Self Employment Assistance Program For Startup Financing

In 2010 the US government introduced the Self Employment Assistance Program, designed to help starts ups.

SEA is not available everywhere. Each state determines whether or not they will offer such assistance, and the particulars of the distribution.

SEA was established specifically to help workers who have been laid off during the financial crisis AND who can start viable small businesses. States are allowed to pay a self-employed allowance instead of regular unemployment insurance benefits while entrepreneurs are getting started.

Traditionally with unemployment insurance, the recipient was not allowed to work, even in their own business. Under this program, they are being helped to work ... in their own businesses. It is a strong recognition that it is the small business engine that will likely be "the little engine that could" for the economy.

There are caveats, of course. Most importantly, few states offer it. As of this writing, only DELAWARE, MAINE, MARYLAND, NEW JERSEY, NEW YORK, OREGON and PENNSYLVANIA have active Self Employment Assistance Programs.

And just as importantly, those who are accepted into the program cannot extend their unemployment insurance benefits beyond the initial period. This can be a serious drawback for many families.

Nor will this program cover all the start up costs you might have. Thousands of dollars could still come from own pocket.

To Apply For The Self Employment Assistance Program

Self employment allowances are the same amount as the regular unemployment insurance benefits would have been.

In spite of the drawback to the program, entrepreneurs are beginning to learn about it, and use it. If you are interested, check your state Unemployment Insurance Agency as soon as possible after becoming unemployed. At the time you file your claim, ask for information about the SEA Program in your state. In fact, even if you are on unemployment now, ask and see if there are any loopholes in your state that would still let you qualify.