WASHINGTON – The U.S. Department of Labor today announced the availability of $35 million in funds to develop, enhance and promote Self-Employment Assistance programs in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. In addition, guidance released today clarifies that states may enroll participants who are currently receiving or eligible for federally funded Emergency Unemployment Compensation and Extended Benefits.
This announcement is the latest in a series of innovative reforms to the Unemployment Insurance program made possible through the Middle Class Tax Relief and Job Creation Act of 2012, which was signed by President Obama in February.
"Self-Employment Assistance has proven to be a valuable tool in helping many unemployed Americans realize the dream of business ownership," said Secretary of Labor Hilda L. Solis. "These grants will help states improve and expand the program while strengthening the economy and creating new jobs as more startups launch and grow." Participants in these voluntary programs are provided with financial assistance equal to their Unemployment Insurance benefits while they receive important entrepreneurial training and resources to help launch their own businesses. In order to allow participants to devote full-time attention to creating new businesses that have the potential to create additional jobs, state work search requirements are waived.
Grant money can be used by states to implement a new Self-Employment Assistance program or improve the administration of current programs, as well as to promote programs and enroll eligible participants. In order to receive federal funding, states' UI laws must meet the Labor Department's requirements. Five states (Delaware, Maine, New Jersey, New York and Oregon) have active Self-Employment Assistance programs and are eligible now to apply for these grant funds. The other states have until June 30, 2013, to submit complete applications to the department.
The Labor Department will work with interested states to assist them in developing legislation as needed, and to implement Self-Employment Assistance programs. The department also will work with states on outreach strategies to identify potential entrepreneurs who are good candidates to start their own businesses. Additionally, the department is partnering with the Small Business Administration to provide technical assistance to states and to ensure that SBA resources are leveraged as states design Self-Employment Assistance programs.
For more information about Self-Employment Assistance, read the Unemployment Insurance program letter at http://s.dol.gov/S5.
Editor's note: A breakdown of the grant funds available follows this news release.
Available Self-Employment Assistance Grants Purpose State Agency Total Available Establishment or Improved Administration Promotion and Enrollment Alabama Alabama Department of Industrial Relations $479,840 $411,291 $68,549 Alaska Alaska Department of Labor and Workforce Development $69,071 $59,204 $9,867 Arizona Arizona Department of Economic Security $711,300 $609,686 $101,614 Arkansas Arkansas Department of Workforce Services $276,319 $236,845 $39,474 California California Employment Development Department $5,388,572 $4,618,776 $769,796 Colorado Colorado Department of Labor and Employment $562,343 $482,008 $80,335 Connecticut Connecticut Department of Labor $415,008 $355,721 $59,287 Delaware 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 Totals $35,000,000 $30,000,000 $5,000,000
