New York, NY - January 5, 2017 - The U.S. Small Business Administration (SBA) recently announced a competition that will expand access to entrepreneurial education microloans to previously incarcerated individuals.
Tameka Montgomery, Associate Administrator for the SBA’s Office of Entrepreneurial Development said, “Entrepreneurship and small business ownership are proven paths toward wealth creation and financial independence, especially for people who might otherwise feel trapped by their circumstances…With the training and startup tools provided through this competition, these citizens can finally start to rebuild their lives and build relationships with their families and communities.”
Known as The Aspire Challenge, this SBA contest will make up to 16 awards of $75,000 to organizations for a total of $1.2 million across the nation to assist in delivering entrepreneurial training and microloan assistance to formerly incarcerated individuals.
The Aspire Challenge will build on the momentum of the Aspire Entrepreneurship Initiative, a public-private partnership announced in August 2016 between the SBA, W.K. Kellogg Foundation, and microlender Justine Petersen. The pilot initiative connects formerly incarcerated individuals to entrepreneurial training, education and microloans, with a specific focus on those who are parents.
With approximately 60 percent of formerly incarcerated individuals remaining unemployed one year after release, self-employment must be seen as a viable alternative. The competition will award prizes to entrepreneurial support organizations that propose innovative solutions to equipping returning citizens with the tools they need to succeed in entrepreneurship.
SBA New York District Director Beth Goldberg welcomed the initiative and invites New York organizations to apply for the contest. “This new initiative is especially important because it pledges support to a vital part of the economy. These entrepreneurs often prove to be the most resilient, turning previous life difficulties into successful businesses.”
The SBA will award the prizes to organizations through the online competition platform, www.challenge.gov. The competition is open to all for-profit and non-profit entities and organizations, and they must have an account in the System for Award Management (SAM). The submission period opens December 29, 2016 and will end on February 12, 2017. The SBA anticipates that winners will be announced no later than March 14, 2017.
Background
Approximately 60 percent of formerly incarcerated individuals remain unemployed one year after their release, raising the risk of recidivism and resulting in lost lifetime earnings. This cycle has major implications for American families as nearly half of all U.S. children have at least one parent with a criminal record. In 2015, SBA expanded its Microloan Program to small business owners currently on probation or parole. The Aspire Entrepreneurship Initiative and the Aspire Challenge expand on policy changes to give formerly incarcerated individuals the opportunity to generate income and create economic prosperity for their families.
About the SBA New York District Office:
The SBA New York District Office delivers its programs and services throughout New York City, Long Island and the downstate counties of Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester. Our Long Island Branch Office Services Long Island. Visit www.sba.gov/ny for more information including resource partners, lenders, workshops, success stories and other resources to help businesses start, grow and succeed.