U.S. Reps. Mike Carey (R-OH) and Greg Landsman (D-OH) introduced legislation in the U.S. House of Representatives that seeks to enhance the ability of unemployed individuals to start their own businesses.
Specifically, the New Opportunities for Business Ownership and Self-Sufficiency (NO BOSS) Act would amend the Self-Employment Assistance (SEA) Program to make state participation less onerous and encouraging participation. The SEA Program is designed to encourage unemployed individuals to start their own businesses.
Unlike traditional Unemployment Compensation (UC), SEA participants can receive weekly payments while getting their small business off the ground. However, only eight states offer SEA programs for UC claimants — Delaware, Mississippi, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, and Rhode Island. Currently, Oregon and New York have the largest SEA programs, with 390 participants and 1005 participants, respectively.
The NO BOSS Act would model the federal program after the highly successful implementation in Oregon. The bill would remove the “likely to exhaust benefits” provision, which prevents many unemployed workers from participating in this program and implies that entrepreneurship should only be for those who are unlikely to find any other job.
“Small businesses are the engine of our economy, but making the leap from unemployment to self-employment is risky,” Carey said. “Americans shouldn’t be forced to choose between unemployment insurance and working on the next big idea. We’re proud to join Rep. Landsman on this bill to improve the support available to aspiring entrepreneurs.”
Also, it would clarify that a business plan and market feasibility study could serve as an alternative requirement to entrepreneurship training. In addition, the bill provides integrity guardrails to ensure those who have opted to submit a business plan and market feasibility study are meeting the required deadlines. Finally, the proposal would increase the participation cap from five to ten percent.
“This unique opportunity allows those who are unemployed to build a business with dignity,” Landsman said. “As a member of the House Small Business Committee, I believe these reforms to the program empowers entrepreneurship and could benefit many folks who have a passion but doubt they can make it a reality.”
The bill has earned support from various businesses and groups, including the Small Business & Entrepreneurship Council, Shopify, Foundation for American Innovation, the R Street Institute, Center for American Entrepreneurship, and Auctane.
“Entrepreneurship is challenging, and we know that finding the support to take the leap is often the hardest part of getting started,” Shopify Vice President of Communications and Public Affairs Alex Clark said. “This policy is a great example of how the government can come to the table to support, enable, and foster more entrepreneurship in a way that can really make a significant difference. Starting a business may have been someone’s plan C, but now is the time they can make it their plan A.”