New Opportunities for Business Ownership and Self-Sufficiency Act
Summary
The "New Opportunities for Business Ownership and Self-Sufficiency Act" aims to modify the rules governing state administration of self-employment assistance programs under the Internal Revenue Code of 1986. The bill seeks to eliminate the requirement that participants are likely to exhaust regular unemployment compensation. It also modifies participation requirements and adjusts the limitation on the number of individuals participating in such programs, increasing it from 5% to 10%.
Expected Effects
The act is expected to broaden access to self-employment assistance programs. This will allow more individuals to pursue entrepreneurial ventures while receiving unemployment benefits. The changes aim to streamline the process and encourage self-sufficiency through business ownership.
Potential Benefits
- Increased opportunities for individuals to start their own businesses.
- Expanded access to entrepreneurial training and business counseling.
- Greater flexibility in program participation through approved business plans.
- Potential for reduced reliance on traditional unemployment benefits.
- Support for economic growth through new business creation.
Potential Disadvantages
- Potential for increased costs to state unemployment systems.
- Risk of misuse of funds if oversight is inadequate.
- Possible displacement of traditional employment opportunities.
- Uncertainty regarding the long-term success rate of assisted businesses.
- Delayed implementation due to the two-year effective date and regulatory process.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause, as it aims to promote economic opportunity and self-sufficiency. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The modifications to unemployment assistance programs fall under this purview.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).