The bill modifies rules for state-run self-employment assistance programs by eliminating the requirement for participants to be likely to exhaust regular unemployment compensation and by adjusting the activities that participants must engage in. It also extends the effective date by 2 years from the enactment of the Act and requires the Secretary of Labor to issue regulations and guidance to administer the Act. The changes will impact individuals seeking self-employment assistance and the state agencies that administer these programs, potentially expanding the number of participants and broadening the scope of activities that qualify under the program.
New Opportunities for Business Ownership and Self-Sufficiency Act
This bill increases the percentage of individuals who may participate in a Self-Employment Assistance (SEA) program, generally expands eligibility for such programs, and modifies certain SEA program requirements.
As background, an SEA program provides an individual with an SEA allowance, rather than regular unemployment compensation benefits, if such individual is (1) eligible for unemployment compensation benefits and identified as likely to exhaust such benefits, (2) participating in self-employment assistance activities which include entrepreneurial training, business counseling, and technical assistance and are approved by the state, and (3) working full-time on establishing a business and becoming self-employed. Under current law, the number of individuals participating in an SEA program may not exceed 5% of the individuals receiving regular unemployment compensation benefits in the state.
The bill
- increases the percentage of individuals who may participate in a state SEA program to 10%,
- eliminates the requirement that an individual be determined likely to exhaust unemployment compensation benefits (generally expanding individual eligibility for an SEA program), and
- requires individuals to certify (at least weekly) that they are working full-time on establishing a business and becoming self-employed.
Finally, the bill allows individuals to meet the requirement to participate in state-approved self-employment assistance activities if such activities either (1) include entrepreneurial training, business counseling, and technical assistance (permitted under current law); or (2) are performed pursuant to a state-approved business plan and market feasibility study.
