Back to Federal guidance
2012 self-employment assistance program guidance
Summary ETA explained how the 2012 law expanded state self-employment assistance from regular unemployment compensation to Extended Benefits and Emergency Unemployment Compensation recipients. It set different eligibility and operating rules for those programs, described grants and reporting requirements, and provided model language and forms in ten attachments. The existing regular UC SEA program remained unchanged apart from new reporting requirements.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 20-12
Date issued
May 24, 2012
Status
Active
ETA’s advisory listing marks this letter Active as of 2026-10-24, and the PDF lists the expiration date as Continuing. The 2012 grant application and obligation periods have deadlines; the letter does not give the Extended Benefits SEA authority an end date.
Status last verified October 24, 2026
Apply this to your situation
This page explains the general guidance. Ask about your specific situation and see what current federal labor law says, with citations.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
UIPL 20-12 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_acc.pdf)
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION UI
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
OUI/DL/DUIO
U.S. DEPARTMENT OF LABOR
DATE
Washington, D.C. 20210 May 24, 2012
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 20-12
TO: STATE WORKFORCE AGENCIES
FROM: JANE OATES /s/
Assistant Secretary
SUBJECT: The Middle Class Tax Relief and Job Creation Act of 2012 (Public Law (P.L.)
112-96) – Provisions on Self-Employment Assistance Programs
1. Purpose. To advise state agencies of the provisions in the Middle Class Tax Relief and Job
Creation Act of 2012, (the Act) governing Self-Employment Assistance (SEA) programs and
offering assistance to state agencies that operate such programs.
2. References.
• Subtitle E of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96);
• Section 3304(a)(4)(F) of the Federal Unemployment Tax Act (FUTA);
• Section 3306(t), FUTA;
• Section 303(a)(5) of the Social Security Act (SSA);
• Section 208 of the Federal-State Extended Unemployment Compensation Act of 1970
(P.L. 91-373);
• North American Free Trade Agreement (NAFTA) Implementation Act (P.L. 103-182);
• Noncitizen Benefit Clarification and Other Technical Amendments Act of 1998 (P.L.
105-306);
• Section 4001 of Title IV of the Supplemental Appropriations Act, 2008 (P.L. 110-252);
• Notice of Listening Sessions on Implementation of Unemployment Insurance Provisions
of the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112–96), 77 Fed. Reg.
16074 (March 19, 2012);
• Section 134(d)(4)(D)(vi) of the Workforce Investment Act of 1998;
• Training and Employment Guidance Letter (TEGL) No. 12-10 (November 15, 2010)
Supporting Entrepreneurial and Self-Employment Training through the Workforce
Investment System;
• Unemployment Insurance Program Letter (UIPL) No. 14-94, North American Free Trade
Agreement Implementation Act (P.L. 103-182) - Provisions Affecting the Federal-State
Unemployment Compensation (UC) Program relating to Self-Employment Assistance;
• UIPL No. 11-99, Permanent Authorization of the Self-Employment Assistance Program;
• UIPL No. 12-01, Outsourcing of Unemployment Compensation Administrative
Functions, and UIPL No. 12-01, Change 1;
RESCISSIONS EXPIRATION DATE
None Continuing
• UIPL No. 23-08, Supplemental Appropriation Act, 2008, Title IV—Emergency
Unemployment Compensation, and UIPL No. 23-08, Changes 1, 2, 3, 4, 5, and 6;
• UIPL No. 04-10, Extension of Temporary Provisions—Emergency Unemployment
Compensation, 2008, Federal Additional Compensation, and Extended Benefits, and
UIPL No. 04-10, Changes 1, 2, 3, 4, 5, 6, 7, 8, and 9; and
• ET Handbook No. 336, 18th Edition (December 2009), “Unemployment Insurance (UI)
State Quality Service Plan -Planning and Reporting Guidelines.”
3. Background. On February 22, 2012, the President signed into law the Middle Class Tax
Relief and Job Creation Act of 2012 (P.L. 112-96). In recognition of the importance of
supporting entrepreneurship, Subtitle E of P.L. 112-96 (hereinafter referred to as Subtitle E)
amended Federal Unemployment Compensation (UC) law to extend the SEA program to the
long-term unemployed receiving benefits under the Emergency Unemployment Compensation
(EUC) and Extended Benefits (EB) programs. This is a further expansion of the SEA program,
which began in 1993.
The “withdrawal standard” of Section 3304(a)(4), FUTA, and Section 303(a)(5), SSA, limits
withdrawals (with specified exceptions not relevant here) from a state's unemployment fund for
payments of “compensation.” The term “compensation” is defined in Section 3306(h), FUTA, as
“cash benefits payable to individuals with respect to their unemployment.” Because payment
must be made with respect to “unemployment,” prior to 1993, the withdrawal standard
prohibited states from using unemployment funds to help individuals establish themselves in
self-employment.
The North American Free Trade Agreement (NAFTA), enacted on December 8, 1993, included a
provision allowing states to operate SEA programs over a five-year period that would permit
certain individuals to receive payments from the state's unemployment fund in lieu of regular
compensation to help them establish businesses. On October 28, 1998, the Noncitizen Benefit
Clarification and Other Technical Amendments Act of 1998, (P.L. 105-306) permanently
authorized the SEA program.
Participation in a state SEA program is voluntary, on the part of both the state and the
unemployed individual. These programs provide unemployed individuals financial support
while they access the resources, information, and training they need to get a business off the
ground. States work with the individual participants to determine what training they need to help
them succeed in the program. Individuals enrolled in an SEA program receive a weekly
allowance in the same amount as the individual’s regular UC weekly benefit amount. The
definition of an SEA program under section 3306(t), FUTA requires an individual to be:
a. Eligible to receive regular UC under the state’s law, except that the individuals are not
required to meet the state’s requirements related to:
• Availability for work;
• Active work search;
• Refusal to accept work; and
• Disqualifying income with respect to income earned from self-employment;
b. Identified under a state worker profiling system as being likely to exhaust regular UC;
c. Participating in self-employment activities including entrepreneurial training, business
counseling, and technical assistance that are approved by the state UC agency; and
d. Actively engaged on a full-time basis in activities (which may include training) relating
to the establishment of a business and becoming self-employed.
Section 3306(t), FUTA, also provides that the aggregate number of individuals receiving SEA
allowances may at no time exceed five percent of the number of individuals receiving regular
UC. In addition, the SEA program may not result in any cost to the Unemployment Trust Fund
(UTF) in excess of the cost that would be incurred by the state and charged to the UTF had the
individual(s) not participated in the SEA program.
The “regular” SEA program remains unchanged except that, as explained in section 10 below,
there are new reporting requirements. See the summary of changes below for the differences
between the “regular” SEA program and the SEA program for EB and/or EUC authorized under
P.L. 112-96.
4. Summary of Changes.
A. Self-Employment Assistance Program for Individuals Eligible for EB. Before the
enactment of P.L. 112-96, Federal law limited SEA participation to individuals who were
eligible to receive “regular compensation.” Subtitle E amended the Federal-State
Extended Unemployment Compensation Act of 1970 (EUCA) by adding section 208
providing permissive authority for states to establish SEA programs for individuals
eligible to receive EB for weeks of unemployment beginning after the date of enactment.
Section 208, EUCA, provides that states operating SEA programs for individuals eligible
for EB must follow the definition of an SEA program in section 3306(t), FUTA, except
that:
1) References to “regular unemployment compensation” under state law in section
3306(t), FUTA, are deemed to refer instead to “extended compensation” under
Title II of EUCA;
2) The requirement that participants must have been identified through a state's
profiling system as likely to exhaust regular unemployment benefits does not
apply;
3) References to “entrepreneurial training, business counseling, and technical
assistance” in section 3306(t)(3)(C)(i), FUTA, shall be deemed instead to mean
“entrepreneurial training that the state or non-profit organizations may provide in
coordination with programs of training offered [through the workforce investment
system or] by the [Small Business Administration] SBA, which may include
business counseling, mentorship for participants, access to small business
development resources, and technical assistance;”
4) The five percent limitation on the aggregate number of individuals receiving an
SEA allowance in section 3306(t)(4) is, instead, a one percent limitation; and
5) The requirement that the program not result in any cost to the UTF does not
apply.
However, section 208(c), EUCA, provides that no individual may be approved for
participation in SEA, in lieu of EB, unless the state UC agency has a reasonable
expectation that the individual has remaining entitlement to at least 13 weeks of EB.
P.L. 112-96 amended section 4001(e), Supplemental Appropriations Act, 2008 governing
EUC, to mandate that effective March 4, 2012, states must pay EUC prior to EB. As a
result, if a state is in an EB period and an individual had 26 weeks of regular UC
entitlement, an individual must begin participation in the SEA program during the first
week of EB eligibility. Individuals in an EB state with fewer than 26 weeks of regular
UC entitlement may not participate in this SEA program as they would have fewer than
13 weeks of EB entitlement remaining. This is because the EB entitlement is the lesser
of 50 percent of the regular UC entitlement or 13 times the regular UC weekly benefit
amount. However, if a state is in a high unemployment period (HUP) (which entitles
individuals to receive up to 20 weeks of EB), individuals with 26 weeks of regular UC
entitlement must begin participation no later than the eighth week of their EB claim in
order to have 13 weeks of EB entitlement remaining. Individuals in a HUP state with
fewer than 26 weeks of regular UC entitlement must begin participation early in their EB
claim in order to meet the 13 remaining weeks of EB entitlement requirement.
Section 208(d), EUCA, provides that individuals may cease participation in this SEA
program at any time and receive the remaining balance of EB if they meet all eligibility
requirements. Amounts of SEA allowances received by an individual must be deducted
from the remaining amounts of EB available to the individual.
Section 2181 of the Act amended EUCA (P.L. 91-373) by adding section 208 and
amended section 4001 of the Supplemental Appropriations Act, 2008 (P.L. 110-252)
(EUC). The amendment provided for a “combined eligibility limit” that allows
individuals to receive up to 26 weeks of SEA allowance payments in lieu of EUC, EB or
combined EUC/EB eligibility. The “carryover rule” permits an individual who is
receiving SEA in lieu of EB to continue to receive SEA in lieu of EUC when s/he
exhausts his/her EB eligibility limit, and vice versa. This combined eligibility limit will
only become a factor if a state provides for both EB SEA and EUC SEA. The practical
effect of this rule is currently limited because states have been paying EUC before EB
and individuals have not yet had the opportunity to receive EB SEA.
Lastly, since EB is paid under state law, states wishing to pay EB SEA must enact new
state legislation to provide for the payment of SEA allowances to individuals eligible for
EB, unless a state has authority to do so by regulation or Executive Order. As required
by the statute, we have developed model legislation, which is discussed further in section
8 below.
B. Self-Employment Assistance Program for Individuals Eligible for EUC. As noted
above, before the enactment of P.L. 112-96, Federal law limited SEA participation to
individuals who were eligible to receive “regular compensation.” Subtitle E amended
section 4001 of the Supplemental Appropriations Act, 2008 (P.L. 110-252) (the EUC
law) by adding a new subsection (j) which permits states to establish SEA programs for
individuals eligible for EUC. If a state elects to do so, the state would operate this SEA
program through an addendum to its agreement under section 4001(a) of the
Supplemental Appropriations Act, 2008. No state legislation is required to operate an
EUC SEA program. Any state may operate an EUC SEA program conditioned on the
state amending their section 40001(a) EUC agreement.
The new subsection (j) provides that in operating SEA programs for individuals eligible
for EUC, states must follow the definition in section 3306(t), FUTA, except that:
1) All references to “regular unemployment compensation” under state law in
section 3306(t), FUTA, are deemed to refer instead to “emergency unemployment
compensation” under Title IV of the Supplemental Appropriations Act, 2008 and
also, like EB except that;
2) The requirement that participants must have been identified through a state's
profiling system as likely to exhaust regular unemployment benefits does not
apply;
3) References to “entrepreneurial training, business counseling, and technical
assistance” in section 3306(t)(3)(C)(i), FUTA, shall be deemed instead to mean
“entrepreneurial training that the state or non-profit organizations may provide in
coordination with programs of training offered by the SBA, which may include
business counseling, mentorship for participants, access to small business
development resources, and technical assistance”;
4) The five percent limitation on the aggregate number of individuals receiving an
SEA allowance in section 3306(t)(4) is instead a one percent limitation; and
5) The requirement that the program not result in any cost to the UTF does not
apply.
Note: The number of claimants participating in an EUC SEA program in a state may
include interstate claimants residing in that state if the state of residence is operating an
EUC SEA program, even though the “paying state” may not be operating an EUC SEA
program. For example, an individual is claiming against State A, which does not have an
EUC SEA program, but lives in State B, which does. State B may permit the individual,
if otherwise eligible (including the “one percent” limitation), to participate in its SEA
program, while collecting benefits from State A. As an EUC SEA participant, the
individual would not be subject to the requirements for availability for work, active
search for work, or refusal to accept work. To optimize the success of these EUC SEA
programs, the Department strongly encourages states to coordinate efforts to facilitate
and allow such EUC interstate claimants to be able to participate in these programs, if
otherwise eligible. Further, the state agrees to honor interstate claims determinations of
eligibility for enrollment in EUC SEA programs from agent states that have EUC SEA
programs.
