Self-Employment Assistance
If you become unemployed, then you might be eligible to receive self-employment
help as part of your state unemployment benefits.
The national Unemployment Insurance System, which provides funding for
state unemployment benefits, also provides for Self-Employment Assistance,
a special program in which state unemployment offices may voluntarily participate.
The program provides self-employment help and encouragement to eligible
unemployed workers, including those with disabilities,
who want to become self-employed. At last
check, the following states were participating in the program.*
- Delaware
- Maine
- Maryland
- New Jersey
- New York
- Oregon
- Pennsylvania
State unemployment laws typically require unemployed workers to routinely
seek new employee jobs, as one of the conditions
to remain eligible to collect weekly unemployment compensation. Under the
Self-Employment Assistance program, unemployed workers may remain eligible
to collect a weekly sustenance allowance by attempting to become self-employed,
instead of looking for new employee jobs.
Self-employment under the program includes starting up a small business
or becoming an independent contractor, such as a
consultant. The weekly allowance is the same dollar amount as weekly unemployment
compensation, which varies by state.
As as a self-employed individual, you'll have to pay
quarterly taxes on your own and provide yourself with "employee" benefits,
such as
health and
disability insurance.
(Meanwhile, you might be entitled to extend your employer-provided health
insurance through COBRA.) To learn more, visit
the U.S. Small Business Administration (SBA),
a government agency that provides free self-employment help. 
Generally, to be eligible for the Self-Employment Assistance program,
as indicated, you must have first become eligible to collect state
unemployment benefits, such as because your employer permanently terminated your
employment through no fault of your own.
Then you must be identified by the state unemployment office as an unemployed
worker whom, according to statistics, is likely to exhaust unemployment
benefits before landing a new employee job.
If you're interested in receiving self-employment help, then ask about
the program when applying for unemployment benefits. If and when the time
comes, you would apply for unemployment benefits at the relevant state
unemployment office or One-Stop Career
Center.
If the state unemployment office notifies you that you are not eligible
to participate in the Self-Employment Assistance program, then you likely
may appeal the decision; follow the instructions provided in your benefit
denial notice or consult a lawyer.
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