Prison to Proprietorship for the Formerly Incarcerated Act
- Bill Number
- H.R. 8416
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-04-21: Referred to the House Committee on Small Business.
- Last Updated
- 2026-05-01T19:14:08Z
AI-Generated Summary
Purpose
The Prison to Proprietorship for the Formerly Incarcerated Act (H.R. 8416) aims to help people recently released from federal prisons start or grow small businesses by providing them with specialized counseling and training through existing government resources.
Key Provisions
- New Program Creation: Adds a new Section 49 to the Small Business Act, requiring the Small Business Administration (SBA) Administrator, working with the Bureau of Prisons Director, to direct the Service Corps of Retired Executives (SCORE)—a group of volunteer business mentors—to offer nationwide entrepreneurship services to "covered individuals" (people formerly incarcerated in federal prisons).
- Core Services:
- Mentoring, workshops, and videos tailored for starting or expanding a small business.
- Training on identifying business opportunities, including creating a skills profile (list of personal abilities), business plan (step-by-step business roadmap), and transition plan (re-entry strategy); finding funding sources; and connecting to local small business support.
- Ongoing Support:
- One year of regular one-on-one mentoring to develop business plans and entrepreneurial skills.
- Help finding local small business resources and funding, including assistance with loan or grant applications.
- Workshops customized for the unique needs of formerly incarcerated people.
- Evaluation:
- SCORE must survey participants on their satisfaction with the services.
- SBA must submit an annual report to House and Senate Small Business Committees, including: number of people mentored, mentorship hours, participant demographics (age, gender, race, ethnicity), survey results, and other relevant data.
Significant Changes to Existing Law
- Inserts the new Section 49 into the Small Business Act and renumbers the existing Section 49 as Section 50.
- Mandates SCORE (already authorized under Section 8(b)(1) of the Act) to expand its services specifically for formerly incarcerated federal prisoners, without creating new programs or funding.
Potential Impacts
- Government Agencies: Increases workload for SBA (coordination, reporting) and Bureau of Prisons (partnership); leverages existing SCORE volunteers, potentially at low additional cost.
- Citizens: Provides formerly incarcerated individuals with practical tools for economic independence, which could improve re-entry success, reduce reliance on public assistance, and lower recidivism rates through entrepreneurship.
- No direct impact on international relations.
Main Stakeholders Affected
- Formerly Incarcerated Individuals: Primary beneficiaries receiving free mentoring and training.
- SBA and SCORE: Responsible for delivering services and reporting.
- Bureau of Prisons: Coordinates to identify and refer eligible participants.
- Congressional Committees: Receive performance reports (House Small Business Committee; Senate Small Business and Entrepreneurship Committee).
- Local Small Business Networks: May see increased engagement as participants seek resources and funding.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes a mandatory program using existing SBA infrastructure, with built-in accountability via surveys and reports; no new appropriations specified, relying on current volunteer and administrative resources.
- Constitutional: No apparent issues; aligns with Congress's authority over federal commerce and rehabilitation programs.
- Political: Bipartisan sponsorship (introduced by Reps. McGarvey and Burchett); promotes re-entry support as a pathway to self-sufficiency, potentially influencing broader criminal justice reform discussions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. McGarvey, Morgan [D-KY-3]
Cosponsors (1)
Recent Actions
- 2026-04-21: Referred to the House Committee on Small Business.
- 2026-04-21: Introduced in House
- 2026-04-21: Introduced in House
Bill Versions
- Prison to Proprietorship for the Formerly Incarcerated Act — issued 2026-04-21 — PDF (4 pages)