However, as with EB SEA, no individual may be approved for participation in SEA in
lieu of EUC unless the state UC agency has a reasonable expectation that the individual
has remaining entitlement to at least 13 weeks of EB and/or EUC.
Also, like with EB SEA, individuals may cease participation in this SEA program at any
time and receive the remaining balance of EUC if they meet all eligibility requirements.
As described above, the new section 4001(j) provides for a “combined eligibility limit”
that allows individuals to receive up to 26 weeks of SEA allowance payments in lieu of
EUC, EB or combined EUC/EB eligibility. The “carryover rule” permits an individual
who is receiving SEA in lieu of EUC to continue to receive SEA in lieu of EB when s/he
exhausts his/her EUC eligibility limit, and vice versa. This combined eligibility limit will
only become a factor if a state provides for both “EB” SEA and “EUC” SEA. In addition,
the practical effect of this rule is limited because states have generally been paying EUC
before EB and individuals have not yet had the opportunity to receive EUC SEA.
5. Collaboration with Service Providers. Implementing a successful SEA program requires
collaboration with entrepreneurial training providers and other service providers to support new
entrepreneurs. The U.S. Department of Labor (Department) recommends that states UC
agencies actively engage with other workforce system partners at the state level, with partners in
the One-Stop Career Centers, with the service providers described in section 6 operating under
the auspices of the SBA, and with local and community-based organizations supporting new
entrepreneurs. States are strongly encouraged to work with SBA’s network of staff and service
providers to determine the most effective ways to integrate these services in a comprehensive
plan for serving SEA participants and supporting their success as entrepreneurs.
One-Stop Career Centers can also play a key role in supporting entrepreneurship including
engaging with local, regional, and state partners to develop an entrepreneurial environment.
One-Stop Center staff can assist in developing strategies to leverage workforce system resources
to identify and support potential entrepreneurs. Information about opportunities for self-
employment and entrepreneurship is available to One-Stop customers to assess whether self-
employment is a good option for them as a reemployment strategy. One-Stop customers are
provided information on the range of entrepreneurship resources and strategies to help small
business owners grow their businesses such as developing growth strategies to enable new job
creation.
The Department encourages state UC agencies to enter into agreements or have memoranda of
understanding (MOU) with appropriate partners and service providers collaborating to
administer the SEA program. This ensures that the necessary partners commit to providing self-
employment services. In addition, states in which the UC partner has entered into an agreement
with One-Stop Career Centers to provide SEA services and/or training must get a commitment of
staff to perform the necessary tasks. The agreement or MOU should contain:
• Names of all parties to the agreement;
• A brief description of the collaborative process jointly developed;
• Identification of those who will provide the specific services;
• Description(s) of how feedback will be provided; and
• Descriptions(s) of the roles of the service providers.
6. Resources to Support Entrepreneurship Training. Section 2183(e) requires the Secretary
of Labor (Secretary) to use resources available through the Department and to coordinate with
the SBA “to ensure that adequate funding is reserved and made available for the provision of
entrepreneurial training to individuals participating in” SEA programs. The Department intends
to collaborate with SBA to provide a full array of technical assistance and tools to support state
implementation of a robust SEA program. Below is a sample of some of the available resources
that states should consider including in their programs. In addition to these resources, states can
expect to receive additional guidance on how to effectively connect services available through
the workforce system and the SBA network of services for the benefit of SEA participants,
including outreach materials and an SBA entrepreneurship “tool kit” that can be offered to
potential participants.
a. Entrepreneurship Training Using Workforce System Resources. The Department
has actively encouraged consideration of the use of resources within the public
workforce system, including Individual Training Accounts available under the
Workforce Investment Act of 1998, to support entrepreneurship training as an
important alternative to traditional training, particularly in a slow economy. There is
a range of activities allowable under WIA that promotes the success of small
businesses and entrepreneurship. WIA funds may be used for training for small
business owners and new entrepreneurs, which can range from general business
courses to specific courses on such topics as how to address legal and personnel
issues. WIA funds may also be used for skills training and to pay costs associated
with obtaining a skill or occupational credential that demonstrates the expertise of the
entrepreneur or small business owner. However, given limited resources within the
workforce system, it is critical for states and Local Workforce Investment Boards to
leverage resources from a wide array of entrepreneurship organizations and the
resources provided through the SBA. TEGL No. 12-10 (published November 15,
2010) provides a detailed discussion about use of workforce system resources for this
purpose. Also, see TEGL No. 12-10 for guidelines/information on how WIA
performance measures relate to these SEA activities.
b. SBA Resources. The SBA funds a robust portfolio of resources for prospective
entrepreneurs and small business owners. SBA counsels and trains over 1 million
clients annually as they start, sustain and grow their small businesses through its
online training and vast resource partner network. SBA’s network reaches into
communities across America: More than 18,000 business counselors, mentors and
trainers available through over 100 Small Business Development Centers, 110
Womens’ Business Centers and 364 SCORE chapters. Resource partner business
experts represent a vast network of industry-specific mentors who come from diverse
communities across America. They provide face-to-face and online counseling,
training and mentoring to help small businesses develop strategic plans, conduct
market studies, implement new technologies, access needed capital, and much more.
Full information about all of these programs is available at the SBA’s Web site at
http:/www.sba.gov and individuals can find the counselors in their community by
entering their zip code at www.sba.gov/direct. States are strongly encouraged to
reach out to SBA District Offices as discussed below to coordinate plans for
developing an SEA program.
1) SBA District and Regional Offices. SBA’s network of 68 district and 10 regional
offices are the point of delivery for most SBA programs and services. They
work to accomplish the SBA mission by providing quality service to the small
business community; and work with SBA resources partners and intermediaries
to accomplish the SBA mission. An SEA participant can find the closest SBA
District Office by going to: http://www.sba.gov/about-offices-list/3
2) Small Business Development Centers (SBDCs). SBDCs provide free or low-cost
training and technical assistance to current or prospective business owners.
Located in every state, SBDCs are usually affiliated with a higher-education
establishment such as a university, college, or business school. SBDCs are
funded by grants from the SBA and matching funds. There are 63 SBDCs with
more than 1,000 SBDC service centers in the 50 states and insular territories. In
2011, SBDCs helped small businesses leverage over $3.6 billion in capital
infusion.
3) SCORE, “For the Life of Your Business.” SCORE, a partner of the SBA, is a
nonprofit association dedicated to educating entrepreneurs and to the formation,
growth, and success of small businesses nationwide. It is comprised of over
13,000 volunteer business counselors who provide mentorship and share real-
world ethically sound business practices to help entrepreneurs and small business
owners at various stages in their business lifecycle. With nearly 370 community
based chapters and an award winning online advise and training website, SCORE
has served nearly 1.6 million entrepreneurs since 2009.
4) Women’s Business Centers (WBCs). WBCs represent a national network of 110
educational centers. Through these centers, SBA provides women entrepreneurs
with face-to-face counseling, training, and assistance to help them develop
strategic plans, conduct market studies, implement new technologies, and access
capital. These centers have trained and counseled more than 160,000 women,
many of them in underserved and economically disadvantaged communities and
are, for the first time, in every state in the continental U.S.
5) Veterans Business Outreach Centers (VBOCs). The Veterans Business Outreach
Centers (VBOP) provide entrepreneurial development services such as business
training, counseling and mentoring, and referrals for eligible veterans owning or
considering starting a small business. The SBA has 16 organizations across the
country participating in this cooperative agreement and serving as VBOCs.
6) Small Business Training Network. SBA now offers on-line training courses
covering a number of business topics that can be found at
http://www.sba.gov/category/navigation-structure/counseling-training.
SBA online training courses are free, self-paced, and targeted to the specific needs
of small business owners. Planning assessment tools and other digital tools allow
users to explore entrepreneurship and connect with the right solution to fit their
individual needs. Some of the existing courses include:
• Starting a Business
• Managing a Business
• Financing a Business
• Contracting
7) Financing. SBA provides a number of financial assistance programs for small
businesses that have been specifically designed to meet key financing needs,
including debt financing, surety bonds, and equity financing. Below provides a
number of the financial assistance programs available through SBA. More
information about SBA financing can be found at
http://www.sba.gov/financialassistance/borrowers/role/index.html.
a) Guaranteed Loan Programs (Debt Financing). SBA does not make
direct loans to small businesses. Rather, SBA sets the guidelines for
loans, which are then made by its partners (lenders, community
development organizations, and microlending institutions). The SBA
guarantees that these loans will be repaid, thus eliminating some of the
risk to the lending partners. So when a business applies for an SBA loan,
it is actually applying for a commercial loan, structured according to
SBA requirements with an SBA guaranty. SBA-guaranteed loans may
not be made to a small business if the borrower has access to other
financing on reasonable terms.
b) 7(a) Loan Program. The 7(a) Loan Program includes financial help for
businesses with special requirements. For example, funds are available
for loans to businesses that handle exports to foreign countries,
businesses that operate in rural areas, and for other very specific
purposes.
c) CDC/504 Loan Program. The SBA 504 Loan program is a powerful
economic development loan program that offers small businesses another
avenue for business financing, while promoting business growth, and job
creation. This program is a proven success and win-win-win for the
small business, the community and participating lenders. The 504 Loan
Program provides approved small businesses with long-term, fixed-rate
financing used to acquire fixed assets for expansion or modernization.
504 loans are made available through Certified Development Companies
(CDCs), SBA's community based partners for providing 504 Loans.
d) Microloan Program. The Microloan Program provides small, short-term
loans to small business concerns and certain types of not-for-profit child-
care centers. The SBA makes funds available to specially designated
intermediary lenders, which are nonprofit community-based
organizations with experience in lending as well as management and
technical assistance. These intermediaries make loans to eligible
borrowers. The maximum loan amount is $50,000, but the average
microloan is about $13,000.
e) Bonding Program (Surety Bonds). SBA’s Surety Bond Guarantee
(SBG) Program helps small business contractors who cannot obtain
surety bonds through regular commercial channels. A surety bond is a
three-party instrument between a surety (someone who agrees to be
responsible for the debt or obligation of another), a contractor and a
project owner. The agreement binds the contractor to comply with the
terms and conditions of a contract. If the contractor is unable to
successfully perform the contract, the surety assumes the contractor's
responsibilities and ensures that the project is completed. Through the
SBG Program, the SBA makes an agreement with a surety guaranteeing
that SBA will assume a percentage of loss in the event the contractor
should breach the terms of the contract. The SBA's guarantee gives
sureties an incentive to provide bonding for eligible contractors, thereby
strengthening a contractor's ability to obtain bonding and greater access
to contracting opportunities for small businesses. SBA can guarantee
bonds for contracts up to $5 million, covering bid, performance and
payment bonds, and in some cases up to $10 million for certain
contracts.
f) Venture Capital Program (Equity Financing). SBA’s Small Business
Investment Company (SBIC) Program is a public-private investment
partnership through which the SBA provides venture capital to small
businesses. SBICs are privately owned and managed investment funds,
licensed and regulated by SBA. With the private capital they raise and
with funds borrowed at favorable rates through SBA, SBICs provide
financing in the form of debt or equity to small businesses. SBICs are
similar to venture capital, private equity and private debt funds in terms
of how they operate and their ultimate objective to generate high returns
for their investors. However, unlike those funds, SBICs limit their
investments to qualified small business concerns as defined by SBA
regulations.
7. Grants for SEA Programs. Section 2182 of the Act gives the Secretary authority to award
grants to states to develop, enhance, and promote SEA programs in their state.
Grants may be awarded to states for:
• improved administration of existing SEA programs that had been established before the
date of enactment of the Act;
• development, implementation, and administration of new SEA programs established after
the date of enactment of the Act; and
• development, implementation, and administration of SEA programs for individuals who
are eligible to receive EB or EUC.
In addition to submitting applications for funding to do one or more of the activities above,
additional funds are available to promote SEA programs and enroll unemployed individuals in
such programs. These additional funds are available only for those states that have been
approved to receive a grant for the activities listed above. States are strongly encouraged to
apply for these additional funds at the same time they apply for implementation and
administration grants.
These grants provide a unique opportunity for states to consider innovative strategies for
targeting different types of unemployment claimants who may have greater potential to be
successful in starting new businesses. Traditionally, dislocated workers with years of experience
in a particular field have been considered as potential SEA participants. More recently, self
employment has been seen as a reemployment strategy for the long term unemployed. Today,
young adults continue to experience high unemployment. States are encouraged to also consider
focusing on young adults as a target for promoting SEA as a reemployment option. Many young
adults are technology savvy, highly experienced in the use of social media, and are frequently
more open to new and creative experiences – all factors that are valuable for someone starting a
new business in today’s economy.
The Act provides for a total of $35 million for SEA grants (see Attachment 2). Of this amount,
$30 million will be available for implementation and improved administration of the SEA
program. The remaining $5 million is available for the promotion of the SEA program and
enrollment of individuals into the program, which the Department believes is important to the
success of this program. Under section 2182(c) of the Act, each state is to receive an allotment
from the total funds “based upon the percentage of unemployed individuals in the state relative
to the percentage of unemployed individuals in all States.” The Department interprets this to
mean that each state should receive a share of the total equal to its share of US total
unemployment for the 12-month period ending February 2012. This is consistent with the way
unemployment data is used for allocating funds for other ETA programs. If a state has a balance
of funds remaining in either grant after completion of the grant activities, the state may request a
redirection of these funds to the other grant to carry out functions permitted under the agreement.
