

You’ve been laid off from your job, and you’re applying to collect unemployment benefits. But instead of looking for another job, this time you want to finally start that business you’ve been dreaming about for years.
Several years ago, the Department of Labor launched an initiative for a program called Self Employment Assistance (SEA). The goal was to allow people collecting unemployment benefits to keep receiving those benefits at the same time they worked on starting businesses of their own.
That was back in 2012 when the unemployment rate was higher than it is now (the United States nation was just coming out from under the shadow of the Great Recession). But despite today’s low unemployment rates, not all of us are content to stay employees—and people still get laid off or otherwise become eligible for unemployment benefits.
State rules regarding unemployment benefits and how to qualify for them vary from state to state. In general, however, recipients typically have to prove they are looking for a new job in earnest in order to keep getting unemployment benefits.
When the SEA initiative was launched, the DOL encouraged states to create their own SEA programs. At one time, it even offered them funding to do so. But only a few states offer SEA programs today:
SEA programs don’t provide “easy money.” To receive self-employment assistance benefits, recipients typically need to demonstrate they’re starting a business with the potential to provide full-time income. They need to write a business plan, take classes to improve their business skills, or otherwise show that they’re serious about entrepreneurship.
If you live in Mississippi, Oregon, New Hampshire, or New York, check with your state’s unemployment insurance program via the links above to get details.
It’s still possible to lay the groundwork for your own business while you’re unemployed and receiving benefits. Keep in mind, however, that any income earned while you’re on unemployment will reduce your benefits. That’s true whether the income is from an outside source or from self-employment.
Working with a SCORE mentor is one way to ensure you have someone to hold you accountable for making progress on your startup. The SCORE website also has tons of templates, guides, webinars, online training courses, and other resources to help you learn the ropes of starting your own business.
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Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.