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DPI Submits Comment On SBA’s Business Loan Programs and Surety Bond Guaranty Program
November 13, 2023–Due Process Institute and other organizations submitted comments regarding the Small Business Administration’s (SBA) proposed rule, Criminal Justice Reviews for the SBA Business Loan Programs and Surety Bond Guaranty Program. The proposed rule eliminates existing criminal background requirements for SBA-backed loan and surety programs for small business owners. The only prohibition for access to SBA-backed loan and surety programs would be the incarceration status of the applicant, which would be subject to verification. An applicant who is incarcerated would not be eligible. Applicants would be reviewed for any connection to fraud related to pandemic programs or other federal programs. It does not prevent lenders of SBA-backed loans from conducting their own criminal history background checks of an applicant to determine the risk as long as lenders’ procedures comply with existing law.
The Criminal Justice Reviews for the SBA Business Loan Programs and Surety Bond Guaranty Program Rule proposed by SBA is long overdue and will provide much-needed capital to small business owners who have been impacted by the criminal justice system. Research published by the RAND Corporation found that roughly 4 percent of small business owners have a criminal record and 1.5 percent have a felony record. The initial restrictions published by SBA in April 2020 prohibited more than 140,000 small business owners with a criminal record from participating in the Paycheck Protection Program, impacting more than 212,000 businesses and more than 343,000 employees. Roughly 30 percent of affected small businesses were owned by a person of color. Revisions to the restrictions reduced the number of ineligible business owners with a criminal record to fewer than 18,000.
Due Process Institute applauds the SBA for proposing this rule to provide access to these loan and surety programs to small business owners who have a criminal record. Individuals who have completed the terms of their sentence and paid their debt to society should have the same access to federal programs like those provided by SBA that any other small business owner could receive. That is basic fairness that is missing in our country’s approach to criminal justice. We strongly support the proposed rule and look forward to future efforts from SBA that provide support for small business owners who have been impacted by the criminal justice system.
We Endorse The Driving For Opportunity Act Of 2023
September 12, 2023–Due Process Institute endorses the Driving for Opportunity Act of 2023, as and recognize the urgency of addressing debt-based driver’s license suspension. Suspensions and restrictions of driver’s licenses for unpaid court fines and fees fail to improve public safety and restrict economic opportunity for millions of Americans. The Driving for Opportunity Act of 2023, a bipartisan bill sponsored by U.S. Senators Chris Coons and Roger Wicker, recognizes the unintended harms of this counterproductive practice and supports communities transitioning away from this strategy.
One in three American families are impacted by fines and fees that are imposed as a result of a criminal or traffic offense. Unpaid fines and fees can lead to a driver’s license suspension or other restrictions on driving. Driving a vehicle is essential for finding and keeping a good job, pursuing education, accessing child care, and obtaining other foundations for a stable and productive life. As Americans struggle to make ends meet, debt-based license suspensions are making it significantly more difficult for families to achieve critical financial stability.
Millions of Americans have a suspended or revoked driver’s license solely because of unpaid court debt rather than unsafe driving. Such “debt-based suspension” is a means through which governments try to compel payment. This system is inherently faulty: someone who cannot drive will likely have a difficult time securing access to work, especially in rural and low-income communities where public transportation is limited, making debt repayment even more difficult or impossible.
Suspensions and revocations of driver’s licenses for non-driving related conduct may harm public safety. Law enforcement officers, prosecutors, and judges lose countless hours enforcing these laws at the expense of responding to more pressing issues in their communities on and off the road. In addition, having a suspended license exposes drivers to additional fines, arrest, incarceration, or other entanglements with the criminal legal system. Half the states, ranging from Texas to New York, have amended their own policies to eliminate or restrict driver’s license suspensions for unpaid court debt.
The Driving for Opportunity Act of 2023 authorizes federal funding to support states that are choosing to end debt-based driver’s license suspensions. Under this legislation, state governments would receive limited federal assistance to manage some of the costs associated with eliminating debt-based suspensions and reinstating licenses. Passage of the Driving for Opportunity Act presents an opportunity for Congress to lift up a data-backed, widely supported policy reform and provide modest support for state governments that are embracing this common sense measure.
We Advocate for Educational Opportunities for Individuals with Drug Convictions
October 28, 2021–Due Process Institute and R Street Institute urge congressional leaders to include the repeal of the denial of the American Opportunity Tax Credit for a felony drug conviction, recommended by the House Ways and Means Committee, in the final budget reconciliation legislation. Under current law, the American Opportunity Tax Credit (AOTC) provides eligible students with a tax credit of up to $2,500 but is not available to students who have been convicted of a state or federal felony drug offense.
Educational opportunities are key to reducing recidivism; research illustrates that individuals who have access to educational programs are less likely to commit repeat offenses. Furthermore, a criminal conviction is already a barrier for those who are seeking a better life, but the arbitrary denial of incentives like the American Opportunity Tax Credit because of a felony drug conviction only makes those barriers more difficult to get through.
Even though Due Process Institute and the R Street Institute do not offer a unified position on the pending budget reconciliation legislation, we strongly support the repeal of the denial of the American Opportunity Tax Credit for students with felony drug convictions who are seeking to improve their opportunities and enhance their lives and communities.
