Unemployment benefits available if you want to self-employed


I just got laid off and a friend of me told me that you had mentioned at some point that unemployment would pay benefits to start a business. Is that true? How do I make that happen?

Depending on your state, yes, it’s true!

If you are receiving unemployment benefits, instead of fulfilling job search requirements, you can instead enroll in a retraining program, or entrepreneur program. You will still receive your benefits as long as you meet the requirements of your program.

The federal government has recognized the trend of increasing self-employment, by passing a $35 million Self-Employment Assistance Program (SEAP) that was tucked into the payroll tax-unemployment extension bill passed in March of 2012.

The federal government set aside $35 million for states to implement a SEAP program and help unemployed become their own boss and start their own small business. Under the SEAP program, unemployed workers will be able to receive or maintain their unemployment insurance benefits while they start their own small businesses – a full-time job in its own right – without having to look for other full-time work. Currently, these programs are available in New Jersey, Oregon, and Washington State. California is working towards implementing such a program.

Washington’s program requires that the participant meets the following conditions:

  1. Qualify for regular unemployment benefits.
  2. Enroll in a training program that is approved by the Employment Security Department’s commissioner.
  3. Be identified as likely to run out of benefits or be eligible for Commissioner-Approved Training (CAT).

There may be additional requirements to remain in the program such as income levels, weekly progress reports, or required training. For more information on Washington’s program, visit the Employment Security Department’s website.

If you’re not sure if your state has a SEAP program, contact your local unemployment office for information. Many states are trying to implement programs and need the support of the community to get it started.





Think about all the extra money you could make by being a mystery shopper, starting your own business, or working from home for a legitimate company. Take control of your income and check out our LEARN page for a list of classes, books, and more!

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