The U.S. Department of Labor issued guidelines Thursday for state workforce agencies to create programs that would allow their statesâ€™ unemployed to collect unemployment insurance while starting their own businesses. The so-called Self-Employment Assistance programs will be funded by a $35 million grant, divided among all 50 states and D.C., and disbursed to individuals who qualify for unemployment compensation but wish to start their own companies rather than find a new job.
The programs would require interested entrepreneurs to bring their business plans to their local state-based programs for evaluation. If approved, they would receive up to 26 weeks of financial assistance equal to the amount they would have received in unemployment insurance, as well as entrepreneurship training, while they attempted to get the business running.
They couldn’t before? Does anyone really think that this process will generate more small businesses? The states get to evaluate their business plans?< /p>
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