8. Application Process. For a state to receive funds under Section 2182 of the Act, it must
submit a complete application to the Department in accordance with the instructions provided
below. To be considered complete, the application must include a narrative description of the
proposed activities to be undertaken using these funds, including:
• a project plan with a detailed timeline of activities;
• identified milestones;
• actions to be taken to secure high-quality training opportunities for SEA
participants;
• projected goals, outcomes, and products;
• a project budget that indicates other funding, if any, (source and amount) that the
state plans to use for the grant activities; and
• if applicable, a copy of the law, regulation, or executive order reflecting the
changes to state law provisions, including EB provisions under EUCA, as
amended.
Examples of allowable activities to be funded include, but are not limited to, automation and
programming costs, staffing, advertisements and promotional materials, curriculum
development, and entrepreneurship training. Assurances that the state will provide the data
required in ET Handbook No. 336, 18th Edition (December 2009) (State Quality Service Plan
(SQSP)) must also be included (See Attachment 9).
The new SEA allowances may be paid under the EB program, which all states’ laws contain as a
requirement under FUTA and which follows the payment of regular compensation under the
state regular UC program. SEA allowances may also be paid under the EUC program, which
also follows the payment of regular UC under the state program. Therefore, any state that is not
certified under section 3304, FUTA, or eligible for the administrative grants under section
303(a), SSA, is not eligible for these grants.
The Department will begin accepting applications upon the issuance of this guidance, although
states are encouraged to take sufficient time to form the necessary partnerships, particularly with
state and local workforce system partners and with Small Business Development Centers and
other SBA service providers, and to develop their applications thoroughly. The Department will
only consider complete applications; incomplete applications will be returned as denied. If an
application is incomplete or has been denied, a state may submit a subsequent application for
consideration by the Secretary. Although the statute allows that applications may be filed
through December 31, 2013, the Department has no authority to obligate the SEA grant funds
appropriated by the statute beyond the end of the fiscal year ending September 30, 2013.
Accordingly, the Department will only accept applications postmarked on or before June 30,
2013, to ensure that both Departments, Labor and Treasury, have enough time to fulfill their
responsibilities to review and approve grant applications, and to assure the timely award and
funding of grants.
The Department will approve or deny applications within 30 days of receipt. The 30-day period
begins on the day following actual receipt of a complete application. Upon receipt of a complete
application submitted in accordance with this guidance, the application will be reviewed. The
applicant state will be notified whether its application has been approved. If it is approved, the
Secretary of Treasury will transfer the amount of the approved funds within seven days of receipt
of the Department’s certification. If the application is denied, the Department will provide
technical assistance to the state to support submission of a successful application.
Each application must contain the name, telephone number, and e-mail address of the state
administrator who is to be notified of approval of the application. Applications must also include
the name, telephone number, and e-mail address of the individual who can respond to questions
about the SEA application and management of the program.
SEA applications are to be signed by the state agency administrator and addressed to:
Gay M. Gilbert
Administrator
Office of Unemployment Insurance
200 Constitution Ave, N.W. Room S-4524
Washington, D.C. 20210
States are strongly encouraged to submit applications by fax or email (with PDF attachments),
followed by a hard copy to the address above. Delivery may also be made by the U.S. Postal
Service or private companies such as FedEx or UPS. States may fax applications to 202-693-
3526 to the attention of the Division of Unemployment Insurance Operations. Email
submissions should be sent to the following email address: [email protected]. Copies
should be provided to the appropriate Regional Office. For purposes of determining date of
receipt, the date the application is received in the National Office shall be used. Applications
sent only via the U.S. Postal Service may be delayed due to security precautions with mail
coming into the Department.
The format and instructions for preparing the SEA funding applications are provided in the
attachments to this UIPL. All pages in the state’s proposal must be numbered. Included are:
1) Attachment 3 - Self-Employment Assistance (SEA) Funding Application Outline;
2) Attachment 4 - Self-Employment Assistance (SEA) Cover Page; and
3) Attachment 5 - Implementing and Operating Instructions for Administering Self-
Employment Assistance Programs for Emergency Unemployment Compensation (EUC).
9. Technical Assistance. Subsection 2183(a)(2) of the Act requires the Department to “provide
technical assistance and guidance in establishing, improving, and administering such programs.”
Accordingly, the Department is developing a technical assistance strategy that will include
webinars, additional guidance, and a collection of successful practices to help states implement
SEA programs.
A webinar about SEA and related reporting requirements will be conducted upon release of this
guidance. Other technical assistance will include SEA information, model legislative language
(as discussed in Section 10), tools and outreach materials that will be shared through the UI
Community of Practice Web site at http://ui.workforce3one.org.
10. Model Legislation. Subsection 2183(c) of the Act requires the Department to develop
model legislation that may be used by a state to enact an SEA program and which will allow
flexibility for states and participating individuals and ensure accountability and program
integrity. In the development of such language, the Department was required to consult with
employers, labor organizations, state workforce agencies, and other program experts. As
provided by the Notice of Listening Sessions published at 77 Fed. Reg. 16074, consultations
occurred on March 19 and 20, 2012. During these listening sessions, the provisions of Subtitle
E, including anticipated reporting requirements, were discussed and comments and suggestions
from stakeholders and program experts were solicited. Transcripts from the March 19th listening
session are available at https://www.workforce3one.org/view/2001208245173949276/info. A
transcription of the March 20th listening session is available at
https://www.workforce3one.org/view/2001208348041396009/info. Model legislative language
for both the regular SEA program and the EB SEA program is found in attachments 7 and 8 of
this UIPL. The Department plans to provide technical assistance to states through webinars.
11. Staffing Guidelines. Social Security Act, section 303(a)(1) conditions a state’s receipt of a
UC administrative grant upon the state law providing for “…[s]uch methods of administration
(including after January 1, 1940, methods relating to the establishment and maintenance of
personnel standards on a merit basis…) as are found by the Secretary of Labor to be reasonably
calculated to insure full payment of unemployment compensation when due.” The Department
continues to require that “inherently governmental” functions be performed by merit staffed state
government personnel. (See UIPL No. 12-01, Outsourcing of Unemployment Compensation
Administrative Functions, and Change 1 to that UIPL.)
12. Reporting Requirements. The current required reporting for the SEA program has not
changed. However, as a result of the new Federal requirements for SEA, the Act has
necessitated new collection of data documenting SEA activities and outcomes for participants.
Attachment 9 to this UIPL contains the reporting instructions for the new ETA 9161, the form
states will use to report aggregate SEA program activity and outcomes. This new report was
recently approved (OMB No. 1205-0490) and will be submitted, on a quarterly basis, through the
current electronic reporting system that states use to submit virtually all UI required reports. The
report is projected to be available in the reporting system by mid-July, 2012, and the first report,
for activity during the second calendar quarter of 2012, will be due August 1, 2012.
As noted above, Attachment 9 shows the reporting instruments and instructions for the approved
collection of data for any state that is operating an SEA program. Note that this collection also
applies to those states that are currently offering SEA for claimants in the regular UC program as
well as states that offer SEA to claimants in the EB or EUC program. The reports are program-
specific; states must record SEA activity for claimants based on the program in which the
claimants would have been drawing benefits had they not enrolled in SEA. Questions
concerning these reports should be directed to the appropriate Regional Office.
13. Evaluation of SEA Programs. Subsection 2183(b) of the Act requires the Secretary of
Labor to report to Congress on the effectiveness of SEA programs no later than 5 years after the
date of enactment—February 22, 2017. Information required to complete the report to Congress
will be collected from the states by a survey or other method as deemed adequate by the
Department. States receiving grants as described in Section 7 above will be required to
participate fully in this national evaluation. The evaluation report will include:
1) An analysis of the implementation and operation of new and existing SEA programs;
2) An evaluation of the economic outcomes for individuals who participated in an SEA
program as compared to individuals who received UC and did not participate in an
SEA program and who are close comparisons in terms of previous employment
histories, education, gender, age, race/ethnicity, and geographical location. The
economic outcomes should include employment status, income, and duration of
receipt of UC or SEA; and
3) An evaluation of the state of the businesses started by individuals who participated in
an SEA program, including:
a. Information regarding the type of businesses established;
b. The sustainability of the businesses;
c. The total income collected by the businesses;
d. The total number of individuals employed through such businesses; and
e. The estimated Federal and state tax revenue collected from such businesses and
their employees.
At an appropriate time, the Department will submit an Information Collection Request (IRC) to
the Office of Management and Budget (OMB) for this collection. The Department notes that a
Federal agency cannot conduct or sponsor a collection of information unless it is approved by
OMB under the Paperwork Reduction Act of 1995, and displays a currently valid OMB control
number, and the public is not required to respond to a collection of information unless it displays
a currently valid OMB control number (see 44 U.S.C. 3507). Also, notwithstanding any other
provisions of law, no person shall be subject to penalty for failing to comply with a collection of
information if the collection of information does not display a currently valid OMB control
number (see 44 U.S.C. 3512).
14. Action Requested. Administrators are to provide this advisory to appropriate staff.
15. Inquiries. Questions should be directed to the appropriate regional office.
16. Attachments.
Attachment 1 Subtitle E—Self-Employment Assistance
Attachment 2 Available Self-Employment Assistance (SEA) Grants
Attachment 3 Self-Employment Assistance (SEA) Funding Application Cover Page
Attachment 4 Self-Employment Assistance (SEA) Funding Abstract
Attachment 5 Implementing and Operating Instructions for Administering Self-
Employment Assistance (SEA) Programs for Emergency Unemployment
Compensation (EUC) Recipients
Attachment 6 Addendum to Agreement under the Supplemental Appropriations Act, 2008
Attachment 7 Model Language and Commentary on Language to Implement a Self-
Employment Assistance (SEA) Program for Individuals Eligible for Regular
Unemployment Compensation
Attachment 8 Model Language and Commentary on Language to Implement a Self-
Employment Assistance (SEA) Program for Individuals Eligible for
Extended Benefits (EB)
Attachment 9 ETA 9161 Reporting Instructions
Attachment 10 Quarterly Progress Report
Attachment 1 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att1.pdf)
Attachment 1
Subtitle E—Self-Employment Assistance
SEC. 2181. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSISTANCE
PROGRAMS.
(a) AVAILABILITY FOR INDIVIDUALS RECEIVING EXTENDED COMPENSATION.—
Title II of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended by inserting at the end the following new section:
“AUTHORITY TO CONDUCT SELF-EMPLOYMENT ASSISTANCE PROGRAMS
“SEC. 208. (a)(1) At the option of a State, for any weeks of unemployment beginning after the
date of enactment of this section, the State agency of the State may establish a self-employment
assistance program, as described in subsection (b), to provide for the payment of extended
compensation as self-employment assistance allowances to individuals who would otherwise
satisfy the eligibility criteria under this title.
“(2) Subject to paragraph (3), the self-employment assistance allowance described in paragraph
(1) shall be paid to an eligible individual from such individual’s extended compensation account,
as described in section 202(b), and the amount in such account shall be reduced accordingly.
“(3)(A) Subject to subparagraph (B), for purposes of self-employment assistance programs
established under this section and section 4001(j) of the Supplemental Appropriations Act, 2008,
an individual shall be provided with self-employment assistance allowances under such
programs for a total of not greater than 26 weeks (referred to in this section as the ‘combined
eligibility limit’).
“(B) For purposes of an individual who is participating in a self-employment assistance program
established under this section and has not reached the combined eligibility limit as of the date on
which such individual exhausts all rights to extended compensation under this title, the
individual shall be eligible to receive self-employment assistance allowances under a self-
employment assistance program established under section 4001(j) of the Supplemental
Appropriations Act, 2008, until such individual has reached the combined eligibility limit,
provided that the individual otherwise satisfies the eligibility criteria described under title IV of
such Act.
“(b) For the purposes of this section, the term ‘self-employment assistance program’ means a
program as defined under section 3306(t) of the Internal Revenue Code of 1986, except as
follows:
“(1) all references to ‘regular unemployment compensation under the State law’ shall be deemed
to refer instead to ‘extended compensation under title II of the Federal-State Extended
Unemployment Compensation Act of 1970’;
“(2) paragraph (3)(B) shall not apply;
“(3) clause (i) of paragraph (3)(C) shall be deemed to state as follows:
Attachment 1
“ ‘(i) include any entrepreneurial training that the State or non-profit organizations may provide
in coordination with programs of training offered by the Small Business Administration, which
may include business counseling, mentorship for participants, access to small business
development resources, and technical assistance; and’;
“(4) the reference to ‘5 percent’ in paragraph (4) shall be deemed to refer instead to ‘1 percent’;
and
“(5) paragraph (5) shall not apply.
“(c) In the case of an individual who is eligible to receive extended compensation under this title,
such individual shall not receive self-employment assistance allowances under this section unless
the State agency has a reasonable expectation that such individual will be entitled to at least 13
times the individual’s average weekly benefit amount of extended compensation and emergency
unemployment compensation.
“(d)(1) An individual who is participating in a self-employment assistance program established
under this section may elect to discontinue participation in such program at any time.
“(2) For purposes of an individual whose participation in a self-employment assistance program
established under this section is terminated pursuant to subsection (a)(3) or who has discontinued
participation in such program, if the individual continues to satisfy the eligibility requirements
for extended compensation under this title, the individual shall receive extended compensation
payments with respect to subsequent weeks of unemployment, to the extent that amounts remain
in the account established for such individual under section 202(b).”
