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April 12, 2020

Great coverage of the awful work of SBA disqualifying people with any record from CARES small business loans

The Collateral Consequences Resource Center is doing its usual bang-up job covering the misguided new business problems for people who are burdened with any kind of criminal record.  The context these days, of course, is COVID-related, and here is how the CCRC explains the issue in a recent post:

In the past two weeks we have written at length about the U.S. Small Business Administration (SBA)’s “bumpy guidance on criminal history requirements” for small business financial relief during the COVID-19 pandemic (see also “Applying for an SBA loan with a criminal record“)....  Before the pandemic, the SBA didn’t automatically disqualify people for small business loans based on a past criminal record, and we can’t understand why it would suddenly decide to do so now, when small businesses across the country are struggling to stay afloat.   (Preexisting policy, described here, disqualifies a business if it has a principal who is incarcerated, is under supervision, is facing charges, or lacks “good character.”)  The new SBA policy — which automatically disqualifies even certain people who have completed a diversionary program and were never convicted — seems entirely at odds with the wave of recent state and federal law reforms aimed at encouraging reintegration.

Here is all of CCRC's recent posting on this topic:

April 12, 2020 at 03:54 PM | Permalink

Comments

Sounds like a good time for a billion dollar class action lawsuit

Posted by: Rodsmith | Apr 13, 2020 9:45:10 AM

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