If you’re disabled, retired, or no longer have a position at your employer’s business, you might be surprised that the government can help you transition to becoming self-employed. The government creates financial loan programs and easy access to counseling, training, and mentoring programs as a way to support the economy and create jobs.

If self-employment or starting your own small business has piqued your interest, you can learn how to manage that financially while taking advantage of self-employment road maps that will take you to where you want to be.

Small Business Administration (SBA) Programs

The SBA helps fund small businesses and partners with nonprofit small business development centers nationwide. Small business owners can access counseling, training, and mentoring resources through these development centers.

SBA-Guaranteed Business Loans

You can go to an SBA-approved lender, which may be a bank with which you already conduct business, and apply for up to $5 million for your business. An SBA-guaranteed loan means that the SBA guarantees the lender that they will repay the loan if it defaults. You can ask about a 7(a) loan that can provide you with business funds to use in the following ways:

• Purchasing and installing machinery and equipment
• Short- and long-term working capital
• Refinancing business debt
• Procuring furniture, fixtures, and supplies

Microloans are also available for up to $50,000 for the same uses, except you won’t be able to pay off existing debt. You’ll only be able to use it for business-related purchases or working capital.

Small Business Development Centers (SBDC)

Starting a small business comes with its own challenges that you should know about and learn to navigate. National associations and nonprofit organizations provide free or low-cost counseling, training, and mentoring to prepare you for those challenges and provide resources to help you through them. Some organizations that the SBA partners with include:

• Women’s Business Centers
• Veterans Business Outreach Center program (VBOC)
• SCORE Business mentoring

In addition to providing workshops, training, counseling, and mentoring opportunities, the VBOC also offers transition assistance programs to help military personnel and their spouses transition from military to civilian life. SCORE is a network of volunteer, expert business mentors that provide financial, human resources, or business planning advice at no cost.

U.S. Department of Labor Programs

The Department of Labor is another government entity with programs to help the transition from employment to self-employment. When you’ve become unemployed or disabled, the DOL encourages self-employment as an option. They provide resources through the SEA and the Office of Disability.

The Self-Employment Assistance Program (SEA)

Rather than receiving unemployment benefits, states pay a self-employment benefit to help former employees transition to self-employment while establishing their businesses. The DOL offers this program to encourage people to start small businesses, which can create two or three more jobs.

However, because this is a voluntary program that states can elect to participate in, not all states have this program available for their residents. Currently, the only states that have established active self-employment assistance programs are Delaware, Mississippi, New Hampshire, New York, and Oregon.

Office of Disability

This arm of the DOL introduces individuals with disabilities to the possibility of self-employment. Individuals with disabilities can earn an income with a small business and have control over their work hours and tasks that they can do that traditional employment may not offer. On the Office of Disability Employment Policy webpage, you can find links to resources such as the SBA, SBDC, and other resources and guides that will help you on the path of self-employment.

Take Advantage of Government Programs to Start Your Small Business

You may find comfort in knowing that self-employment is an option if you somehow find yourself outside of traditional employment. Government programs and resources allow you to plunge into self-employment with financial safety nets and guidance through challenges that your small business will present. When you take advantage of these resources, your small business will be a source of income for years to come.