This past Wednesday, May 1st, the SBA announced an unprecedented change to their regulations by notice and comment, going into effect on May 30, 2024. The change removes limitations that restrict potential debtors with a criminal history and those who are on parole or probation.
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Of course, the regulatory change comes with caveats in the interest of public safety, noting that currently incarcerated individuals are ineligible, as well as businesses in the child care industry with leading personnel who have committed an "offense against children."
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The lifted restriction is largely supported across government officials as a means to stability for those reentering society, with hopes of reducing recidivism if said individuals struggle to overcome the stigma of a criminal record while on the job hunt. Some pushback was received, for example, the public suggestion to implement a "waiting" period for those released from incarceration, but the agency's rebuttal that an additional timeline would be "overburdensome for compliance" was inevitably upheld.
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There are presumed to be around four million US citizens on parole or probation whose lives could be changed following this regulatory update.
