Senators Coons, Lankford introduce bill to help unemployed workers start small businesses

WASHINGTON - U.S. Senators Chris Coons (D-Del.), James Lankford (R-Okla.), and Jon Husted (R-Ohio) introduced the New Opportunities for Business Ownership and Self-Sufficiency (NO BOSS) Act today, legislation that would modernize the Self-Employment Assistance (SEA) program so that laid off workers can more easily receive their normal unemployment insurance even while working full-time to start a new business.

Artificial intelligence 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 SEA 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 However, outdated federal rules unnecessarily limit who can participate, leaving fewer workers with a meaningful opportunity to choose business ownership over traditional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.

"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 Senator 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."

"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 Right now, an outdated federal rule forces people on unemployment to spend their time applying for jobs they don't want instead of building the business they do want.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 Senator Lankford.

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, Small Business & Entrepreneurship Council, the R Street Institute, Shopify, Block, the Bipartisan Policy Center Action, and the Coalition to Protect America's Small Sellers.

"More Americans want to build something of their own than ever before, but too many can't get past the cost and red tape of just starting. That's the real shame, because 90% of entrepreneurs say they'd do it again if given the choice. The NO BOSS Act would tear down the hurdles standing between people and their ideas, making entrepreneurship a real choice for anyone, not just the ones who already have a safety net," said Alexandra Clark, Shopify vice president of public affairs.

"The American economy continues to evolve rapidly. According to our research on the Rise of the Modern Earner Economy, approximately a third of Americans - 117 million people - are now earning income from multiple sources, and a growing number of adults, especially younger, Gen Z workers, are seeking out opportunities to become independent entrepreneurs. At Block, we're committed to understanding the needs of modern earners and creating tools to help underserved populations achieve success in today's vibrant economy. We're proud to support the bipartisan NO BOSS Act, as it's a desperately needed step to help ensure federal policy keeps pace with changing realities for the American worker," said Melissa Netram, US public policy and government affairs, Block.

"New business filings and interest remain healthy, but Congress can help turn more of these entrepreneurial intentions into business launches by advancing practical reforms and measures that provide support to individuals through the transition period and time it takes to get a business off the ground. The NO BOSS Act provides such support," said Karen Kerrigan, Small Business & Entrepreneurship Council president & CEO.

"Entrepreneurs and the new businesses they launch are disproportionately responsible for the innovations that drive economic growth and account for virtually all net new job creation," said John Dearie, president of the Center for American Entrepreneurship. "The NO BOSS Act will improve and modernize UI by leveraging the power of entrepreneurship. The bill is a powerfully pro-innovation and pro-entrepreneurship reform to an important aspect of America's employment policy apparatus. CAE thanks Senators Chris Coons (D-DE) and James Lankford (R-OK) for their leadership and looks forward to working with them to ensure swift passage of the legislation."

"The NO BOSS Act is a commonsense proposal that empowers workers, improves our social safety net, and creates new opportunities. While self-employment rates and business start up rates remain lower than they were 30 years ago, the post-pandemic period has seen a movement towards more people pursuing their dreams and starting new businesses. This proposal can help the nation continue this positive momentum. The R Street Institute is pleased to support it," said Eli Lehrer, R Street Institute president.

"It has never been easier for one person with a good idea to start a business - but outdated restrictions still stand in the way. The NO BOSS Act removes these obstacles so more Americans can work for themselves," said Luke Hogg, Foundation for American Innovation senior fellow.

The text of the bill is available here.