(b) AVAILABILITY FOR INDIVIDUALS RECEIVING EMERGENCY UNEMPLOYMENT
COMPENSATION.—Section 4001 of the Supplemental Appropriations Act, 2008 (Public Law
110–252; 26 U.S.C. 3304 note), as amended by sections 2141(b) and 2142(a), is further amended
by inserting at the end the following new subsection:
“(j) AUTHORITY TO CONDUCT SELF-EMPLOYMENT ASSISTANCE PROGRAM.—
“(1) IN GENERAL.—
“(A) ESTABLISHMENT.—Any agreement under subsection (a) may provide that the State
agency of the State shall establish a self-employment assistance program, as described in
paragraph (2), to provide for the payment of emergency unemployment compensation as self-
employment assistance allowances to individuals who would otherwise satisfy the eligibility
criteria specified in subsection (b).
“(B) PAYMENT OF ALLOWANCES.—Subject to subparagraph (C), the self-employment
assistance allowance described in subparagraph (A) shall be paid to an eligible individual from
such individual’s emergency unemployment compensation account, as described in section 4002,
and the amount in such account shall be reduced accordingly.
Attachment 1
“(C) LIMITATION ON SELF-EMPLOYMENT ASSISTANCE FOR INDIVIDUALS
RECEIVING EXTENDED COMPENSATION AND EMERGENCY UNEMPLOYMENT
COMPENSATION.—
“(i) COMBINED ELIGIBILITY LIMIT.—Subject to clause (ii), for purposes of self-
employment assistance programs established under this subsection and section 208 of the
Federal-State Extended Unemployment Compensation Act of 1970, an individual shall be
provided with self-employment assistance allowances under such programs for a total of not
greater than 26 weeks (referred to in this subsection as the ‘combined eligibility limit’).
“(ii) CARRYOVER RULE.—For purposes of an individual who is participating in a self-
employment assistance program established under this subsection and has not reached the
combined eligibility limit as of the date on which such individual exhausts all rights to extended
compensation under this title, the individual shall be eligible to receive self-employment
assistance allowances under a self-employment assistance program established under section 208
of the Federal-State Extended Unemployment Compensation Act of 1970 until such individual
has reached the combined eligibility limit, provided that the individual otherwise satisfies the
eligibility criteria described under Title II of such Act.
“(2) DEFINITION OF ‘SELF-EMPLOYMENT ASSISTANCE PROGRAM’.—
For the purposes of this section, the term ‘self-employment assistance program’ means a
program as defined under section 3306(t) of the Internal Revenue Code of 1986, except as
follows:
“(A) all references to ‘regular unemployment compensation under the State law’ shall be deemed
to refer instead to ‘emergency unemployment compensation under title IV of the Supplemental
Appropriations Act, 2008’;
“(B) paragraph (3)(B) shall not apply;
“(C) clause (i) of paragraph (3)(C) shall be deemed to state as follows:
“ ‘(i) include any entrepreneurial training that the State or non-profit organizations may provide
in coordination with programs of training offered by the Small Business Administration, which
may include business counseling, mentorship for participants, access to small business
development resources, and technical assistance; and’;
“(D) the reference to ‘5 percent’ in paragraph (4) shall be deemed to refer instead to ‘1 percent’;
and
“(E) paragraph (5) shall not apply.
“(3) AVAILABILITY OF SELF-EMPLOYMENT ASSISTANCE ALLOWANCES.—
In the case of an individual who is eligible to receive emergency unemployment compensation
payment under this title, such individual shall not receive self-employment assistance allowances
under this subsection unless the State agency has a reasonable expectation that such individual
will be entitled to at least 13 times the individual’s average weekly benefit amount of extended
compensation and emergency unemployment compensation.
Attachment 1
“(4) PARTICIPANT OPTION TO TERMINATE PARTICIPATION IN SELF-EMPLOYMENT
ASSISTANCE PROGRAM.—
“(A) TERMINATION.—An individual who is participating in a self-employment assistance
program established under this subsection may elect to discontinue participation in such program
at any time.
“(B) CONTINUED ELIGIBILITY FOR EMERGENCY UNEMPLOYMENT
COMPENSATION.—For purposes of an individual whose participation in the self-employment
assistance program established under this subsection is terminated pursuant to paragraph (1)(C)
or who has discontinued participation in such program, if the individual continues to satisfy the
eligibility requirements for emergency unemployment compensation under this title, the
individual shall receive emergency unemployment compensation payments with respect to
subsequent weeks of unemployment, to the extent that amounts remain in the account established
for such individual under section 4002(b) or to the extent that such individual commences
receiving the amounts described in subsections (c), (d), or (e) of such section, respectively.”.
SEC. 2182. GRANTS FOR SELF-EMPLOYMENT ASSISTANCE PROGRAMS.
(a) IN GENERAL.—
(1) ESTABLISHMENT OR IMPROVED ADMINISTRATION.—Subject to the requirements
established under subsection (b), the Secretary shall award grants to States for the purposes of—
(A) improved administration of self-employment assistance programs that have been established,
prior to the date of the enactment of this Act, pursuant to section 3306(t) of the Internal Revenue
Code of 1986 (26 U.S.C. 3306(t)), for individuals who are eligible to receive regular
unemployment compensation;
(B) development, implementation, and administration of self-employment assistance programs
that are established, subsequent to the date of the enactment of this Act, pursuant to section
3306(t) of the Internal Revenue Code of 1986, for individuals who are eligible to receive regular
unemployment compensation; and
(C) development, implementation, and administration of self-employment assistance programs
that are established pursuant to section 208 of the Federal-State Extended Unemployment
Compensation Act of 1970 or section 4001(j) of the Supplemental Appropriations Act, 2008, for
individuals who are eligible to receive extended compensation or emergency unemployment
compensation.
(2) PROMOTION AND ENROLLMENT.—Subject to the requirements established under
subsection (b), the Secretary shall award additional grants to States that submit approved
applications for a grant under paragraph (1) for such States to promote self-employment
assistance programs and enroll unemployed individuals in such programs.
Attachment 1
(b) APPLICATION AND DISBURSAL.—
(1) APPLICATION.—Any State seeking a grant under paragraph (1) or (2) of subsection (a)
shall submit an application to the Secretary at such time, in such manner, and containing such
information as is determined appropriate by the Secretary. In no case shall the Secretary award a
grant under this section with respect to an application that is submitted after December 31, 2013.
(2) NOTICE.—Not later than 30 days after receiving an application described in paragraph (1)
from a State, the Secretary shall notify the State agency as to whether a grant has been approved
for such State for the purposes described in subsection (a).
(3) CERTIFICATION.—If the Secretary determines that a State has met the requirements for a
grant under subsection (a), the Secretary shall make a certification to that effect to the Secretary
of the Treasury, as well as a certification as to the amount of the grant payment to be transferred
to the State account in the Unemployment Trust Fund under section 904 of the Social Security
Act (42 U.S.C. 1104). The Secretary of the Treasury shall make the appropriate transfer to the
State account not later than 7 days after receiving such certification.
(c) ALLOTMENT FACTORS.—For purposes of allotting the funds available under subsection
(d) to States that have met the requirements for a grant under this section, the amount of the grant
provided to each State shall be determined based upon the percentage of unemployed individuals
in the State relative to the percentage of unemployed individuals in all States.
(d) FUNDING.—There are appropriated, out of moneys in the Treasury not otherwise
appropriated, $35,000,000 for the period of fiscal year 2012 through fiscal year 2013 for
purposes of carrying out the grant program under this section,
SEC. 2183. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SELF-EMPLOYMENT
ASSISTANCE PROGRAMS.
(a) MODEL LANGUAGE AND GUIDANCE.—For purposes of assisting States in establishing,
improving, and administering self-employment assistance programs, the Secretary shall—
(1) develop model language that may be used by States in enacting such programs, as well as
periodically review and revise such model language; and
(2) provide technical assistance and guidance in establishing, improving, and administering such
programs.
(b) REPORTING AND EVALUATION.—
(1) REPORTING.—The Secretary shall establish reporting requirements for States that have
established self-employment assistance programs, which shall include reporting on—
(A) the total number of individuals who received unemployment compensation and—
(i) individuals referred to a self-employment assistance program;
Attachment 1
(ii) individuals who participated in such program; and
(iii) received an allowance under such program;
(B) the total amount of allowances provided to individuals participating in a self-employment
assistance program;
(C) the total income (as determined by survey or other appropriate method) for businesses that
have been established by individuals participating in a self-employment assistance program, as
well as the total number of individuals employed through such businesses; and
(D) any additional information, as determined appropriate by the Secretary.
(2) EVALUATION.—Not later than 5 years after the date of the enactment of this Act, the
Secretary shall submit to Congress a report that evaluates the effectiveness of self-employment
assistance programs established by States, including—
(A) an analysis of the implementation and operation of self-employment assistance programs by
States;
(B) an evaluation of the economic outcomes for individuals who participated in a self-
employment assistance program as compared to individuals who received unemployment
compensation and did not participate in a self-employment assistance program, including a
comparison as to employment status, income, and duration of receipt of unemployment
compensation or self-employment assistance allowances; and
(C) an evaluation of the state of the businesses started by individuals who participated in a self-
employment assistance program, including information regarding—
(i) the type of businesses established;
(ii) the sustainability of the businesses;
(iii) the total income collected by the businesses;
(iv) the total number of individuals employed through such businesses; and
(v) the estimated Federal and State tax revenue collected from such businesses and their
employees.
(c) FLEXIBILITY AND ACCOUNTABILITY.—The model language, guidance, and reporting
requirements developed by the Secretary under subsections (a) and (b) shall—
(1) allow sufficient flexibility for States and participating individuals; and
(2) ensure accountability and program integrity.
Attachment 1
(d) CONSULTATION.—For purposes of developing the model language, guidance, and
reporting requirements described under subsections(a) and (b), the Secretary shall consult with
employers, labor organizations, State agencies, and other relevant program experts.
(e) ENTREPRENEURIAL TRAINING PROGRAMS.—The Secretary shall utilize resources
available through the Department of Labor and coordinate with the Administrator of the Small
Business Administration to ensure that adequate funding is reserved and made available for the
provision of entrepreneurial training to individuals participating in self-employment assistance
programs.
(f) SELF-EMPLOYMENT ASSISTANCE PROGRAM.—For purposes of this section, the term
“self-employment assistance program” means a program established pursuant to section 3306(t)
of the Internal Revenue Code of 1986 (26 U.S.C. 3306(t)), section 208 of the Federal-State
Extended Unemployment Compensation Act of 1970, or section 4001(j) of the Supplemental
Appropriations Act, 2008, for individuals who are eligible to receive regular unemployment
compensation, extended compensation, or emergency unemployment compensation.
SEC. 2184. DEFINITIONS.
In this subtitle:
(1) SECRETARY.—The term “Secretary” means the Secretary of Labor.
(2) STATE; STATE AGENCY.—The terms “State” and “State agency” have the meanings
given such terms under section 205 of the Federal-State Extended Unemployment Compensation
Act of 1970 (26 U.S.C. 3304 note)
Attachment 2 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att2.pdf)
Attachment 2
Available Self-Employment Assistance SEA Grants
Establishment Promotion Establishment Promotion
Total or Improved and Total or Improved and
State Available Administration Enrollment State Available Administration Enrollment
Alabama $479,840 $411,291 $68,549 Nebraska $111,006 $95,148 $15,858
Alaska $69,071 $59,204 $9,867 Nevada $465,817 $399,272 $66,545
Arizona $711,300 $609,686 $101,614 New Hampshire $100,300 $85,971 $14,329
Arkansas $276,319 $236,845 $39,474 New Jersey $1,070,511 $917,581 $152,930
California $5,388,572 $4,618,776 $769,796 New Mexico $173,222 $148,476 $24,746
Colorado $562,343 $482,008 $80,335 New York $1,978,999 $1,696,285 $282,714
Connecticut $415,008 $355,721 $59,287 North Carolina $1,228,623 $1,053,105 $175,518
Delaware $80,608 $69,093 $11,515 North Dakota $33,347 $28,583 $4,764
Dist of Columbia $89,317 $76,557 $12,760 Ohio $1,238,931 $1,061,941 $176,990
Florida $2,400,953 $2,057,960 $342,993 Oklahoma $274,350 $235,157 $39,193
Georgia $1,156,906 $991,634 $165,272 Oregon $468,830 $401,854 $66,976
Hawaii $111,120 $95,246 $15,874 Pennsylvania $1,273,656 $1,091,705 $181,951
Idaho $167,546 $143,611 $23,935 Puerto Rico $504,523 $432,448 $72,075
Illinois $1,615,519 $1,384,731 $230,788 Rhode Island $159,734 $136,915 $22,819
Indiana $720,577 $617,637 $102,940 South Carolina $548,432 $470,085 $78,347
Iowa $242,970 $208,260 $34,710 South Dakota $51,445 $44,096 $7,349
Kansas $249,408 $213,778 $35,630 Tennessee $709,202 $607,887 $101,315
Kentucky $488,417 $418,643 $69,774 Texas $2,457,874 $2,106,749 $351,125
Louisiana $376,976 $323,122 $53,854 Utah $218,841 $187,578 $31,263
Maine $132,233 $113,343 $18,890 Vermont $49,329 $42,282 $7,047
Maryland $541,360 $464,023 $77,337 Virginia $671,010 $575,151 $95,859
Massachusetts $632,631 $542,255 $90,376 Virgin Islands $9,718 $8,330 $1,388
Michigan $1,178,691 $1,010,307 $168,384 Washington $791,014 $678,012 $113,002
Minnesota $471,045 $403,753 $67,292 West Virginia $157,955 $135,390 $22,565
Mississippi $356,732 $305,770 $50,962 Wisconsin $568,929 $487,653 $81,276
Missouri $638,248 $547,070 $91,178 Wyoming $44,750 $38,357 $6,393
Montana $85,942 $73,665 $12,277 US $35,000,000 $30,000,000 $5,000,000
Attachment 3 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att3.pdf)
Attachment 3
SELF-EMPLOYMENT ASSISTANCE (SEA) FUNDING APPLICATION OUTLINE
A. SEA Application Summary. States must use this outline to develop their application for
funding to improve, implement and/or administer an SEA program and must identify whether the
funds will be used to implement a regular Unemployment Compensation (UC), Extended
Benefits (EB), and/or Emergency Unemployment Compensation (EUC) SEA program. In
addition, the funding application must indicate whether the state is applying for a grant for:
• Improved administration of an existing SEA program established before the date of
enactment of Subtitle E;
• Development, implementation, and administration of a new SEA program established
after the enactment of Subtitle E for individuals who are eligible to receive regular UC;
and/or
• Development, implementation, and administration of an SEA program established under
section 208 of the Federal-State Extended Unemployment Compensation Act of 1970 or
section 4001(j) of the Supplemental Appropriations Act, 2008 for individuals who are
eligible to receive EB or EUC.
