To: Illinois Legislators
From: Small Business Advocacy Council
Date: March 10th 2025
Subject: Supporting Self-Employment Assistance (SEA) Programs to Drive Economic Growth

Introduction
Self-Employment Assistance (SEA) programs have proven to be a valuable tool in supporting unemployed individuals who seek to establish their own businesses. Several states, including New York, Oregon, Mississippi, and New Hampshire, have successfully incorporated SEA programs into their unemployment systems. By allowing eligible participants to receive unemployment benefits while working full-time on launching a business, SEA programs reduce reliance on traditional wage employment and promote entrepreneurial success. To foster job creation and economic resilience, we urge the Illinois legislature to support the development of an Illinois SEA program by passing SB1979 and HB3126.

The Success of SEA Programs
The U.S. Department of Labor and other credible research organizations have done extensive research on the impacts of Self-Employment Assistance programs. A pilot program initiated by the Department of Labor yielded positive results, with researchers concluding that SEA programs increase the likelihood of both self-employment and overall employment. (*1) A 2001 Department of Labor evaluation found that SEA program participants were 19 times more likely to become self-employed than eligible non-participants. (*2) Additionally, participants reported high levels of satisfaction with self-employment and the training received through the SEA program.

Self-Employment Assistance programs have proven to be beneficial in the states that have implemented them. A 2017 study done by the Department of Labor and Mathematica found that New York’s SEA program generated $536,937 in federal income taxes and $140,136 in state
income taxes in 2014 alone. (*3) In Oregon, SEA program participants contributed $10.5 million to the state’s economy by 2012, with 77% of SEA-supported businesses still operational a decade later. (*4) Similarly, New Hampshire’s SEA program, which has been running since 2013, has raised
an additional $10.55 million for the state, created 298 new jobs, and established 177 new businesses. (*5) This data presents a clear and compelling case: SEA programs do more than just help individuals achieve self-sufficiency — they strengthen local economies, boost tax revenue, and create sustainable businesses and jobs.

Conclusion
Self-Employment Assistance programs empower aspiring entrepreneurs, stimulate job creation, and generate significant economic returns. Incorporating such a program in the State of Illinois will help foster a more resilient workforce and strengthen local economies. We urge you to
support our legislative efforts that establish an Illinois Self-Employment Assistance program for the benefit of our small business community and state economyPost content here.