New Opportunities for Business Ownership and Self-Sufficiency Act
Key claim: HR6431 would raise the state SEA participation cap from 5% to 10% of regular unemployment claimants, drop the “likely to exhaust benefits” eligibility screen, require weekly full-time business-startup certification, and let a state-approved business plan plus market feasibility study satisfy the self-employment assistance activities requirement.
Abstract
(HR6431 · 119th Congress) New Opportunities for Business Ownership and Self-Sufficiency Act This bill increases the percentage of individuals who may participate in a Self-Employment Assistance (SEA) program, generally expands eligibility for such programs, and modifies certain SEA program requirements. As background, an SEA program provides an individual with an SEA allowance, rather than regular unemployment compensation benefits, if such individual is (1) eligible for unemployment compensation benefits and identified as likely to exhaust such benefits, (2) participating in self-employment assistance activities which include entrepreneurial training, business counseling, and technical assistance and are approved by the state, and (3) working full-time on establishing a business and becoming self-employed. Under current law, the number of individuals participating in an SEA program may not exceed 5% of the individuals receiving regular unemployment compensation benefits in the state. The bill increases the percentage of individuals who may participate in a state SEA program to 10%, eliminates the requirement that an individual be determined likely to exhaust unemployment compensation benefits (generally expanding individual eligibility for an SEA program), and requires individuals to certify (at least weekly) that they are working full-time on establishing a business and becoming self-employed. Finally, the bill allows individuals to meet the requirement to participate in state-approved self-employment assistance activities if such activities either (1) include entrepreneurial training, business counseling, and technical assistance (permitted under current law); or (2) are performed pursuant to a state-approved business plan and market feasibility study. Latest action (2026-04-28): Received in the Senate and Read twice and referred to the Committee on Finance.
Why this matters
SEA lets UI claimants receive weekly benefits while building a business instead of job-searching, and expanding the participation cap and dropping the exhaustion screen would broaden the pool of unemployed workers who can pursue self-employment on UI. For state UI agencies, the bill adds administrative duties (weekly startup certification, review of business plans and feasibility studies) but offers a defined alternative compliance pathway. Framing is neutral: the change is an incremental expansion of an existing federal-state program rather than a new classification or benefit mechanism.