New Federal Funding to Serve
Unemployed Entrepreneurs in
Your Community
Small businesses not only drive the economy and job growth,
they also provide a pathway for business owners—particularly
minorities, immigrants and the economically disadvantaged—
to join America’s middle class. Business equity is second only to
homeownership as a source of net worth. For that reason,
advancing policies that support new business formation and
low- and moderate-income entrepreneurs is a critical
component of asset-building advocacy. In the current economic
environment, these policies are even more important as
entrepreneurship is, for many unemployed workers, the best
opportunity to recover. Indeed, starting a business allows these
individuals to create their own new jobs.
The federal Self-Employment Assistance (SEA) Program allows
unemployed workers who are interested in entrepreneurship to
receive unemployment insurance benefits while they get their
businesses started and participate in training to help them
succeed. Advocating for SEA can deliver new resources to the
field through partnerships with state workforce and labor
agencies, which often contract with microenterprise
development organizations to provide training.
A Policy Guide for
Microenterprise and
Asset-Building Advocates
This brief is a step-by-step guide for the
microenterprise and asset-building fields
to use in advocating for their states to
offer new expansions of the federal SelfEmployment Assistance (SEA) Program.
It will:
Explain how the new federal
expansion of SEA works
Identify the policymakers and
advocates you should partner with
to make an effective case for SEA
Offer recommendations for next
steps based on current laws in your
state
Provide links to additional helpful
resources
Self-Employment Assistance Program: Entrepreneurship as a
Reemployment Strategy
The federal Self-Employment Assistance (SEA) Program, created in 1992, authorizes states to support
unemployed workers interested in entrepreneurship by providing training and paying benefits while they
start their businesses. In February 2012, Congress expanded the SEA Program via legislation to extend
federal unemployment benefits. On May 24, the Department of Labor (DOL) Employment and Training
Agency (ETA) sent a letter1 to state departments of labor and workforce agencies providing guidance on the
implementation of the expanded SEA Program.
The federal expansion makes SEA available to the long-term unemployed for the first time. Previously, SEA
was only available to workers collecting the first 26 weeks of regular state unemployment benefits. The
program was further limited by the requirement that each state legislature enact legislation to create a state
program. Now, states can make SEA available to people who receive Emergency Unemployment
Compensation (EUC), the federally-funded unemployment benefit extension that allows unemployed
workers to collect an additional 20 to 53 weeks of benefits.2 In addition, the mechanism by which a state can
create a SEA Program has been simplified and federal funding is available for states to start, improve or
expand a SEA Program.
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All a state must to do to offer SEA to recipients of EUC is opt into the program
Governors simply need to sign a memorandum of understanding with DOL once their agencies
have developed an implementation plan. The DOL guidance letter describes the process states
should follow.
DOL has also provided model legislation that states can pass to begin new SEA programs for
recipients of regular unemployment benefits (those paid in the first 26 weeks).
Optimally, states that do not currently offer SEA will both opt into the program for EUC recipients
and also pass the model legislation to start offering SEA to recipients of regular unemployment
benefits. Of course, your advocacy can help make this happen.
Thirty-five million dollars in federal funding is available
The federal SEA expansion provides $35 million in grants for states to start, improve or expand SEA
programs, including working in partnerships with entrepreneurship training and microenterprise
organizations.
Making these grants available to states that do not yet have SEA is intended to spur more states to
enact the program through the regular unemployment insurance system.
The DOL guidance letter informs states how to implement new law’s provisions, shares potential funding
allocations by state, provides grant application materials, and establishes June 30, 2013 as the deadline for
receiving grant applications. The grant amounts were set by a formula; the table at the end of this document
lists how much money your state can receive.
Advocating for SEA: Where to Start
1. Talk to your state legislators, governor, and state unemployment insurance and workforce
agencies.
Let them know the federal government will pay for implementation and cover most, if not
all, of the cost of training and development services.
Share DOL’s model legislation. State legislatures can pass these draft bills to participate in
various parts of the program, from the standard SEA program available under regular
unemployment insurance to the new extension.
2. Coordinate with other microenterprise and asset-building organizations.
Coordinating with networks of service providers can amplify your collective voices.
Developing a joint strategy for advocacy can be an effective way to persuade more
policymakers to support SEA.
Contact your State Microenterprise Association and local or state Asset Building Coalition to
maximize your impact.
Consider sharing resources such as email lists and media contacts, or host joint outreach
events to educate policymakers and stakeholders. Demonstrate that a variety of service
providers have the capacity and desire to deliver entrepreneurship training through SEA.
3. Enlist support from city and county policymakers and officials.
Job creation and unemployment are major issues for local governments, as well as state and
federal policymakers.