We Support Abolishing Juvenile Court Fees in Oregon
June 16, 2021–Due Process Institute joined a letter with bipartisan and national organizations calling for the passage of Senate Bill 817 to abolish juvenile court fees in Oregon. These fees and fines – costs and monetary sanctions imposed on youth and families for the youth’s involvement in the juvenile delinquency system – operate in part as a regressive tax but generate little to no net revenue, collecting them at low rates with high costs.
Studies consistently show that juvenile fees and fines create barriers for youth and families, trapping them in cycles of debt and court involvement. Further, fees and fines are linked to higher recidivism rates and lower positive social spending, undermining community safety and rehabilitation.
We Support Ending Juvenile Fees in Colorado
May 19, 2021–Due Process Institute joined a bipartisan coalition urging the Colorado State Assembly to pass House Bill 1315 to end the assessment and collection of juvenile fees and costs. These fees include charges for public defender applications, genetic testing, restorative justice programs, miscellaneous court costs, late payment fees, and come with harsh penalties and other negative consequences for nonpayment.
These are a regressive tax on vulnerable Coloradans, create additional barriers for youth and families, and trap them in cycles of debt and court involvement. Furthermore, juvenile fees are linked to higher recidivism rates and undermine community safety and youth rehabilitation. By ending juvenile fees that only push youth deeper into the criminal legal system, Colorado would achieve common-sense justice reform while also benefiting from long-term fiscal savings.
We Endorse Bipartisan Bill That Would End Counterproductive Debt-Based Driver’s License Suspensions
March 26, 2021–Many states suspend an individual’s driving license solely because they cannot afford to pay a debt they owe their state or local court system. These policies make it more difficult for individuals to pay off that underlying debt and prevents them from maintaining stable employment. In the midst of COVID-19, these concerns are even more pressing.
Due Process Institute has joined a coalition of 20 groups working with Congressional leaders to end these problematic driver’s license policies by supporting today’s reintroduction of the Driving for Opportunity Act. This bill would help states end a counterproductive practice—suspending driver’s licenses simply because people cannot satisfy a financial obligation—and to enact smart, data-driven policy on fines, fees, and driving license privileges.
DPI Supports Effort to End Counterproductive Driver’s License Suspension Policies
July 6, 2020–Many states suspend an individual’s driver’s license solely because they cannot afford to pay a debt they owe their state or local court system. This makes it more difficult for these individuals to pay the underlying debt and prevents them from being able to maintain stable employment. These concerns are even more pressing given COVID-19.
Due Process Institute has joined a bipartisan coalition of 15 groups working with Congressional leaders to end these counterproductive policies by passing the Driving for Opportunity Act. This bill will help states who want to enact smart, data-driven policies related to the use of fines and fees in our justice system.
DPI Calls for Congress to Pass Four Bills to Advance Second Chances
April 1, 2020–In honor of Second Chance Month, Due Process Institute announces its endorsement of the following pieces of bipartisan federal legislation: Prison to Proprietorship for Formerly Incarcerated Act (H.R. 5065), Trafficking Survivors Relief Act of 2020 (S. 3240 / H.R. 3627), Shift Back to Society Act of 2019 (H.R. 4253), and Fair Hiring in Banking Act (S. 3441).
“April 2020 has been widely recognized as Second Chance Month. It provides us all with an opportunity to consider how we can help justice-involved community members acquire a true second chance to achieve their full potential in life,” said Shana-Tara O’Toole, President of Due Process Institute. “Congress has an opportunity this April to adopt several meaningful reforms that will have a positive impact in the lives of millions of Americans with a criminal record. Now, more than ever, we urge Congress to pass these four bipartisan supported reforms quickly to help those in need move on from the shadow of their past.”
To learn more about these bills, see our recent blog post.
Fair Chance Act Becomes Law
December 20, 2019–“Due Process Institute views the Fair Chance Act as a law that will hopefully continue the momentum of providing meaningful second chances to those who need them,” said Shana-Tara O’Toole, President of Due Process Institute. “And we continue to encourage Congress to consider additional much-needed important next steps—supported by Members on both sides of the aisle—to improve the criminal legal system.”
Due Process Institute Endorses the REAL Act
April 9, 2019–Due Process Institute is endorsing the Restoring Education And Learning (REAL) Act [S. 1074; H.R. 2168] that has been proposed in both the Senate and the House. The original cosponsors are Sens. Brian Schatz (D-HI), Mike Lee (R-UT), and Dick Durbin (D-IL) and Reps. Danny Davis (D-IL), Jim Bank (R-IN), Barbara Lee (D-CA), and French Hill (R-AR).
“Our justice system fails us if the people returning back into our communities after incarceration do not succeed and the REAL Act takes an important step towards addressing an existing failure,” said Shana O’Toole, President of Due Process Institute. “Education is a critical piece of preparing incarcerated individuals for reentry. After our work on the First Step Act, we know how important Pell eligibility is for establishing much-needed educational programs and learning behind the wall.
“Incarcerated individuals deserve a meaningful opportunity to educate themselves in order to prepare to rejoin us as productive members of society—and we are grateful to see that providing this kind of support is a bipartisan cause.”
Due Process Institute Appears in Morning Consult
April 6, 2018–Due Process Institute’s President Shana O’Toole was featured with co-author Jason Pye of FreedomWorks in the Morning Consult for their piece, “Second Chance Month Brings Opportunity for Prison Reform.”
Due Process Institute Celebrates April as Second Chance Month
April 1, 2018–Due Process Institute has joined Prison Fellowship as a partner celebrating Second Chance Month, raising awareness for the millions of Americans with a criminal record who deserve a second chance.