of the national average, according to a 2018 study by the Prison Policy Initiative.
Funding opportunities are available to you if you know where to look, even if your financial health isn't where you want it to be.
Rebuilding is about more than just work — and you may need more than business funding to get fully on your feet.
School can be a great way to get your life going in the direction you want to take it. And student loans can be used for more than universities — you can pay for trade or online schools too.
The requirements for a federal student loan and other financial aid are clearly outlined on the Federal Student Aid website. In many cases, your previous conviction won't affect your eligibility.
Despite your past, you may be able to get a personal loan from a bank or credit union. Typically you'll need to be willing to secure the loan with collateral — which means you risk losing it if you default.
A good credit score of 670 or higher is required in many cases, so carefully read the lenders' requirements for eligibility before you apply. Each loan application that requires a hard pull on your credit history could shave a few points off your credit score on top of taking up your time.
Take caution when applying for a short-term personal loan. While they’re easier to qualify for than traditional loans, you can wind up paying a lot more or getting trapped into a cycle of debt.
Explore both traditional and nontraditional financing options to get a business off the ground — or take a current one to the next level.
Small Business Administration (SBA) microloans are available through community development financial institutions and nonprofits — and they are open to people with a criminal record. These loans are typically easier to qualify for than traditional bank business loans and can be used to fund a startup, as working capital or to purchase inventory or equipment.
Loans are up to $50,000 and have a maximum term of six years. And unlike other SBA loans, microloans aren't guaranteed — so there's no guarantee fee.
Get your business going by turning to a crowdfunding platform. While not a loan in the traditional sense, crowdfunding offers an opportunity to get financing at a low cost that you typically don't need to pay back. Plus, your background isn't checked for most of these platforms.
Better than anyone, your close friends and family know you and the limitations you face as you get your life moving again. If you decide to seek help from family members or friends, get the details of your loan in writing. This might include the amount, repayment terms and interest rate.
A written agreement can help you stay accountable and both parties avoid confusion as you repay the loan.
Both commercial real estate loans and equipment financing are secured forms of financing — what you're purchasing serves as collateral. Having collateral that secures the loan gives lenders the assurance that they will be paid back — and if you default, they can collect the collateral to repay what you borrow.
As a result, your lender may not find your criminal history as important . But your collateral will need to be in good enough shape to outweigh the perceived risk your history presents.
Online lenders may offer more flexibility than banks and credit unions when it comes time to qualify for your loan. Plus, most of these lenders won’t disqualify you if you have a criminal history — as long as you meet other eligibility requirements.
But you may not be able to borrow as much as you would from a traditional lender. And you may be on the hook for an origination fee of 5% of the loan amount or more.
For smaller loan amounts, you may be able to rely on a short-term business loan solution. Be careful though — requirements aren't as tough for these types of financing, but they can end up costing significantly more.
You'll find many grants that come from the local, state or federal government — but private and community organizations may have options too. Unlike loans and other types of financing, you do not have to pay them back.
Grants.gov is a great place to start when it comes to looking for grants from the federal government. Grants are available to small businesses and individuals, and a criminal record won't automatically disqualify you.
If you have low income and need help with basic necessities like food, medical expenses, housing and other costs, the federal government also offers federal benefit programs for individuals and families in need to help lower expenses and help them become more self-sufficient.
You can find private grants awarded by foundations, nongovernment agencies and corporations. They are typically easier to get than federal grants, and you may be able to get your funds more quickly. Because these grants tend to focus on local communities, there can be fewer applicants than for federal grants, so you may have a better chance of receiving funds.
If you can show financial need and haven't earned an undergraduate, graduate or professional degree, you may be eligible for a Pell Grant from the federal government. While awards typically won't cover the full cost of attendance, proving you're eligible for one can allow you to qualify for other need-based student financial aid.
It can take more than only financial resources to be successful. You may find even more assistance through:
A criminal record can make it challenging to get funding — but it’s not impossible. If you want to finance your business or go back to school, understanding all your options is your first major step.
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Shopify merchants may be able to get funding without a credit check.
You only have until the end of March to get your next application in.
President-elect Joe Biden plans to extend the pause on federal student loan payments and interest past January 31st — and may cancel some debt.
First Draw loans are now available through nonprofit lenders, with Second Draw loans following shortly behind.
If you’re a current Simple or Azlo customer, here are your options for switching banks.
We take a look at national home loan data & trends and speculate where the mortgage market is heading.
An alternative to high-cost students loans for STEM majors at qualifying HBCUs.
While you can get started on your loan application today — you’ll still need to wait for funding.
You might be able to apply for more funding on your PPP loan, get a second PPP loan or take advantage of a new grant program.