How a Criminal Record Can Affect Your Business in Louisiana
August is Black Business Month, a time to celebrate the more than 3 million Black-owned businesses across America and the entrepreneurs who built them. At Bynog Advocacy and Defense in Lafayette, we celebrate that resilience every day. Our founder is a Black woman business owner who left a career as a federal prosecutor to build a law firm that fights for the people of Louisiana.
But this month, we also want to talk about something that doesn't get enough attention: the ways a criminal record can stand between a person and their business goals. For Black entrepreneurs in particular, who already face disproportionate barriers to capital, contracts and commercial space, a criminal record adds another layer of obstacles that can feel insurmountable.
The good news is that Louisiana law provides paths forward. Understanding what those barriers are and what options exist to overcome them is the first step.
Professional Licensing and Certifications
Many professions in Louisiana require state-issued licenses or certifications, and many licensing boards ask about criminal history as part of the application process. This affects a wide range of fields, including contracting, cosmetology, healthcare, insurance, real estate and financial services.
A felony conviction can delay or disqualify an applicant from receiving a professional license, depending on the offense, its relevance to the profession and how much time has passed. Some licensing boards have broad discretion. Others follow specific statutory restrictions.
For aspiring business owners, this means that even after serving a sentence and completing probation, the record can continue to block the very license needed to operate legally.
However, Louisiana has taken steps to reduce these barriers. In recent years, the legislature has passed reforms limiting the ability of licensing boards to deny applications based solely on criminal history, particularly when the conviction is not directly related to the profession. An experienced criminal defense attorney can help you understand whether your record affects your licensing eligibility and whether expungement could remove the barrier entirely.
Commercial Leasing
Securing a physical location is a fundamental step in launching many businesses. But landlords (commercial and residential) frequently run background checks on prospective tenants. A felony conviction, and in some cases even an arrest record, can result in a denied lease application.
This barrier disproportionately affects Black entrepreneurs, who are already more likely to face discrimination in the commercial real estate market. A criminal record compounds that disadvantage.
If your record is eligible for expungement, clearing it before applying for a lease can significantly improve your chances. An expunged record is removed from public background check databases, meaning a landlord's standard screening would not reveal it.
Access to Capital
Securing a business loan is one of the biggest challenges for any entrepreneur, and the data shows that Black business owners face steeper odds. According to Federal Reserve research, Black-owned businesses are approved for bank loans at a rate of 46.5%, compared with 75.3% for white-owned businesses. A criminal record can make those odds even worse.
Banks and lenders consider criminal history as part of their risk assessment. A felony conviction, a history of fraud-related offenses or even a pending charge can result in a loan denial. Some federal lending programs, including certain Small Business Administration programs, have specific criminal history restrictions.
For entrepreneurs seeking private investment or venture capital, a criminal record can also create trust barriers, even when the record is unrelated to the business.
Employment and Hiring
If your business involves hiring employees, your own criminal record may not directly prevent you from employing others. But if your business requires employees to pass background checks, for example, in healthcare, education or government contracting, your record as the business owner may come under scrutiny.
Louisiana's Fair Chance law, which took effect on Aug. 1, 2021, restricts how employers use criminal history in hiring decisions. Under La. R.S. 23:291.2, employers cannot consider arrests that did not result in convictions. For convictions, the law requires an individualized assessment considering the nature of the offense, how much time has passed and whether the conviction is directly related to the job duties.
While this law primarily protects job applicants, it reflects a broader shift in Louisiana toward treating criminal history with more nuance a shift that benefits business owners with records as well.
Government Contracts
Many local, state and federal contracts require background checks for the contracting entity and its principals. A criminal record particularly for offenses involving fraud, theft or dishonesty can disqualify a business from bidding on or receiving public-sector contracts.
For Black-owned businesses that rely on government contracting as a revenue source, this barrier can be especially significant. Louisiana's Disadvantaged Business Enterprise and small business certification programs provide opportunities, but a disqualifying criminal record can undercut eligibility.
What You Can Do About It
If a criminal record is affecting your ability to build, grow or operate a business in Louisiana, there are concrete steps you can take.
Explore expungement. Louisiana law allows for the expungement of certain arrests and convictions. Once expunged, the record is removed from public view meaning it will not appear on standard background checks.
Know your rights under the Fair Chance law. If you're applying for a job or a contract and your criminal history is being used against you, understand what the law does and does not allow.
Consult with a criminal defense attorney. An attorney experienced in Louisiana criminal law can review your record, assess your eligibility for expungement and advise on the best path forward for your specific situation.
At Bynog Advocacy and Defense, our founder's experience as a former federal prosecutor means she understands how the system works from the inside. She has seen how records are built, how decisions are made and how the consequences ripple outward into every part of a person's life.
If you're ready to take the next step, schedule a free confidential consultation today.
Sources
Black Business Month. National Today. https://nationaltoday.com/black-business-month/
Black August. Power Coalition for Equity and Justice. https://powercoalition.org/blackaugust/
Consequences of a Criminal Record in Louisiana. The Johnson Firm. https://johnsonfirmla.com/blog/louisiana-criminal-records-and-your-future/
Louisiana Limits Consideration of Arrest Record and Criminal History in Hiring. Phelps Dunbar LLP. https://www.phelps.com/insights/louisiana-limits-consideration-of-arrest-record-and-criminal-history-in-hiring.html
Louisiana Enacts Law Impacting Employer Consideration of Applicant Criminal Histories. Ogletree Deakins. https://ogletree.com/insights/louisiana-enacts-law-impacting-employer-consideration-of-applicant-criminal-histories/
How a Criminal Record Can Impact Your Employment Opportunities in Louisiana. Alan J. Golden, Attorney at Law. https://www.alanjgoldenesq.com/blog/how-a-criminal-record-can-impact-your-employment-opportunities-in-louisiana/
Louisiana Revised Statutes 23:291.2 — Employer consideration of criminal history. Louisiana State Legislature.
Louisiana Code of Criminal Procedure Articles 971–995 — Expungement. Louisiana State Legislature.
Note: This post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
Frequently Asked Questions
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Yes. There is no blanket law in Louisiana that prevents someone with a criminal record from starting a business. However, certain professional licenses, contracts and lending programs may have restrictions based on the type of offense and how much time has passed.
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The Fair Chance law (La. R.S. 23:291.2) primarily applies to employer-employee hiring decisions. It restricts employers from considering arrests that didn't result in convictions and requires individualized assessments for conviction records. Its protections are most directly relevant when you are applying for employment, but the law's principles reflect Louisiana's broader policy direction on criminal history.
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It can. Banks and lenders may consider criminal history in their risk assessments. Federal lending programs, including some SBA programs, have specific restrictions for certain offenses. Expungement can help by removing the record from public view.
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Expungement removes an arrest or conviction from public background check databases. After expungement, the record will not appear on standard background checks used by landlords, lenders and licensing boards. Not all records are eligible — consult with an attorney to assess your situation.
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It depends on the offense, the licensing board and how much time has passed. Louisiana has passed reforms limiting licensing boards' ability to deny applications based solely on criminal history when the offense is unrelated to the profession. An attorney can advise on your specific circumstances.
