Self-employment unemployment benefits provide unemployed workers the chance for early re-employment by encouraging them to create their own small business. Under this program, the State can pay you a self-employed allowance instead of the regular unemployment benefits. Eligible workers receive allowances every week while they are getting their business started.

In general, to receive this benefit, you should be eligible for regular unemployment insurance under the State law. If you are presently out of work without your fault, find out from your state unemployment office to determine if you are eligible for a self-employment insurance benefit. You can apply if your business is incorporated and you cannot find work or if your area is affected by disaster. Self-employment benefits are the same amount as the weekly regular unemployment insurance benefits. Those who are eligible work full-time to start their business instead of looking for work.

Make sure that you contact the State Unemployment Insurance Agency immediately after you become unemployed. At the time that you are filing for a claim, ask whether a self-employment assistance program is applicable in your state if you decide that putting up your own business is indeed the right option instead of trying to look for a new job.

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