• Promotion of the SEA program and enrollment of unemployed individuals in such
programs. Note: States applying for a grant for these activities must also apply for a
grant for one or more of the activities listed above.
B. Program Design. The description of the SEA program(s) must address in detail processes
that will be put in place to ensure that all core components described in this guidance and its
attachments, as applicable, are met, including that:
a. Individuals must be eligible to receive benefits under the applicable program, except that
the individuals are not required to meet program requirements related to:
• Availability for work;
• Active work search;
• Refusal to accept work; and
• Disqualifying income with respect to income earned from self-employment;
b. Individuals must be participating in self-employment assistance activities, including
entrepreneurial training, business counseling, and technical assistance that are approved
by the state UC agency; and
c. Individuals must be actively engaged on a full-time basis in activities (which may include
training) relating to the establishment of a business and becoming self-employed.
Note: No more than one percent of individuals receiving EUC or EB can participate in this
Federal SEA program.
Proposals should include a narrative that is responsive to the following project design elements:
a. Notification: A description of the notification process to advise potentially eligible
individuals about the SEA program.
b. Selection: A description of the state’s process to select those individuals who voluntarily
have agreed to participate in the SEA program.
Attachment 3
c. SEA Activities and Training: A description of the planned activities and training that
would be required and/or recommended for SEA participants.
d. Feedback: A description of the procedures for follow up and attendance verification of
required SEA activities/training.
e. Staffing: A description of how the SEA program will be staffed. States must ensure that
proposed staffing arrangements have been agreed upon by all parties before submitting
the SEA proposal.
f. Other Training Resources: A description of planned resources to be leveraged from
entrepreneurship organizations, including the Small Business Administration.
g. One-Stop Career Center Services: A description of planned resources to be used from
One-Stop Career Centers to support the development of a claimant’s self-employment
plan.
h. Agreements and/or Memorandum of Understanding (MOU): A description of any
written agreements or MOU with participating One-Stop Career Centers and/or partners
like the Small Business Administration to provide services and/or training. The state may
provide a copy of the agreement or MOU in lieu of the description.
i. Monitoring: A description of how the state will monitor the progress SEA recipients are
making in setting up their businesses.
j. Required Reporting: An assurance that the state will implement reporting of SEA
activity in accordance with the instructions in this UIPL.
k. Other: A description of any additional factors not covered in this list that will be a part of
the program.
States may use the table below, adding any activities the state has identified other than the
ones listed, to identify the staff that will conduct key SEA activities and whether these
activities will be conducted on an individual basis or in a group setting.
Example:
Activity Individual/ Group/Staff
Staff
SEA Orientation
Development of a Business Plan
Training
Required Activities
C. Program Costs. Applications must include a description of all proposed costs and a
projected schedule for significant program activities. The costs should be identified separately as
start-up costs and the projected costs for operation. Start-up costs would include the costs of
Attachment 3
staff training, program development (which would include the development of policies,
operating procedures, and claimant pamphlets or brochures), automation costs related to service
delivery and automation costs for Employment and Training Administration (ETA) required
reports. Proposals must include all information identified in this outline to receive funding.
a. Staff Costs. The application should identify both estimated state staffing needs (in
excess of base staff) and any contract staff needs, for example, for automation. Staff
costs for new SEA programs may include costs to administer SEA, staff training, and
development of policies and procedures. States should identify, separately, all staff
costs for developing SEA reports and programming requirements separate from the
costs of administering SEA activities. States may include information in the
following format.
Example:
Position Title # Hours Cost Per Hour Total Cost
SEA Coordinator 120 $50 $6,000
b. Other. The application should include costs for other activities and/or equipment not
identified above. Each cost should be broken down to the specific cost item with a
description of each cost and the associated costs for each item requested. All costs
must be related to administering the SEA program. Examples of expenditures may
include:
• Automation/Programming costs (this may include the SEA application, costs for
updating automated systems to process applications and claims, preparation of
reports, etc.); and/or
• Outreach materials
c. Total Costs. The total funding request must not exceed the state’s total allotment.
D. Project Timeline. A timeline of the project must be included that identifies significant
milestones in implementing the program, including project design and any staff training. The
timeline should include a projected date for completion of methodology to identify SEA
participants and tracking of participants’ progress and status. It should also include the projected
completion date of programming the monthly ETA required reports (see Attachment 9 of this
UIPL), and the date that the first SEA participants will be offered services.
E. Supporting Materials. States may attach additional materials that will support their
application.
Paperwork Reduction Act: The Office of Management and Budget has authorized this information collection and assigned it 1205-0496,
expires November 30, 2012. According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of
information unless such collection displays a valid OMB control number. Public reporting burden for this collection of information is estimated
to average 125 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. The obligation to respond to this collection is required to obtain or retain
benefit. Pub L. 112-96. Send comments regarding the burden estimate or any other aspect of this collection of information, including
suggestions for reducing this burden, to the U.S. Department of Labor-ETA, Office of Unemployment Insurance, 200 Constitution Avenue,
N.W., Room S-4524, Washington, DC 20210.
Attachment 4 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att4.pdf)
Attachment 4
SELF-EMPLOYMENT ASSISTANCE (SEA) COVER PAGE
Control Number 1205-0496, Expires 11/30/2012
State Name:
Name and Title of the State Agency Administrator:
Name:
Title:
Address:
SEA Program Lead/Contact Name:
The person who can answer questions about the
SEA proposal. Telephone:
E-mail:
Subtotal SEA Proposal Cost for Implementation/Improved $
Administration
The total amount of funds requested for this
portion of the application (not to exceed State
allotment).
Subtotal SEA Proposal Cost for Promotion and $
Enrollment
The total amount of funds requested for this
portion of the application (not to exceed State
allotment).
Total SEA Proposal Cost including $
Implementation/Improved Administration Costs and
Promotional and Enrollment Costs
Indicate whether funding is requested for regular Regular UC
Unemployment Compensation (UC), Extended Benefits EB
(EB), and/or Emergency Unemployment Compensation EUC
(EUC) SEA program activities.
If applicable, a copy of the state law pertaining to regular
UC and/or EB pursuant to Subtitle E of the Middle
Class Tax Relief and Job Creation Act of 2012
Please attach or provide an estimated date of
submittal.
It is understood that by the acceptance of these funds for Yes
this proposal, the state assures it will be reporting SEA
activity in compliance with the requirements of the SQSP, No
and meet any other assurances required.
See next page for Paperwork Reduction Act Public Burden Notice
Attachment 4
Public Burden: The Office of Management and Budget has authorized this information
collection and assigned it 1205-0496, expires November 30, 2012. According to the Paperwork
Reduction Act of 1995, no persons are required to respond to a collection of information unless
such collection displays a valid OMB control number. Public reporting burden for this collection
of information is estimated to average 125 hours per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. The obligation to respond to this
collection is required to obtain or retain benefit. Pub L. 112-96. Send comments regarding the
burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the U.S. Department of Labor-ETA, Office of Unemployment Insurance,
200 Constitution Avenue, N.W., Room S-4524, Washington, DC 20210.
Attachment 5 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att5.pdf)
Attachment 5
Implementing and Operating Instructions for Administering Self-Employment Assistance
(SEA) Programs for Emergency Unemployment Compensation (EUC) Recipients 1
A. Introduction
The Federal SEA program is a voluntary program designed to encourage unemployed workers to
become reemployed by starting their own businesses. Under an agreement with the Secretary of
Labor states may pay Federal SEA allowances in lieu of EUC (under the new section 4001(j) of
the Supplemental Appropriations Act of 2008) to individuals whom the state has determined to
meet eligibility requirements of the state’s SEA program. Under this program, states pay a
weekly self-employment allowance instead of EUC, to help eligible unemployed workers while
they actively engage in activities that will lead to establishing businesses and becoming self-
employed. This document provides guidance to states in administering the provision of Section
2181 of the Middle Class Tax Relief and Job Creation Act of 2012 (the Act) - (Subtitle E-Self-
Employment Assistance). The Act requires that no more than one percent of individuals
receiving EUC may participate in this Federal SEA program.
Note: The number of claimants participating in an EUC SEA program in a state may include
interstate claimants residing in that state if the state of residence is operating an EUC SEA
program, even though the “paying state” may not be operating an EUC SEA program. For
example, an individual is claiming against State A, which does not have an EUC SEA program,
but lives in State B, which does. State B may permit the individual, if otherwise eligible
(including the “one percent” limitation), to participate in its SEA program, while collecting
benefits from State A. As an EUC SEA participant, the individual would not be subject to the
requirements for availability for work, active search for work, or refusal to accept work. To
optimize the success of these EUC SEA programs, the Department strongly encourages states to
coordinate efforts to facilitate and allow such EUC interstate claimants to be able to participate
in these programs, if otherwise eligible. Further, the state agrees to honor interstate claims
determinations of eligibility for enrollment in EUC SEA programs from agent states that have
EUC SEA programs.
Subtitle E of the Act also amends the Supplemental Appropriations Act of 2008 to make Federal
SEA available to individuals receiving EUC. States must execute an Addendum to their EUC
agreement with the Secretary to pay Federal SEA allowances in lieu of EUC benefits (see
Attachment 6 to this Unemployment Insurance Program Letter (UIPL)).
These SEA programs will be established consistent with section 3306(t) of the Internal Revenue
Code of 1986, except that all references to “regular compensation” refer instead to “emergency
unemployment compensation” under Title IV of the Supplemental Appropriations Act, 2008, as
amended, except that:
• The requirement that participants must have been identified through a state's profiling
system as likely to exhaust regular UC does not apply to the payment of Federal SEA for
EUC; and
• The requirement that SEA programs not result in increased costs to the state UC program
does not apply to SEA programs for EUC recipients.
States may also use these instructions to operate an SEA program for EB recipients.
Attachment 5
Note: To qualify for EUC, an individual must first be determined to be a UC “exhaustee” as
defined in the EUC law. An individual who exhausts SEA under state law is not eligible for
EUC because s/he is not a UC “exhaustee,” since individuals in an SEA program receive an
allowance in lieu of regular UC while they are establishing their own businesses. (See UIPL No.
23-08 and UIPL No. 23-08, Changes 1 through 6, for more information regarding eligibility
requirements for EUC). The instructions in this document are issued to the states and
cooperating state agencies as guidance provided by the U.S. Department of Labor (Department)
in its role as the principal in the Emergency Unemployment Compensation, 2008 (EUC08)
program.
States may not deviate from the operating instructions without the prior approval of the
Department. The interpretations, policies, and procedures issued in this document supersede
those previously issued in UIPL Nos. 23-08 and 23-08, Changes 1, 2, 3, 4, 5, and 6 to the extent
that any inconsistencies exist.
B. Background
The “withdrawal standard” of Section 3304(a)(4), FUTA, and Section 303(a)(5), SSA, limits
withdrawals (with specified exceptions not relevant here) from a state's unemployment fund for
payments of “compensation.” The term “compensation” is defined in Section 3306(h), FUTA, as
“cash benefits payable to individuals with respect to their unemployment.” Because payment
must be made with respect to “unemployment,” the withdrawal standard, prior to 1993,
prohibited states from using unemployment funds to help individuals establish themselves in
self-employment.
The North American Free Trade Agreement (NAFTA), enacted on December 8, 1993, included a
provision allowing states to operate SEA programs over a five-year period that would permit
certain individuals to receive payments from the state's unemployment fund in lieu of regular
compensation to help them establish businesses. Specifically, section 507, NAFTA, amended
the withdrawal standard (and the definition of “unemployment fund” in section 3306(f), FUTA)
to provide that amounts may be withdrawn from the unemployment fund of a state “for the
payment of allowances under a self-employment assistance program (as defined in section
3306(t)), FUTA….” This exception to the withdrawal standard applies solely to the SEA
allowances described in Section 3306(t), FUTA, which was also added to FUTA by section
507(a), NAFTA. Under new section 3306(t)(1), SEA allowances are payable “in lieu of regular”
UC for the purposes of assisting individuals in establishing a business and becoming self-
employed. On October 28, 1998, the Noncitizen Benefit Clarification and Other Technical
Amendments Act of 1998, (P.L. 105-306) permanently authorized the SEA program.
