Laid off and dreaming about a startup idea? There may be a silver lining behind that pink slip. Some state unemployment offices have a program to help recently unemployed workers go from employee to entrepreneur.

People in select states who qualify for unemployment benefits might be eligible to join a Self-Employment Assistance program, or SEAP, instead. These programs generally provide weekly benefits similar to standard unemployment along with opportunities for entrepreneurial training. The goal is to help you create your own new business instead of finding a job somewhere else.

The federal government set the foundation for these programs within the 1993 NAFTA bill—but it’s up to each participating state to run its own version of the program. Not every state participates, and some states that used to have programs no longer do.

Founder Brew reached out to unemployment offices in all 50 states and Washington, DC. State officials in Oregon, Washington, Mississippi, New York, and New Hampshire confirmed to Founder Brew that they have active Self-Employment Assistance programs, though specific names vary slightly state to state. Other states confirmed they had no active program or did not respond.

What makes SEAP different from unemployment

Joining typically unlocks advantages unavailable to people who file for regular unemployment benefits. For instance, unemployment insurance recipients in some states have to submit proof of active job hunting.

As of 2026, there’s no need to look for other jobs while collecting benefits if you’re accepted into one of those active programs. During that time, you can focus on creating a company instead of redoing your résumé.

There are also some state-based educational opportunities that are designed to help walk entrepreneurs through the steps of creating a company. For instance, New York requires participants to partake in 20 hours of entrepreneurial training and have two face-to-face meetings with a business counselor.

In addition, these states allow you to keep your benefits even if your company starts making money. So if you start booking clients in your first few months, you can hold on to both sources of income.

Who should apply and who gets approved

The first step is to qualify for regular unemployment benefits. Then, if your state offers such a program, you can apply.

Acceptance isn’t automatic. In Washington, for instance, applicants are approved based on a formula that evaluates candidates using factors like educational level, residence, and occupation. Other states have similar criteria.

Gary Long, a supervisor for the Washington program, explained, “the range of ages and experience and personal characteristics is all over the board” in his state.

Some approved occupations in Washington this year include project management specialist, computer and information systems manager, business operations specialist, and urban and regional planner, according to Long.

The most important factor is whether someone “will find a replacement job before exhausting their benefits,” Long explained. If the state thinks that someone is in a high-demand career and likely to land another role, they may not be approved for the program. These standards are also updated consistently by regional economists and workforce development councils and can change according to current events, Long said.