Small Business Administration Announces “Ban the Box” Initiative for SBA Loan Applications
The Small Business Administration (SBA) has announced a rule change that will “Ban the Box” on SBA loan applications “to improve pathways to entrepreneurship for formerly incarcerated individuals by eliminating SBA capital program restrictions on Americans who have completed their sentences for past crimes,” according to a Congressional Black Caucus press release.
The SBA “Ban the Box” initiative is a part of United States President Joe Biden’s administration’s latest efforts to expand access to the more than $700 billion in federal small business contracts to individuals from underrepresented communities, including those who were formerly incarcerated and disproportionately Black. The new SBA “Ban the Box” initiative will:
- Remove most restrictions on loan programs that are based on an applicant’s criminal record, making millions more Americans eligible for SBA loans.
- “Ban the Box” on SBA loan applications to stop the chilling effect that criminal history questions have on loan applications.
“Ban the Box” laws can also apply to private employers and usually delay inquiries by them into an applicant’s criminal history until later in the hiring process after a conditional job offer to the applicant. These laws allow applicants to be evaluated based on their knowledge, skills, and abilities rather than being prematurely excluded due to their criminal history.
“Ban the Box” – which refers to the box on some job applications that applicants are asked to check if they have a criminal record – has become a nationwide movement. As of the beginning of 2024, 37 states and more than 150 cities and counties have adopted “Ban the Box” legislation, according to a guide from the National Employment Law Project (NELP).
ClearStar is a global Human Resources technology company specializing in background checks, drug testing, and occupational health screening. ClearStar offers employers an interactive “Ban the Box” map to help them comply with the growing number of “Ban the Box” laws. To learn more about workforce screening solutions and services, contact ClearStar.
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