C. Definitions
1. “Act” means Subtitle E-Self-Employment Assistance of Section 2181 of the Middle
Class Tax Relief and Job Creation Act of 2012.
Attachment 5
2. “Additional Benefits (AB)” means compensation totally financed by a state and payable
under a state law by reason of conditions of high unemployment or by reason of other
special factors.
3. “Agreement” means the agreement between a state and the Department under which the
state agency makes payments, as the Department’s agent, of EUC08 in accordance with
Title IV of the Supplemental Appropriations Act, 2008 as interpreted by the
Department as set forth in these instructions or any other instructions issued by the
Department.
4. “Applicable State Law” means the state law of the state, which is the applicable state
for an individual.
5. “Compensation” means cash benefits (including dependents’ allowances) payable to
individuals with respect to their unemployment, and includes regular UC, additional
compensation, EB, and EUC08.
6. “Department” means the U.S. Department of Labor.
7. “Emergency Unemployment Compensation” means the compensation payable under
the Supplemental Appropriations Act of 2008, as amended, and which is referred to as
EUC.
8. “Extended Benefits” means the compensation payable under the Federal-State
Extended Unemployment Compensation Act of 1970, as amended, and which is
referred to as EB.
9. “Regular Unemployment Compensation” means compensation payable to an individual
under any state law, and, when so payable, includes compensation payable under
5 U.S.C. Chapter 85, but does not include EB or additional compensation.
10. “Secretary” means the Secretary of Labor.
11. “State” means the 50 states of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and the U.S. Virgin Islands.
12. “State Agency” means the authority “designated under a State law to administer the
unemployment fund in such state” as defined in Section 3306(e), FUTA.
13. “State Law” means the UC law of a state approved by the Secretary under
Section 3304(a) of the Internal Revenue Code of 1986 (26 USC 3304(a)).
14. “Week” means a week as defined in the applicable state law.
Attachment 5
15. “Week of Unemployment” means a week of total, part-total, or partial unemployment
as defined in the applicable state law, which shall be applied in the same manner and to
the same extent to claims filed under the requirements of the Act.
D. Operating Instructions
1. Eligibility Requirements. To be eligible for Federal SEA allowances, individuals must:
a. Be determined to be unemployed;
b. Meet EUC eligibility requirements, as applicable;
c. Be determined by the UC agency to have a reasonable expectation that they will be
entitled to at least 13 weeks of EUC and/or EB, if applicable;
d. Be actively engaged in full-time activities related to the establishment of a
business and becoming self-employed as prescribed by the state, which may
include entrepreneurial training, business counseling, and technical assistance
offered by either private or public entities, such as the Small Business
Administration.
2. Identifying Federal SEA Recipients. Unlike the SEA program for recipients of regular
UC, Federal SEA recipients need not be identified through a state’s profiling system as
likely to exhaust (regular) benefits to participate in the Federal SEA program.
However, Federal SEA participants must be eligible for EUC. EUC recipients include
EUC for ex-servicemembers and former Federal employees. To qualify for EUC,
individuals must have exhausted all rights to regular UC. Additional Benefits (AB) is
not regular compensation and does not affect receipt of EUC.
Note: An individual’s eligibility for AB is determined by state UC law.
3. Monetary Entitlement/Amount of Allowance. The weekly allowance payable under
this section to an individual will be equal to the weekly benefit amount for EUC
otherwise payable. Individuals who are in the SEA EUC program, have an SEA EUC
entitlement of less than 26 weeks, and exhaust the SEA EUC entitlement may be
eligible to receive an SEA EB entitlement. However, no individual will receive SEA
allowances with respect to EB and EUC in excess of a combined total of 26 weeks.
Individuals enrolled and participating in the Federal SEA program for EUC will receive
a weekly allowance, which is the same as the individual’s EUC weekly benefit amount.
Since the SEA allowance is “in lieu of” EUC, the total amount of Federal SEA that
individuals may receive is equal to their maximum benefit amount of EUC less any
EUC previously received. Similarly, the weekly Federal SEA allowance amount must
equal the weekly benefit amount for EUC, and Federal SEA and EUC may not be paid
for the same week(s).
4. Weeks of Entitlement. Under the “combined eligibility limit,” individuals may receive
up to a maximum of 26 weeks of Federal SEA payments based on EUC and/or EB
combined.
It is possible that an individual may be eligible for EUC or SEA, or EB or SEA. This
will occur when the individual is participating in training related to self-employment,
which is also approved training under state law. In this instance, the state is free to
determine whether EUC/EB or the Federal SEA allowance will be paid provided that
Attachment 5
eligibility requirements for the respective program are met and when the individual
consents to participate in the SEA program. However, in no instance may EUC and/or
EB and Federal SEA be paid with respect to the same week(s).
5. Continuing Eligibility for EUC. Individuals who are terminated from or voluntarily
leave the SEA program may collect EUC (if otherwise eligible) until the total amount
of EUC paid and SEA paid equals the maximum EUC entitlement.
6. Nonmonetary Eligibility Requirements. The following provisions of EUC eligibility
requirements do not apply to individuals engaged in self-employment activities:
a. EUC requirements relating to availability for work, active search for work, and
refusal to accept work.
b. State requirements relating to disqualifying income are not applicable to income
earned from self-employment by individuals claiming SEA allowances.
7. Disqualifications. Individuals must be actively engaged on a full-time basis in
activities relating to the establishment of a business and becoming self-employed to be
eligible for SEA. SEA participants who fail to attend and partake in scheduled SEA
activities or fail to participate full-time in the SEA program are subject to
disqualification. States should note that, like issues of unavailability for work, failure
to participate may be only a temporary condition and would not necessarily result in an
indefinite denial of benefits. The denial/disqualification would apply only for the
week(s) the failure occurred. As with regular compensation, eligible individuals may
receive SEA payments during a benefit year until the maximum benefit amount is
exhausted.
States also have the option of terminating an individual’s participation in the SEA
program for failure to meet SEA program requirements. This may be appropriate if, for
example, the individual misses training necessary to commence self-employment
activities. (Note: If otherwise eligible, individuals may revert back to regular UC and
again to EUC SEA.)
8. Continued Claims.
a. Determination of Weekly Claims. The state agency must promptly, upon the filing
of a claim for a payment of Federal SEA allowance for a week of unemployment,
determine whether the individual is entitled to a payment of Federal SEA for such
week, and, if entitled, the amount of Federal SEA to which the individual is entitled
to and issue a prompt payment.
b. Redetermination. If the state agency determines that an individual failed to actively
engage in self-employment activities (whether scheduled or in general), the
individual must be issued an appealable determination. An individual filing a
Federal SEA weekly certification has the same rights to request a reconsideration of
a determination as are provided for in the applicable state law for regular UC.
9. Determinations.
a. Promptness. Full payment of Federal SEA when due must be made with the
greatest promptness that is administratively feasible.
Attachment 5
b. Notices to Individuals. The state agency must give written notice to the individual
of any determination or redetermination of an initial claim and all weekly claims.
Each notice must include such information about rights to reconsideration or
appeal, or both, using the same process that is used for redeterminations or appeal
as in regular UC.
c. Determination Standards. The procedures for making determinations and
redeterminations and furnishing written notices of determinations, redeterminations,
and rights of appeal to individuals claiming Federal SEA allowances must be
consistent with the Secretary’s “Standard for Claim Determinations-Separation
Information” (Employment Security Manual, Part V, sections 6010 et seq.).
Attachment 5
10. Appeal and Hearing.
a. Applicable State Law. The applicable state law provisions concerning the right of
appeal and fair hearing from a determination or redetermination or entitlement to
regular compensation must apply to determinations and redeterminations of
eligibility for or entitlement to Federal SEA.
b. Rights of Appeal and Fair Hearing. The right of appeal and opportunity for a fair
hearing to claims for Federal SEA must be consistent with these instructions and
with sections 303(a)(1) and 303(a)(3) of SSA (42 U.S.C. 503(a)(1) and 503(a)(3)).
c. Promptness of Appeals Decisions.
1) Decisions on appeals under the Federal SEA Program must accord with the
“Standard for Appeals Promptness-Unemployment Compensation” in 20 CFR
Part 650.
2) Any applicable state law provision allowing the advancement or priority of UC
cases on judicial calendars, or otherwise intended to provide for the prompt
payment of UC when due, must apply to proceedings involving entitlement to
Federal SEA.
11. Fraud, Overpayment, and Recovery. Section 4005(b) of the Supplemental
Appropriation Act, 2008, as amended, Title IV-Emergency Unemployment
Compensation, 2008, applies to benefits found to be improperly paid when paying
Federal SEA in lieu of EUC.
12. Financial Information: Payments to States for SEA Grants. Section 2182 of the Act
provides for grants to states with existing programs to improve administration and for
those states that enact programs, funds for development, implementation, and
administration of the program. In addition, funds are available to states to promote
their SEA program and enroll unemployed individuals in the program. For states with
approved applications, subaccounts will be established in state UTF accounts for each
type of grant and the Treasury will transfer appropriate amounts to the subaccounts
upon certification from the Secretary of Labor to the Secretary of the Treasury. States
will be advised of the availability of the funds through an award letter from the
Department. Upon award, states must report transactions by SEA subaccounts in these
reports:
a. ETA 8403 (Summary of Financial Transaction, Title IX Funds, OMB No. 1205-
1254) and
b. ETA 2112 (UI Financial Transaction Summary, OMB No. 1205-1254) on lines 15
(Title IX Reed Act) and 44 (Title IX (Reed)), and transactions must be identified by
amount and program type, as appropriate, in the comments section.
Currently, the ETA 2112, lines 15 and 44, and the Quarterly Progress Report (QPR) are
in the process of being submitted as an Information Collection Request (ICR) to the
Office of Management and Budget (OMB) requesting the establishment of a new
collection. The Department notes that a Federal agency cannot conduct or sponsor a
collection of information unless it is approved by OMB under the Paperwork Reduction
Act of 1995, and displays a currently valid OMB control number, and the public is not
required to respond to a collection of information unless it displays a currently valid
OMB control number (see 44 U.S.C. 3507). Also, notwithstanding any other
provisions of law, no person shall be subject to penalty for failing to comply with a
Attachment 5
collection of information if the collection of information does not display a currently
valid OMB control number (see 44 U.S.C. 3512). The Department will notify states of
OMB’s decision upon review of the Department’s ICR, including any changes that may
result from this review process, and provide instructions.
13. Required Reporting. OMB has recently approved a new collection of data for any state
that is operating an SEA program (See Attachment 9). This report, the ETA 9161
(OMB No. 1205-0490), Self-Employment Assistance for UI Claimants, is available as
an attachment to this UIPL and can also be accessed through the UI required reports
systems that states currently use to provide electronic data to the National Office.
Please note that this collection applies to any states that are currently offering SEA for
claimants in the regular program, as well as state that begin to offer SEA to claimants in
the EB or EUC program. The reports are program-specific and states must record SEA
activity for claimants based on the program in which the claimants would have been
drawing benefits had they not enrolled in SEA. The first ETA 9161 that states will
submit to the National Office will be for the second calendar quarter of 2012, and that
report will be due on August 1, 2012. Questions concerning reporting frequency,
instructions or methods for developing or reporting this information should be directed
to the Employment and Training Administration’s appropriate regional office.
Attachment 10 includes the Quarterly Progress Report (QPR). The report is for SEA
states whose grant applications were approved by the Department. SEA grantees
should submit the QPR to the appropriate regional office on a quarterly basis to monitor
grantee progress against the approved statement of work.
Attachment 6 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att6.pdf)
Attachment 6
Addendum to Agreement under the Supplemental Appropriations Act, 2008
Dear Governor:
Your state has an Agreement under the Supplemental Appropriation Act, 2008, Title IV—
Emergency Unemployment Compensation (EUC), Public Law (P.L.) 110-252 (Agreement) to
administer the EUC program on behalf of the Federal government. On February 22, 2012, the
President signed the Middle Class Tax Relief and Job Creation Act of 2012 (the Act)—
(P.L. 112-96), which extended and modified the EUC program. New section 4001(j) of the EUC
statute authorizes the Secretary to permit interested states to implement a Federal Self-
Employment Assistance (SEA) program to pay SEA in lieu of EUC to eligible individuals under
an Addendum to the existing state Agreement. The EUC SEA program encourages and enables
unemployed workers to become reemployed by voluntarily starting their own businesses. The
U.S. Department of Labor’s (Department) operating guidance details the requirements for a state
to implement and operate a Federal SEA program.
This addendum to the Agreement adds the following new paragraphs:
XV. The Agency will implement an EUC SEA program and make
payments of self-employment assistance in accordance with the
Act and in accordance with the terms of this Agreement and the
operating instructions issued by the Department.
XVI. The Agency will furnish to the Department such information and
reports and will make such studies as the Department of Labor
determines are necessary or appropriate for carrying out the
purposes of the Act.
