Minnesota enacts four major record reforms in 2023

Thanks to a series of criminal-justice reforms enacted earlier this year, Minnesota has burnished its reputation as a national leader in reintegration and criminal record reform.  In a year in which there have been far fewer criminal record reforms than in the recent past, Minnesota’s performance stands out for the variety and breadth of relief granted, in many cases automatically. Here are the four major new laws: Expungement was made automatic for both non-convictions and a range of conviction records, effective January 1, 2025 The pardon process was entirely overhauled to make this relief more available, and expungement for pardoned convictions was made automatic Felony disenfranchisement was limited to periods of actual incarceration A law legalizing adult possession of cannabis made expungement automatic for a broad range of cannabis convictions. These four major new authorities are described below. We expect that the Minnesota legislature’s exemplary performance in enacting these important new provisions will be in for further recognition in our annual round-up of new record reforms.

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SBA proposes to remove criminal record restrictions in loan programs

On September 15, the SBA published for comment a series of rule changes eliminating criminal record restrictions in all of its various federally guaranteed business and disaster loan programs, including rules making business owners ineligible for loans if they are on parole or probation or under indictment.  Application forms and procedures will no longer inquire about a business owner’s criminal history, with one exception: Owners and principal employees who are “actually incarcerated” will remain ineligible. Comments on the proposed rule must be filed by November 14, 2023. The proposed new rule follows the agency’s removal last spring of “character” as a loan criterion in the 7(a) and 504 programs, and its amendment of the applicable Standard Operating Procedures (SOP) to eliminate the “character determination” through which business owners with a felony record had been denied access to federally guaranteed loans.  These earlier changes were described in our post of September 7. The comments accompanying the proposed rule revision explain that it is “narrowly tailored to reduce barriers to access for qualified justice-impacted small business owners.” While the SBA will no longer verify an applicant’s criminal history (other than the fact of current incarceration) the rules changes do affect a lending […]

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SBA takes one step toward fair chance lending, but needs to take another

The U.S. Small Bujsiness Administration has taken several recent steps that promise to make federally guaranteed loans available to business owners with a criminal history. This is an important policy issue we’ve been following for several years, and it appears there may at last be a breakthrough. How big a breakthrough remains to be seen. Following up on its omission of “character” and “reputation” as criteria for 7(a) loans, discussed in this post, the U.S. Small Business Administration issued new Standard Operating Procedures (SOP) for its 7(a) small business loan program. Effective August 1, 2023, the new SOP omits all mention of “good character” as a requirement for loan qualification. This means that applicants with a criminal history who apply to a bank for a federally guaranteed loan will no longer be put through the SBA’s onerous “character determination” process. (Applicants on parole or probation, or in prison, remain ineligible to apply under 13 CFR 120.110(n).) At the same time, the issue of prior criminal history appears to remain relevant in deciding whether to make a loan, since applicants for 7(a) loans (including Community Advantage loans) must still complete Form 912, which contains very broad questions asking about an applicant’s […]

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CCRC seeking a Deputy Director

The Collateral Consequences Resource Center is seeking an enterprising and committed individual with strong technical skills to serve as its Deputy Director. The incumbent will work with the Executive Director in all aspects of CCRC’s program, and will have primary responsibility for maintaining the Restoration of Rights Project (RRP), including its various derivative reports for which CCRC is best known. The RRP is a unique national inventory of laws and practices relating to restoration of rights and criminal record relief in each U.S. jurisdiction, which attracts thousands of visits to the CCRC website each day. Keeping the RRP current in real time requires strong research skills, patience and attention to detail in analyzing complex statutes, and a passion for issues relating to restoration of rights after arrest or conviction. In producing the annual reports on new legislation and issue-specific analyses of current trends, the Deputy Director will have an incomparable opportunity to guide the development of public policy in this important emerging area of the law.  The incumbent will participate in other aspects of CCRC’s work, including the development of policy on federal programs that support entrepreneurs with a criminal history, and will have opportunities to publish scholarly articles and participate in academic […]

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Biden Administration announces actions to promote reintegration

Reprinted below is a list of the actions announced on this day by the Administration to promote successful reentry and rehabilitation.  Notably, the list includes an intention to expand action to business capital by justice-affected entrepreneurs:   Expanding Access to Business Capital. The Small Business Administration will publish a notice of proposed rulemaking, that, if adopted, would remove barriers to eligibility for people with criminal history records who want to start a small business. We understand that the new SBA proposal will be to eliminate almost all inquiries about criminal history on SBA own application forms, and no cease SBA’s policy of conducting “good character” inquiries based on criminal history.  Instead, it will permit SBA lenders to conduct their own inquiries about a loan applicant’s criminal history if they choose to do so.  We will post about this new rule as soon as it is published for comment in the Federal Register.  We will have further comment on some of the other proposed actions described below as they relate directly to collateral consequences.  April 28, 2023 FACT SHEET: Biden-⁠Harris Administration Takes Action During Second Chance Month to Strengthen Public Safety, Improve Rehabilitation in Jails and Prisons, and Support Successful Reentry   HOME BRIEFING […]

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