A bill has been introduced by CAMEO, an organization of micro businesses, to allow owners of start up businesses to collect unemployment. Currently it is required that people search for a job to collect unemployment. This would eliminate this requirement. EDD and the California Chamber most likely will oppose this.
The arguments for this is that start ups have a very difficult time obtaining capital. It is also argued that some of these businesses will create additional jobs helping the economy. This beyond the individuals starting the business.
If this is passed the Federal Government will provide $5.3 million. The cost for California is not clearly known but it has been estimated to be l $1.5 million or less.
The arguments against this is that unemployment should not be used to start a business and individuals should be looking for work in existing businesses. It is also argued that the program has no real oversight however the sponsor disputes this.
Small Business California has been asked by CAMEO to take a support position. What do you think?
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Small Business California
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