As the unemployment rate continues to rise, I have to question what is really being done to lower the number. More companies are downsizing and outsourcing jobs, while others are freezing any job openings until the economy turns around. We are currently being faced with many unemployed workers that have exhausted their unemployment compensation and being faced with even harder financial decisions. The crossroad of unemployment and future earnings sometimes presents an opportunity. Left without the security of a paycheck, available time offers the ability to look at many paths. Unknown to most, the US Federal government offers a Self-Employment Assistance program. The program was initially authorized for five years and was made permanent by Public Law 105-306 in October 1998. Simply stated in their own words:

“Self-Employment Assistance offers dislocated workers the opportunity for early re-employment. The program is designed to encourage and enable unemployed workers to create their own jobs by starting their own small businesses.”

Unfortunately, this program is voluntary and only eleven states passed enabling legislation to offer it, with 8 states actually offering it. The states that opted to offer this program include: California, Delaware, Maine, Maryland, New Jersey, New York, Oregon, and Pennsylvania. Some of these states have discontinued the program and you would need to check to see if the program is available. You still have to be eligible for unemployment insurance with the same guidelines and benefits in place for everyone else. You also have to be identified as someone who would “likely exhaust regular unemployment benefits”. Like most programs, this is not offered to everyone. If you are lucky enough to be selected to participate, it may help expedite your entrepreneurial education.

Residents in other states should contact their state officials to find out why more states are not participating in this program. Unemployment compensation, foreclosures and the stress on government programs should be a shout out to all states to initiate programs to combat the downward spiral.