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Local governments already have established relationships with state-level decision makers.
Partnering with them can amplify your voice and help you reach the right people.
4. Reach out to the state and local Workforce Investment Boards (WIBs).
WIBs are important partners for you because they coordinate with state and local governments to
oversee the local One Stop Career Centers that provide resources to unemployed workers. SEA is
implemented through these sites.
WIBs are key stakeholders in developing workforce training strategies that meet the needs of
the local economy. Enlisting them to support a self-employment training strategy helps
make the case for SEA as an engine of job creation.
Working with WIBs will expand your capacity to develop buy-in with One Stop sites, which
is the primary conduit for SEA referrals.
5. Cultivate SEA champions within local One Stop Career Centers.
While WIBs and local governments determine policy priorities and strategies for workforce
development and reemployment training, One Stop Centers are the front lines of implementation.
These sites offer a range of services to unemployed workers and local residents who want to develop
new skills. They are the first point of contact for most potential SEA participants:
They screen potential candidates for participation in SEA and refer them to service
providers.
They offer career counseling and financial education that could complement your services.
Working closely with WIBs to implement SEA expansion could help everyone involved to
reach new clients.
6. Connect with SBA-supported training and technical assistance centers throughout your state.
Having Small Business Administration (SBA) centers as partners will make your outreach to state
officials even more compelling because DOL and SBA plan to offer some SEA resources jointly.
SBA’s Small Business Development Centers, Women’s Business Centers and SCORE
mentoring networks may participate. These entities often serve limited geographic regions
or have the capacity to help certain types of entrepreneurs (often those who have established
businesses rather than firms just getting off the ground).
You can partner with SBA sites to cross-refer clients based on various training and technical
assistance offerings available from different organizations.
7. Position yourself as a resource for entrepreneurship training.
Use DOL’s guidance as a tool to help you explain your value to policymakers and partners.
Think creatively about how your organization could contribute to SEA. DOL encourages
states to test new, innovative strategies such as targeting young unemployed workers or
seniors. Do you provide unique, specialized training for an underserved group in your state?
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Determining Grant Eligibility: Does Your State Qualify?
Grant eligibility varies by state. To determine your state’s eligibility, answer the following questions.
1. Do you live in a state that has enacted SEA and has an active program?
Delaware
Maine
New Jersey
New York
Oregon
If so, your state is eligible to apply immediately for the grants available from DOL. The sooner you
start working with state officials, the sooner money could be available.
2. Do you live in a state that has enacted SEA but does NOT have an active program?
California
Louisiana
Maryland
Pennsylvania
Washington3
If so, your state has cleared the first hurdle but is not yet eligible to apply for the grant funds. To
apply, your state must first activate its SEA program by providing the funds necessary to administer
the program. It must establish processes for One Stop Centers to screen candidates and identify
preliminary service providers and training resources for SEA participants.
For all other states, start with outreach: educate your governor, state legislators and agencies for workforce,
labor, small business and/or economic development. Share the model legislation with elected officials and
ask them to introduce it in the state legislature.
Remember, CFED can help! If you have questions about these regulations or would like help connecting to
various stakeholders, contact Katherine Lucas-Smith, Federal Policy Analyst ([email protected],
202.595.2692) or Jennifer Brooks, Director of State & Local Policy ([email protected]; 415.495.6976).
See http://wdr.doleta.gov/directives/attach/UIPL/UIPL_20_12.pdf.
The number of additional weeks available to a worker depends on the unemployment rate in his/her
state of residence. In September 2012, the number of weeks of additional benefits available through EUC is
scheduled to decrease by six weeks, or 14 to 47 weeks depending on the state. The program will expire entirely on
January 1, 2013, unless Congress reauthorizes it. Since 2008, Congress has reauthorized EUC 11 times for varying
durations. The new federal law also permits states to make SEA available to workers who are collecting an
additional 13-20 weeks of unemployment insurance under another unemployment benefits extension program,
Extended Benefits (EB). EB is jointly funded by the federal and state governments; in recent months many states
have phased out the EB program. All states are expected to do so by September 2012. For that reason, this
advocacy guide focuses only on the regular unemployment compensation system and EUC.
3 Washington currently has an active program but it will expire on July 1, 2012. The state must
reauthorize its program to be eligible for the grant funding.
