New Start Act Proposes 5-Year Grant Program: Up to $500K Annually for Entrepreneurship Training for Justice-Impacted Individuals

The New Start Act of 2025 is looking to give a boost to individuals with a criminal record by creating a fresh pathway to economic stability: entrepreneurship. This bill directs the Small Business Administration (SBA) to establish the "New Start Program" within 180 days of its enactment. The program's mission is to award grants, ranging from $100,000 to $500,000 annually for five years, to organizations that provide entrepreneurship counseling and training for people who are currently or were formerly incarcerated (often referred to as 'justice-impacted individuals').

From Cell Blocks to Business Blocks: The Big Idea

So, what’s the thinking here? The bill itself lays out some pretty stark numbers: around 600,000 people leave prison each year, and a huge chunk – nearly 77% according to the bill's findings – end up back in the system within five years. A big reason, the bill suggests, is that almost half struggle to find work or earn very little post-release, making it tough to stay on the straight and narrow. The "New Start Program" aims to tackle this head-on by leveraging another finding highlighted in the bill: folks with a record are actually more likely to start their own businesses, and doing so can slash their chances of reoffending by a significant margin (5.3%, a 32.5% decrease from average recidivism rates for employed formerly incarcerated individuals, as stated in Section 2) and boost their income. The SBA will be in charge, working with the Bureau of Prisons to get these programs up and running across the country, ensuring grants are spread out geographically.

Who Gets a Shot and What's on Offer?

This isn't just throwing money out there; Section 3 of the bill details specifics on who benefits and what these programs need to deliver. The grants are for organizations – think existing Small Business Development Centers, Women's Business Centers (WBCs), SCORE chapters, or other non-profits – that can prove they have strong ties to the justice-impacted community and can deliver ongoing, quality training. An interesting detail for Women's Business Centers: grants they receive through this New Start Program won't count towards their usual maximum federal grant limits (under section 29 of the Small Business Act), which could help them expand services for justice-impacted women entrepreneurs even further. Applicants need a solid plan: a curriculum, partners (like microloan lenders or Community Advantage Small Business Lending Companies, as required), and a clear strategy for reaching individuals both inside correctional facilities and those who have been released. The SBA can give a leg up to applicants who bring in other funding, focus on local economic needs, or have a track record of success, especially if they’re helping people within 18 months of their release from federal custody. Imagine someone about to finish their sentence getting access to workshops on how to write a business plan, manage finances, or market a new service – that’s the goal.

Connecting the Dots and Keeping Score

A key piece of this program, outlined in Section 3, is making sure it’s not a dead end. Organizations receiving these grants will be required to connect participants with a broader network of federal support. This includes existing SBA resources like their Microloan Program (established under section 7(m) of the Small Business Act), Community Advantage Lenders, Small Business Development Centers, Women’s Business Centers, SCORE chapters, Veteran Business Outreach Centers, and business centers run by the Minority Business Development Agency. So, if someone completes the training, they're not just handed a certificate; they're guided to the next steps for potential funding or ongoing mentorship. To make sure this is all working as intended, the bill mandates annual reports to Congress detailing who's participating, how they're doing (including retention rates and reasons for non-completion), and whether they're staying out of the justice system. Plus, the Government Accountability Office (GAO) – Congress’s independent watchdog – will conduct a full review of the program within one year of its termination. The bill also clarifies this new initiative won't negatively affect any existing SBA programs, like the one under section 7(m), and authorizes Congress to fund it – meaning the money still needs to be officially allocated each year through appropriations.