How to Start a Business while Receiving Unemployment Benefits
Have you ever wanted to start your own business? Did you lose your job, and are you receiving unemployment benefits? If you have an idea for a business and a plan for getting it done, there is a way to take this time and opportunity to start that business, while receiving unemployment benefits. Under the "Self-Employment Assistance" program of your state, you may qualify for assistance in starting a home business or other small business, and avoid having to actively seek other employment.
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Things You'll Need
- Live in a state that has implemented the voluntary program.
- Qualify for unemployment benefits
- A business idea and plan
Instructions
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At this time, in order to qualify for the Self-Employment Assistance Program you will need to be from one of the following states: Delaware, Maine, New Jersey, New York, Oregon and Pennsylvania. If you are from a different state, check with the workforce agency that handles unemployment benefits in your state to see if they have recently added this program. The federally enacted program was designed to enable and encourage dislocated unemployed workers to create their own jobs by starting a small business. If your state is not one of the states with the Program, lobby your politicians to start it in your state. It does not cost them any additional money.
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The next step in your quest to start a business, is to qualify for unemployment benefits. Generally, you must have been permanently laid off from your job through no fault of your own. The state next determines if you are likely to run out of your regular unemployment benefits before you find a job.
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If the workforce agency determines that you qualify for the Self-Employment Assistance Program, then you will not be required to actively seek employment, or full-time education, in order to keep your unemployment benefits. In fact, you may be able to engage in self-employment activities like training, counseling, and technical assistance and still keep your benefits.
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You will receive the same unemployment benefits that you would have if you were actively seeking a wage or salary job, but be able to devote full time to starting your business. Your workforce agency will also have other resources available in helping you to start a business.
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Tips & Warnings
Now is the time to think outside the box. Turn that lemon into lemonade. Most experts believe there isn't a better time to start a business, so why not do it while you still have those unemployment benefits coming in.
Have a business plan. You can get help with writing one through local volunteers for Score and other small business organizations, or go to your local public library and spend some time looking through books with business plans.
Make sure you understand the requirements by your state's workforce agency about continuing qualification for this program.
Resources
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