Lankford, Coons Introduce Bill to Help Unemployed Workers Start Small Businesses

OKLAHOMA CITY, OK - US Senators James Lankford (R-OK), Chris Coons (D-DE), and Jon Husted (R-OH) introduced the New Opportunities for Business Ownership and Self-Sufficiency (NO BOSS)Act recently, legislation that would modernize the Self-Employment Assistance (SEA) program so that laid off workers can more easily receive their normal allotment of unemployment insurance even while working full-time to start a new business.

Artificial intelligence (AI) will likely reshape America's economy and disrupt or displace jobs across many sectors. However, even as AI is expected to contribute to job losses, it will also lower barriers to entrepreneurship, making it easier than ever for workers to start a small business. The NO BOSS Act would ensure that workers experiencing a job transition don't have to sacrifice their unemployment insurance payments to pursue their entrepreneurial dreams.

Current law allows states to operate Self-Employment Assistance programs, which allow eligible unemployment insurance beneficiaries to continue receiving benefits while working full-time to launch a business rather than searching for traditional employment. However, outdated federal rules unnecessarily limit who can participate, leaving fewer workers with a meaningful opportunity to choose business ownership over traditional employment.

"If you lose your job, the government shouldn't tell you the only way forward is to go work for somebody else. Some folks have a business idea they've been dreaming about for years, and losing a job might be the push to finally chase it. Right now, an outdated federal rule forces people on unemployment to spend their time applying for jobs they don't want instead of building the business they do want. Our bill fixes that. If you're willing to put in the work to start a business, hire your neighbors, and build something in your community, we should cheer you on, not stand in your way," said Lankford.

"Every small business began with someone taking a chance on a new idea, and new AI tools will make it easier than ever to turn those ideas into business plans, sales, and storefronts," said Coons. "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. As artificial intelligence reshapes the nature of work, this bill will help support American entrepreneurs, keep food on families' tables, lift up small businesses, and keep our economy strong."

Background

The NO BOSS Act would update the SEA program by:

• Creating new opportunities for unemployment insurance beneficiaries and encouraging small business formation
• Eliminating the requirement that SEA beneficiaries must be "likely to exhaust benefits," which implies the program can only be used by workers unlikely to find another job
• Clarifying that developing a business plan and conducting market feasibility studies count as entrepreneurship work
• Making it easier for more states to establish SEA programs modeled on the most successful state programs

The bill is endorsed by the Center for American Entrepreneurship, the Foundation for American Innovation, the Small Business & Entrepreneurship Council, the R Street Institute, Shopify, Block, Bipartisan Policy Center Action, and the Coalition to Protect America's Small Sellers.

You can find the full text of the bill HERE.

###