1
2
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Available Self-Employment Assistance Grants
State
Alabama
Agency
Alabama Department of Industrial Relations
Alaska
Alaska Department of Labor and Workforce Development
Arizona
Arizona Department of Economic Security
Arkansas
Arkansas Department of Workforce Services
California
California Employment Development Department
Colorado
Connecticut
Delaware
Total Available
$479,840
Purpose
Establishment
or Improved
Administration
$411,291
Promotion
and
Enrollment
$68,549
$69,071
$59,204
$9,867
$711,300
$609,686
$101,614
$276,319
$236,845
$39,474
$5,388,572
$4,618,776
$769,796
Colorado Department of Labor and Employment
$562,343
$482,008
$80,335
Connecticut Department of Labor
$415,008
$355,721
$59,287
Delaware Department of Labor
$80,608
$69,093
$11,515
District of Columbia
District of Columbia, Department of Employment Services
$89,317
$76,557
$12,760
Florida
Florida Department of Economic Opportunity
$2,400,953
$2,057,960
$342,993
Georgia
Georgia Department of Labor
$1,156,906
$991,634
$165,272
Hawaii
Hawaii State Unemployment Insurance
$111,120
$95,246
$15,874
Idaho
Idaho Department of Labor
$167,546
$143,611
$23,935
Illinois
Illinois Department of Employment Security
$1,615,519
$1,384,731
$230,788
Indiana
Indiana Department of Workforce Development
$720,577
$617,637
$102,940
Iowa
Iowa Workforce Development
$242,970
$208,260
$34,710
Kansas
Kansas Department of Labor
$249,408
$213,778
$35,630
Kentucky
Kentucky Office of Employment & Training
$488,417
$418,643
$69,774
Louisiana
Louisiana Workforce Commission
$376,976
$323,122
$53,854
Maine
Maine Department of Labor
$132,233
$113,343
$18,890
Maryland
Maryland Department of Labor, Licensing and Regulation
$541,360
$464,023
$77,337
Massachusetts
Massachusetts Executive Office of Labor and Workforce Development
$632,631
$542,255
$90,376
Michigan
Michigan Department of Licensing and Regulatory Affairs
$1,178,691
$1,010,307
$168,384
Minnesota
Minnesota Department of Employment and Economic Development
$471,045
$403,753
$67,292
Mississippi
Mississippi Department of Employment Security
$356,732
$305,770
$50,962
Missouri
Missouri Department of Labor & Industrial Relations
$638,248
$547,070
$91,178
Montana
Montana Department of Labor & Industry
$85,942
$73,665
$12,277
Nebraska
Nebraska Department of Labor
$111,006
$95,148
$15,858
Nevada
Nevada Department of Employment, Training and Rehabilitation
$465,817
$399,272
$66,545
New Hampshire
New Hampshire Employment Security
$100,300
$85,971
$14,329
New Jersey
New Jersey Department of Labor & Workforce Development
$1,070,511
$917,581
$152,930
New Mexico
New Mexico Department of Workforce Solutions
$173,222
$148,476
$24,746
New York
New York State Department of Labor
$1,978,999
$1,696,285
$282,714
North Carolina
North Carolina Department of Commerce
$1,228,623
$1,053,105
$175,518
North Dakota
Job Service North Dakota
$33,347
$28,583
$4,764
Ohio
Ohio Department of Job and Family Services
$1,238,931
$1,061,941
$176,990
Oklahoma
Oklahoma Employment Security Commission
$274,350
$235,157
$39,193
Oregon
Oregon Employment Department
$468,830
$401,854
$66,976
Pennsylvania
Pennsylvania Department of Labor & Industry
$1,273,656
$1,091,705
$181,951
Puerto Rico
Puerto Rico Labor Department Administration
$504,523
$432,448
$72,075
Rhode Island
Rhode Island Department of Labor and Training
$159,734
$136,915
$22,819
South Carolina
South Carolina Department of Employment and Workforce
$548,432
$470,085
$78,347
South Dakota
South Dakota Department of Labor and Regulation
$51,445
$44,096
$7,349
Tennessee
Tennessee Department of Labor and Workforce Development
$709,202
$607,887
$101,315
Texas
Texas Workforce Commission
$2,457,874
$2,106,749
$351,125
Utah
Utah Department of Workforce Services
$218,841
$187,578
$31,263
Vermont
Vermont Department of Labor
$49,329
$42,282
$7,047
Virginia
Virginia Employment Commission
$671,010
$575,151
$95,859
Virgin Islands
U.S. Virgin Islands Department of Labor
$9,718
$8,330
$1,388
Washington
Washington Employment Security Department
$791,014
$678,012
$113,002
West Virginia
WorkForce West Virginia
$157,955
$135,390
$22,565
Wisconsin
Wisconsin Department of Workforce Development
$568,929
$487,653
$81,276
Wyoming
Wyoming Department of Workforce Services
$44,750
$38,357
$6,393
$35,000,000
$30,000,000
$5,000,000
Totals
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