Laid-off workers who want to launch a business instead of hunting for another job may soon have a clearer path. On July 16, a bipartisan group of senators introduced the NO BOSS Act, short for the New Opportunities for Business Ownership and Self-Sufficiency Act, which would overhaul a little-used federal program that lets unemployed Americans keep collecting benefits while building a startup.
The bill already has momentum. The House version passed unanimously in late April. Senators Chris Coons (D-DE), James Lankford (R-OK), and Jon Husted (R-OH) are now carrying it on the Senate side, with endorsements from Shopify, Block, the R Street Institute, and the Small Business & Entrepreneurship Council.
How the program works today and what would change
Federal law already allows states to run Self-Employment Assistance (SEA) programs. Eligible unemployment insurance recipients can receive weekly payments while working full-time on a new business instead of searching for a traditional job. The catch is that few states bother, and the rules are tight.
Only about 8 states currently operate SEA programs, with Oregon and New York running the largest. New York’s program had just 1,005 participants as of 2022. Nationally, the cap sits at 5% of unemployment beneficiaries per state.
The NO BOSS Act would raise that cap to 10%. It would also drop the requirement that participants be “likely to exhaust benefits,” a gatekeeping rule that effectively limits the program to workers considered hardest to reemploy. Under the new bill, writing a business plan and conducting a market feasibility study would count as qualifying entrepreneurship activity, replacing the current mandate for formal training.
Senator Coons framed the bill around the shifting economy. “Americans shouldn’t have to choose between the safety net of unemployment benefits that they’ve paid into and the all-American opportunity to chase their entrepreneurial dream,” he said in a statement.
What small business founders should know
Even if the bill becomes law, SEA remains a state-level program. If your state does not currently offer one, you would need to wait for your state workforce agency to adopt it. The practical impact depends on how many states expand or create SEA programs under the modernized framework.
Founders who do not qualify for unemployment insurance in the first place would not benefit directly. And at up to 10% of beneficiaries, slots could still be limited during periods of high unemployment.
With House passage already in hand, the bill’s next test is the Senate. Business owners and aspiring founders who want to weigh in can track the legislation through their senators’ offices as it moves toward a committee vote.
