The National Association for the Self-Employed (NASE) and other small business organizations previously expressed a desire to see these types of programs extended and embraced by all 50 states; currently only Delaware, Maine, New Jersey, New York, Oregon, Pennsylvania, and Washington have adopted SEA programs. We have called upon Congress to help pass legislation that would assist all states in launching self-employment training programs for residents. These training programs should be available free to all unemployed citizens providing them with an avenue to create their own job, should they be unable to find one.

The changes in SEA include making available Federally-financed unemployment benefits to the program, additionally, the bill directs the Department of Labor and Small Business Administration to provide technical assistance to states that are interested in establishing the program. Perhaps the biggest incentive for states is the inclusion of $35 million dollars to help states administer the SEA program. Previously the state absorbed the costs of developing and maintaining the program.

In most cases, an individual must be eligible to receive regular unemployment insurance under State law. Those who have been permanently laid off from previous employment and are deemed by the State as likely to exhaust unemployment benefits are eligible to participate in the SEA program. Individuals may also be eligible even if they are already occupied by full-time self-employment activities, such as training, business counseling and technical assistance.

NASE hopes that states will embrace the SEA program and use the new funding streams to quickly implement a program that will translate into “real” opportunities for budding entrepreneurs to launch their businesses and become engines of economic growth.

NASE is a fervent supporter of federal small-business programs that have a proven track record of efficiently aiding very small businesses and the self-employed, such as the SBA Office of Advocacy, Small Business Development Centers and the SBA Microloan Program. We hope to add the SEA program to that list should it prove to be positive for business owners.

You can learn more about the program by visiting the Department of Labor website.

Call Photo via Shutterstock

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Congress passed a temporary reprieve of this minor quirk in the tax code that has a major effect on our nation’s smallest businesses when it passed the Small Business Jobs Act last fall. For the 2010 tax year, self-employed business owners are able to deduct the cost of their health care coverage, which will put about 15 percent of their premium back in their pocket. The average self-employed business owner, who pays about $3,000 a year in health insurance premiums or $6,300 for family coverage, will save $456 to $962 in taxes on this year’s deduction.

A large business might not notice such a relatively modest amount of extra cash on its books, but this is not an insignificant amount to a self-employed business owner. The temporary health care tax deduction could help pay for an extra phone line or fund some online advertising. It could be used to purchase new office equipment or pay for an energy efficient lighting upgrade. These are tangible benefits to small businesses that can help them stay competitive — and in business — in an economy that continues to shun robust recovery.

With the ups and downs of our current economy, this extra savings could be the extra help a struggling business owner needs. Approximately 23 million self-employed business owners across America are eligible to claim the temporary self-employed health care tax deduction this year.

But here’s the rub. Congress only gave self-employed business owners the 2010 tax year to claim this deduction. An overwhelming number of the potential beneficiaries of the deduction won’t be able to take advantage of the deduction because health coverage is a luxury they can’t currently afford. Self-employed business owners need Congress to make the deduction permanent and make the tax benefit of purchasing coverage fair to all business entities.

According to the latest available data, 23 million small business owners contribute nearly $1 trillion to our nation’s economy. What these businesses need is more than just lip service from President Obama and Congress, who both are proclaiming that it’s the small business community that will put our economy back on track. These businesses don’t need another major piece of legislation: Thoughtful tweaks to existing law will help small businesses stay afloat and expand.

The temporary self-employed health care tax deduction is a step in the right direction, but making it permanent is just one of the little fixes our policymakers can address to support the small business community.

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