The assent of your state to the modification of the Agreement by the addition of the new
paragraphs XV and XVI, above, may be evidenced by your signature at the end of this letter, or
the signature of any state official who has the authority to sign on behalf of your state, as
provided in the certification of authority below the parties’ signatures. Please have this
Addendum signed and sent via email, a PDF copy to [email protected], or you may fax
it to Gay Gilbert, Administrator, Office of Unemployment Insurance, at (202) 693-3229.
Attachment 6
Sincerely,
HILDA L. SOLIS
Secretary of Labor
I accept the modification proposed above to the Agreement previously entered into by this State
under the Supplemental Appropriation Act, 2008, Title IV—Emergency Unemployment
Compensation, P.L. 110-252, for the purpose of implementing and administering a Federal SEA
program on behalf of the Federal government.
By: ______________________________________
(State Signatory)
_______________________________________
(Title)
DATED: _____________________
For the State of ______________________________
CERTIFICATION OF AUTHORITY (if other than the Governor signed above)
NAME: ________________________________________
TITLE: ________________________________________
I hereby certify that the above-named person has the authority under the Constitution and laws of
this State to sign this Agreement on behalf of the State.
Signature: _________________________________
Title: _________________________________
Date: _________________________________
Attachment 7 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att7.pdf)
Attachment 7
Model Language and Commentary on Language
to Implement a Self-Employment Assistance (SEA) Program for
Individuals Eligible for Regular Unemployment Compensation
Section ___. SELF-EMPLOYMENT ASSISTANCE PROGRAM
(a) Definitions. As used in this section--
(1) “Self-employment assistance activities” means activities (including entrepreneurial training,
business counseling, and technical assistance) approved by the [enter appropriate state agency
or official] in which an individual identified through a worker profiling system as likely to
exhaust regular unemployment compensation participates for the purpose of establishing a
business and becoming self-employed.
(2) “Self-employment assistance allowance” means an allowance, payable in lieu of regular
unemployment compensation and from the unemployment fund established under section [enter
relevant section of state law], to an individual participating in self-employment assistance
activities who meets the requirements of this section.
(3) “Regular unemployment compensation” means benefits payable to an individual under this
Act (including benefits payable to Federal civilian employees and to ex-servicemembers
pursuant to 5 U.S.C. Chapter 85) other than additional and extended benefits.
(4) “Full-time basis” shall have the meaning contained in regulations promulgated by the [enter
appropriate state agency or official].
(b) Amount of self-employment assistance allowance. The weekly allowance payable under this
section to an individual will be equal to the weekly benefit amount for regular unemployment
compensation otherwise payable under section [enter appropriate section of state law] of this
Act. The sum of (1) the allowance paid under this section and (2) the regular unemployment
compensation paid under this Act with respect to any benefit year shall not exceed the maximum
benefit amount as established by section [enter appropriate section of state law] with respect to
such benefit year.
(c) Eligibility for self-employment assistance allowance. The allowance described in subsection
(a) shall be payable to an individual at the same interval, on the same terms, and subject to the
same conditions as regular unemployment compensation under this Act, except that--
(1) the requirements of sections [enter relevant sections of state law] relating to availability for
work, active search for work, and refusal to accept work are not applicable to such individual;
(2) the requirements of section [enter relevant section of state law] relating to self-employment
income are not applicable to income earned from self-employment by such individual;
Attachment 7
(3) an individual who meets the requirements of this section shall be considered to be
unemployed under section [enter relevant section of state law]; and
(4) an individual who fails to participate in self-employment assistance activities or who fails to
actively engage on a full-time basis in activities (which may include training) relating to the
establishment of a business and becoming self-employed shall be disqualified for the week such
failure occurs.
(d) Limitation on receipt of self-employment assistance allowances. The aggregate number of
individuals receiving the allowance under this section at any time shall not exceed 5 percent of
the number of individuals receiving regular unemployment compensation. The [enter
appropriate state agency or official] shall, through regulations, prescribe such actions as are
necessary to assure the requirements of this subsection are met.
(e) Financing costs of self-employment assistance allowances. Allowances paid under this
section shall be charged to employers as provided under provisions of this Act relating to the
charging of regular unemployment compensation.
(f) The self-employment assistance program may not result in any cost to the Unemployment
Trust Fund in excess of the cost that would be incurred by the state and charged to the Fund had
the program not been operated.
(g) Self-employment assistance allowances paid under this section shall be paid in accordance
with any additional program requirements established by the Secretary of Labor pursuant to 26
U.S.C. 3306(t).
(h) Effective date. The provisions of this section will apply to weeks beginning after the date of
enactment [or enter appropriate date.].
The commentary below concerns the model language for states wishing to amend their
unemployment compensation (UC) law to provide for the optional SEA program.
States may modify the model language to accommodate state law conventions. Blanks have
been provided for inserting cites to relevant sections of the state law, state agencies, or state
officials.
(a) Definitions.
(1) Self-employment assistance activities. This provision defines these activities consistent with
Section 3306(t)(3)(C) and (D), FUTA. States should note that the approval of the state agency is
limited to the self-employment “activities” themselves. States may not base a denial of approval
on factors unrelated to the self-employment assistance activities. Additionally, this section
implements the requirement in section 3306(t)(3)(B) that SEA participants be identified pursuant
to a state worker profiling system as likely to exhaust regular unemployment compensation.
Attachment 7
(2) Self-employment assistance allowance. This provision defines the SEA allowance and
establishes that such allowances are to be paid from the state's unemployment fund. States may
also wish to consider whether to amend the section of state law that governs withdrawals from
the unemployment fund.
(3) Regular unemployment compensation. This provision defines “regular unemployment
compensation.” It is necessary since SEA allowances are payable “in lieu of” regular
unemployment compensation. State law may already contain a definition of regular
unemployment compensation, in which case the addition of this definition may not be not
necessary.
(4) Full-time basis. This provision defers to the states to define “full-time basis.” Since the
Department is not at this time providing a specific definition of “full-time basis,” it is
recommended that states reserve the right to prescribe the definition in regulations in order to
assure consistency with Federal law.
(b) Amount of self-employment assistance allowance. This provision governs the weekly and
maximum amount of SEA allowance payable. It assures that SEA allowances are paid “in the
same amount” as regular UC. It also clarifies the relationship between payments of regular UC
and SEA allowances with respect to a benefit year.
(c) Eligibility for self-employment assistance allowance. This provision contains the “equal
treatment” requirement of Section 3306(t)(2), FUTA (except for the requirement that SEA
allowances be paid “in the same amount,” which is contained in subsection (b) above). It also
contains the three exceptions to the “equal treatment” requirement which are found in
subparagraphs (A) through (C) of Section 3306(t)(2), FUTA.
By cross referencing the definition of “self-employment assistance activities,” this provision
assures payment only to those individuals participating in such activities. It also contains the
requirement of Section 3306(t)(3)(D) that the individual be actively engaged on a full-time basis
in activities relating to the establishment of a business and becoming self-employed.
States may establish their own disqualifications for failure to meet these requirements. States
should note that, like unavailability for work, failure to participate may be only a temporary
condition which should not necessarily result in an indefinite denial. (Note: If otherwise
eligible, individuals may revert back to regular UC and again to EUC SEA.) The model
language provides for a disqualification only for the week the failure occurred. As with regular
compensation, individuals may receive SEA payments during a benefit year until the maximum
benefit amount is exhausted.
States also have the option of terminating an individual’s participation in the SEA program for
failure to meet SEA program requirements. This may be appropriate if, for example, the
individual misses training necessary to commence self-employment activities.
(d) Limitation on receipt of self-employment assistance allowances. This provision implements
section 3306(t)(4), FUTA, which limits the number of individuals receiving SEA allowances at
Attachment 7
any given time to 5 percent of the number of individuals receiving regular UC. Giving the state
agency authority to create regulations to meet this requirement provides flexibility to the agency
to assure that necessary data will be collected as required by the Department and that the five
percent limit will not be exceeded.
(e) Financing costs of SEA allowances. Since State UC law might explicitly provide only for the
financing of regular UC and not SEA allowances, it may be necessary to describe the financing
mechanism for the allowances. This provision in the model language uses the same mechanism
as is used for regular UC.
(f) This provision implements section 3306(t)(5), FUTA, which prohibits SEA programs from
resulting in any increased cost to the state’s unemployment fund.
(g) This provision implements section 3306(t)(6), FUTA, which provides the Secretary of Labor
with authority to establish other program requirements that are deemed to be appropriate,
including reporting requirements.
(h) Effective Date. This provision establishes the first week of unemployment, beginning after
the Governor signs the agreement, during which SEA allowances may be paid in lieu of regular
unemployment compensation.
Attachment 8 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att8.pdf)
Attachment 8
Model Language and Commentary on Language to Implement a
Self-Employment Assistance (SEA) Program for Individuals Eligible
for Extended Benefits (EB)
Section ___. SELF-EMPLOYMENT ASSISTANCE PROGRAM FOR EB CLAIMANTS
(a) Definitions. As used in this section--
(1) “Self-employment assistance activities” means activities (including any entrepreneurial
training that the State or non-profit organizations may provide in coordination with programs of
training offered by the Small Business Administration, which may include business counseling,
mentorship for participants, access to small business development resources, and technical
assistance) approved by the [enter appropriate state agency or official] for the purpose of
establishing a business and becoming self-employed.
(2) “Self-employment assistance allowance” means an allowance, payable in lieu of extended
compensation and from the unemployment fund established under section [enter relevant section
of state law], to an individual participating in self-employment assistance activities who meets
the requirements of this section.
(3) “Extended compensation” means benefits payable to an individual under the Act and title II
of the Federal-State Extended Unemployment Compensation Act of 1970, as amended.
(4) “Emergency unemployment compensation” means benefits payable to an individual under an
agreement pursuant to Title IV of the Supplemental Appropriations Act, 2008, as amended.
(5) “Full-time basis” shall have the meaning contained in regulations promulgated by the [enter
appropriate state agency or official].
(b) Amount of self-employment assistance allowance. The weekly allowance payable under this
section to an individual will be equal to the weekly benefit amount for extended compensation
otherwise payable under section [enter appropriate section] of this Act. The sum of (1) the
allowance paid under this section and (2) the extended compensation paid under this Act with
respect to any benefit year shall not exceed the maximum benefit amount as established by
section [enter appropriate section of state law] with respect to such benefit year. No individual
shall receive self-employment assistance allowances from programs established under section
[enter relevant section of state EB law], and under agreement for emergency unemployment
compensation for a total of more than 26 weeks.
(c) Eligibility for self-employment assistance allowance. The allowance described in subsection
(a) shall be payable to an individual at the same interval, on the same terms, and subject to the
same conditions as extended compensation under this Act and title II of the Federal-State
Extended Unemployment Compensation Act of 1970, as amended, except that--
Attachment 8
(1) the requirements of sections [enter relevant sections of state law] relating to availability for
work, active search for work, and refusal to accept work are not applicable to such individual;
(2) the requirements of section [enter relevant section of state law] relating to self-employment
income are not applicable to income earned from self-employment by such individual;
(3) an individual who meets the requirements of this section shall be considered to be
unemployed under section [enter relevant section of state law];
(4) an individual who fails to participate in self-employment assistance activities or who fails to
actively engage on a full-time basis in activities (which may include training) relating to the
establishment of a business and becoming self-employed shall be disqualified for the week such
failure occurs; and
(5) an individual shall not be eligible to receive a self-employment allowance unless the [enter
appropriate state agency or official] has a reasonable expectation that the individual will be
entitled to at least 13 times the individual’s average weekly benefit amount of extended
compensation and emergency unemployment compensation.
(d) Limitation on receipt of self-employment assistance allowances. The aggregate number of
individuals receiving the allowance under this section at any time shall not exceed 1 percent of
the number of individuals receiving extended compensation. The [enter appropriate state
agency or official] shall, through regulations, prescribe such actions as are necessary to assure
the requirements of this subsection are met.
(e) Financing costs of self-employment assistance allowances. The provisions of this Act
relating to the charging of extended compensation shall apply to allowances paid under this
section.
(f) Self-employment assistance allowances paid under this section shall be paid in accordance
with any additional program requirements established by the Secretary of Labor pursuant to 26
U.S.C. 3306(t).
(g) Effective date. The provisions of this section will apply to weeks beginning after enactment
[or enter appropriate date.].
Attachment 8
The commentary below concerns the model language for states wishing to amend their extended
benefit (EB) law to provide for the optional SEA program.
States will need to modify the model language to accommodate state law conventions. Blanks
have been provided for inserting cites to relevant sections of the state law, state agencies, or state
officials.
(a) Definitions.
(1) Self-employment assistance activities. This provision defines these activities consistent with
Section 208(b)(3) of the Federal-State Extended Unemployment Compensation Act of 1970
(EUCA). States should note that the approval of the state agency is limited to the self-
employment “activities” themselves. States may not base a denial of approval on factors
unrelated to the self-employment assistance activities.
(2) Self-employment assistance allowance. This provision defines the SEA allowance and
establishes that such allowances are to be paid from the state's unemployment fund. States may
also wish to consider whether to amend the section of state law that governs withdrawals from
the unemployment fund.
(3) Extended compensation. This provision defines “extended compensation.” It is necessary
since SEA allowances are payable “in lieu of” extended compensation. State law may already
contain a definition of extended compensation, in which case the addition of this definition may
not be not necessary.
