In November 2023, Impact100 Garden State received a Spotlight Award from Philanos, a national network of women’s giving circles, for its 2019 grant of $110,000 to UCEDC. The grant funded a pilot of what became the highly successful Entrepreneurship as a Second Chance program for formerly incarcerated people. Impact100 Garden State was selected for the award because of the grant’s DEI focus, commitment to trust-based philanthropy and role in inspiring others to support the program. Below is the application for the award, which highlights the tremendous achievements of UCEDC’s program.
Transforming Lives and Communities: The Impact of the Entrepreneurship as a Second Chance (ESC) Program
Impact100 Garden State realizes that reintegration into society for individuals returning from incarceration is one of our country’s most complex, nuanced, and multifaceted issues. Lack of resources for and prejudice towards these individuals prevents many from finding employment or being underemployed, which facilitates recidivism. We are also aware that entrepreneurship offers a viable option for formerly incarcerated individuals. Owning one’s own business allows individuals an opportunity to showcase their current talents and avoid stigma; moreover, since licensing requirements can bar reentrants from well-paying jobs in the private and public sectors, entrepreneurship overcomes these barriers.
In 2019, we awarded a $110,000 grant to the Union County Economic Development Corporation (UCEDC) to establish Entrepreneurship as a Second Chance (ESC). Our membership recognized that the ESC proposal expressed our commitment to promoting equity and inclusion to a population that had long been excluded from opportunities to be self-supporting, contributing members of their communities.
The ESC pilot program was initially set to launch in Fall 2020, but the COVID-19 pandemic made that target date unreachable. Impact 100 Garden State encouraged UCEDC to take the appropriate time to ensure the program’s success. Recognizing the health risks of attending in-person training, UCEDC changed the model to virtual classes. Rather than use Impact funding to purchase food at in-person meetings, UCEDC equipped each of the original 12 participants with computers installed with Microsoft Office and QuickBooks.
The first ESC cohort launched in the Spring of 2021. Of the original 12 participants, 10 have registered businesses and are giving back to their communities. With these impressive results, UCEDC was has obtained $400,000 in additional funding to sustain and expand the program.
As of fall 2023, ESC has graduated 52 individuals who attended one of the five seven-week sessions. Equally impressive, ESC has provided over $82,500 in forgivable loans to participants who are engaged with their mentors. The ESC program now receives between 50-75 applicants for each session. It is worth noting that the ESC program includes women, who comprise 20% of the total served. This proportion of participants mirrors the ratio of men and women in New Jersey’s current prison population.
ESC’s seven-week program combines intensive classroom sessions with one-on-one mentoring, providing participants with essential tools and knowledge to launch their entrepreneurial ventures. The core components of the program not only foster business acumen but also instill a sense of purpose and self-confidence in the participants. When asked about his experience with the ESC program graduate Rafael Cruzado said, “It’s been amazing, actually, because I got to learn a lot. They teach you things that you don’t really think about when you’re starting up a business or when you’re trying to grow a business. And I was able to get a lot of feedback and a lot more clarity on what I wanted to do with my business.” The impact of this educational support is profound, not only for the individual but for the community as a whole.
In addition to the rigorous classroom and mentorship sessions, UCEDC offers lending services to program graduates. These loans serve as a vital financial lifeline for individuals who may otherwise struggle to secure traditional funding due to their criminal history. Notably, the forgivable nature of these loans, contingent on participants’ continued engagement with mentors, promotes accountability and fosters a sense of responsibility among program graduates. This accountability contributes to the participants’ personal development and ensures that they remain committed to their entrepreneurial journeys.
Entrepreneurship is not just about launching a business; it’s about sustaining and growing it over time. UCEDC provides program participants with ongoing support through a diverse range of business training courses and mentoring opportunities. The ripple effect of this initiative extends beyond the individual participants. As these entrepreneurs establish and grow their businesses, they become engines of economic activity within their communities. They create jobs, stimulate local economies, and contribute to the vitality of underserved areas. In fact, UCEDC’s ESC participants have referred several returning citizens to the program. Graduate Ron Kinston is responsible for more than ten new applicants, which illustrates how beneficial graduates feel the program is.
Impact100 Garden State is very proud to have provided the initial investment in the ESC and congratulate the participants and staff for its accomplishments. In our view, the ESC is a model for promoting equity and inclusion so formerly marginalized individuals can thrive and make positive change in their communities.