(4) Emergency unemployment compensation. This provision defines “emergency
unemployment compensation.” It is necessary to implement section 208(c), EUCA which
provides that SEA allowances are only payable to those individuals that the state agency has a
reasonable expectation to be entitled to at least 13 time the individual’s average weekly benefit
amount of extended compensation and emergency unemployment compensation.
(5) Full-time basis. This provision defers to the states to define “full-time basis.” Since the
Department is not at this time providing a specific definition of “full-time basis,” it is
recommended that states reserve the right to prescribe the definition in regulations in order to
assure consistency with Federal law.
(b) Amount of self-employment assistance allowance. This provision governs the weekly and
maximum amount of SEA allowance payable. It assures that SEA allowances are paid “in the
same amount” as extended compensation. It also clarifies the relationship between payments of
extended compensation and SEA allowances with respect to a benefit year. Lastly, this provision
implements section 208(a)(3), EUCA, which limits the total amount of SEA allowances payable
to an individual with respect to extended compensation and emergency unemployment
compensation to 26 weeks.
(c) Eligibility for self-employment assistance allowance. Section 208(b), EUCA, provides that
SEA programs for individuals eligible for EB must conform to the definition of an SEA program
Attachment 8
in section 3306(t), FUTA. Section 3306(t)(2), FUTA, contains an “equal treatment” requirement
providing that SEA allowances must be paid “in the same amount, on the same interval, on the
same terms, and subject to the same conditions” as extended compensation with three
exceptions. The exceptions to the “equal treatment” requirement are found in subparagraphs (A)
through (C) of Section 3306(t)(2), FUTA.
By cross referencing the definition of “self-employment assistance activities,” this provision
assured payment only to those individuals participating in such activities. It also contains the
requirement of Section 3306(t)(3)(D) that the individual be actively engaged on a full-time basis
in activities relating to the establishment of a business and becoming self-employed.
States may establish their own disqualifications for failure to meet these requirements. States
should note that, like unavailability for work, failure to participate may be only a temporary
condition which should not necessarily result in an indefinite denial. (Note: If otherwise
eligible, individuals may revert back to regular UC and again to EUC SEA.) The model
language provides for a disqualification only for the week the failure occurred. As with extended
compensation, individuals may receive SEA payments until the maximum benefit amount with
respect to a benefit year is exhausted.
States also have the option of terminating an individual’s participation in the SEA program for
failure to meet SEA program requirements. This may be appropriate if, for example, the
individual misses training necessary to commence self-employment activities.
SEA allowances may only be payable to an individual if the state agency has a reasonable
expectation that such individual will be entitled to at least 13 time the individual’s average
weekly benefit amount of extended compensation and emergency unemployment compensation.
(d) Limitation on receipt of self-employment assistance allowances. This provision implements
section 208(b)(4), EUCA, which limits the number of individuals receiving SEA allowances at
any given time to 1 percent of the number of individuals receiving extended compensation.
Giving the state agency authority to create regulations to meet this requirement provides
flexibility to the agency to assure that necessary data will be collected as required by this
Department and that the one percent limit will not be exceeded.
(e) Financing costs of SEA allowances. Since State UC law may provide only for the financing
of extended compensation and not SEA allowances, it may be necessary to describe the
financing mechanism for the allowances. The model language uses the same mechanism as is
used for extended compensation.
(f) This section implements section 3306(t)(6), FUTA, which provides the Secretary of Labor
with authority to establish other program requirements that are deemed to be appropriate,
including reporting requirements.
(g) Effective Date. This language establishes the first week of unemployment during which SEA
allowances may be paid in lieu of regular unemployment compensation.
Attachment 9 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att9.pdf)
UI REPORTS HANDBOOK NO. 401 Attachment 9
ETA 9161 Self Employment Assistance for UI Claimants
CONTENTS
A. Facsimile of Forms ........................................................................................ IV-12-2
B. Purpose .......................................................................................................... IV-12-5
C. Due Date and Transmittal ............................................................................. IV-12-5
D. General Reporting Instructions ................................................................... IV-12-5
E. Definitions ...................................................................................................... IV-12-5
F. Item by Item Instructions .............................................................................. IV-12-5
UI REPORTS HANDBOOK NO. 401 Attachment 9
ETA 9161 Self Employment Assistance for UI Claimants
A. Facsimile of Form
ETA 9161A: Self Employment Assistance (Regular Program)
STATE REGION REPORT FOR PERIOD ENDING
calendar quarter end date
Section A: Claimants referred to SEA
1. Claimants Participating in and Receiving Benefits from SEA C1
2. Benefits Paid to all SEA Claimants C2
3. Claimants in SEA who Discontinue Participation C3
4. Claimants in SEA who Receive a Final Payment C4
Section B: SEA Outcomes
5. Number of Establishments created by SEA Claimants C5
6. Cumulative Number of SEA Establishments Operating C6
7. Individuals Employed by SEA Establishments C7
8. Gross Revenues Earned by SEA Establishments C8
9. Wages Paid to individuals by SEA Establishments C9
Comments:
OMB No.: 1205-0490 OMB Expiration Date: 09/30/2012 Estimated Average Response Time: 2 Hours
O M B Burden Statement: These reporting instructions have been approved under the Paperwork reduction Act of
1995. Persons are not required to respond to this collection of information unless it displays a valid OMB control
number. Public reporting burden for this collection of information includes the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Submission is required to retain or obtain benefits under SSA 303(a)(6) (42 U.S.C. 503(a))
and Pub. L. 112-96 section 2183(b)(1). Respondents have no expectation of confidentiality. Send comments
regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing
this burden, to the U.S. Department of Labor, Office of Workforce Security, Room S-4526, 200 Constitution Ave., NW,
Washington, DC, 20210.
UI REPORTS HANDBOOK NO. 401 Attachment 9
ETA 9161 Self Employment Assistance for UI Claimants
ETA 9161B: Self Employment Assistance (Extended Benefits
Program)
STATE REGION REPORT FOR PERIOD ENDING
calendar quarter end date
Section A: Claimants referred to SEA
10. Claimants Participating in and Receiving Benefits from SEA C1
11. Benefits Paid to all SEA Claimants C2
12. Claimants in SEA who Discontinue Participation C3
13. Claimants in SEA who Receive a Final Payment C4
Section B: SEA Outcomes
14. Number of Establishments created by SEA Claimants C5
15. Cumulative Number of SEA Establishments Operating C6
16. Individuals Employed by SEA Establishments C7
17. Gross Revenues Earned by SEA Establishments C8
18. Wages Paid to individuals by SEA Establishments C9
Comments:
OMB No.: 1205-0490 OMB Expiration Date: 09/30/2012 Estimated Average Response Time: 2 Hours
O M B Burden Statement: These reporting instructions have been approved under the Paperwork reduction Act of
1995. Persons are not required to respond to this collection of information unless it displays a valid OMB control
number. Public reporting burden for this collection of information includes the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Submission is required to retain or obtain benefits under SSA 303(a)(6) (42 U.S.C. 503(a))
and Pub. L. 112-96 section 2183(b)(1). Respondents have no expectation of confidentiality. Send comments
regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing
this burden, to the U.S. Department of Labor, Office of Workforce Security, Room S-4526, 200 Constitution Ave., NW,
Washington, DC, 20210.
UI REPORTS HANDBOOK NO. 401 Attachment 9
ETA 9161 Self Employment Assistance for UI Claimants
ETA 9161C: Self Employment Assistance (Federal Program)
STATE REGION REPORT FOR PERIOD ENDING
calendar quarter end date
Section A: Claimants referred to SEA
19. Claimants Participating in and Receiving Benefits from SEA C1
20. Benefits Paid to all SEA Claimants C2
21. Claimants in SEA who Discontinue Participation C3
22. Claimants in SEA who Receive a Final Payment C4
Section B: SEA Outcomes
23. Number of Establishments created by SEA Claimants C5
24. Cumulative Number of SEA Establishments Operating C6
25. Individuals Employed by SEA Establishments C7
26. Gross Revenues Earned by SEA Establishments C8
27. Wages Paid to individuals by SEA Establishments C9
Comments:
OMB No.: 1205-0490 OMB Expiration Date: 09/30/2012 Estimated Average Response Time: 2 Hours
O M B Burden Statement: These reporting instructions have been approved under the Paperwork reduction Act of
1995. Persons are not required to respond to this collection of information unless it displays a valid OMB control
number. Public reporting burden for this collection of information includes the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Submission is required to retain or obtain benefits under SSA 303(a)(6) (42 U.S.C. 503(a))
and Pub. L. 112-96 section 2183(b)(1). Respondents have no expectation of confidentiality. Send comments
regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing
this burden, to the U.S. Department of Labor, Office of Workforce Security, Room S-4526, 200 Constitution Ave., NW,
Washington, DC, 20210.
UI REPORTS HANDBOOK NO. 401 Attachment 9
ETA 9161 Self Employment Assistance for UI Claimants
B. Purpose
The ETA 9161 report is intended to provide a description of the scope of activities states engage in
supporting Self Employment Assistance (SEA) for UI Claimants in the Regular, Extended and
Federal Programs. It contains quarterly information on claimants who begin and exit the program.
C. Due Date and Transmittal.
The report is due in the ETA National Office on the first day of the second month following each
calendar quarter to which it relates.
D. General Reporting Instructions.
This report summarizes claimant activity in the SEA program. Claimants subject to reporting
include anyone who is eligible to receive a week of payment in the SEA program as administered
by the state. There are program specific forms to accommodate reporting for SEA participants in
the regular program, Federal State Extended Benefits program, and Federal benefit programs.
States should ensure that reporting activity is recorded on the correct form by program type.
States should ensure that they are able to capture the necessary outcome data from the SEA
program as requested on the form. In many cases, the only effective way to accomplish this is to
build into the claimant’s SEA agreement a responsibility to follow up with the state and to provide
data on the continued operation of their establishment, whether it employs people and what wages
these people are paid, and what sorts of revenues the establishment may be generating. States
should not rely on UI wage records or state business tax records, as many self-employed
individuals may not be represented in those systems and would go under-reported.
E. Definitions
Establishment: For the purposes of this report, states should use the definition of establishment
provided by the Bureau of Labor Statistics for the Current Employment Statistics Survey. An
establishment is an economic unit, such as a factory, mine, store, or office that produces goods or
services. It generally is at a single location and is engaged predominantly in one type of economic
activity. Where a single location encompasses two or more distinct activities, these are treated as
separate establishments, if separate payroll records are available, and the various activities are
classified under different industry codes.
F. Item by Item Instructions
1. Claimants Participating in and Receiving Benefits from SEA: Provide the number of claimants
who are part of the state’s SEA program and received at least one check during the reporting
period. Do not include counts of claimants who attended an orientation, or made inquiries
about SEA or were referred to the program but never formally entered the program. Include
counts of claimants who entered the program and received at least one payment but were
subsequently disqualified for monetary or non-monetary reasons.
2. Benefits Paid to all SEA Claimants: Provide the total benefits paid during the report period to
all claimants participating in the state SEA program.
3. Claimants in SEA who Discontinue Participation: Enter the number of claimants who chose to
leave the SEA program, or who were removed from the program due to monetary or non-
monetary eligibility issues.
4. Claimants in SEA who Receive a Final Payment: Enter the number of claimants who entered
the state SEA program and received a payment that reduced their account balance, in the
program they are claiming benefits in, to zero.
5. Number of Establishments created by SEA Claimants: Enter the number of establishments
created by SEA claimants.
UI REPORTS HANDBOOK NO. 401 Attachment 9
ETA 9161 Self Employment Assistance for UI Claimants
6. Number of SEA Establishments Operating: Report the number of establishments that were
created by claimants in the SEA program in prior reporting periods that continue to operate
during the current reporting period.
7. Individuals Employed by SEA Establishments: Report the number of people employed by
SEA establishments identified in items 5 and 6 above. Including the SEA participant in the
total reported.
8. Gross Revenues Earned by SEA Establishments: Report the gross revenues earned by SEA
Establishments identified in items 5 and 6 above.
9. Wages Paid by SEA Establishments: Report the amount of wages and compensation paid to
individuals, including the SEA participant, reported as employed by SEA establishments
identified in items 5 and 6 above.
Attachment 10 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL_20_12_att10.pdf)
Attachment 10
Quarterly Progress Report
State: ____________ Project Name: ____________
Project Director: ______________
Grant No: ____________________
Quarter Ending: ______________
Section I. Summary of Grant Activities, Problems Identified and Solutions.
• Progress towards quarterly goals
• Progress towards enrollment/job placements/post program outcomes
• Implementation/ Administration
• Other key activities and constraints
o Key indicators:
Infrastructure implementation and development
Staffing
Education and training
Monitoring
Section II. Outreach to Employers and Partners.
• Progress towards quarterly goals
• Communication
o Key Indicators:
MOU or written agreements
Development of outreach materials
Partnerships established
Promotional activities (e.g. meetings attended, media, mailings)
Section III. Timeline for Program Completion.
• Grant progress against timeline
• Outcomes and data collection
o Key Indicators:
Program enrollments
Employer Contacts
Plans established
Businesses Established
Section IV. Success Stories.
Section V. Technical Assistance Needs.
What does federal law require in your situation?
Ezel checks current federal labor law against your facts and answers with citations.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace