ployment assistance program, as described in 
paragraph (2), to provide for the payment of 
emergency unemployment compensation as self- 
employment assistance allowances to individuals 
who would otherwise satisfy the eligibility cri-
teria specified in subsection (b). 
‘‘(B) PAYMENT OF ALLOWANCES.—Subject 
to subparagraph (C), the self-employment as-
sistance allowance described in subparagraph 
(A) shall be paid to an eligible individual from 
such 
individual’s 
emergency 
unemployment 
compensation account, as described in section 
4002, and the amount in such account shall be 
reduced accordingly. 
‘‘(C) LIMITATION
ON
SELF-EMPLOYMENT 
ASSISTANCE FOR INDIVIDUALS RECEIVING EX-
TENDED COMPENSATION AND EMERGENCY UN-
EMPLOYMENT COMPENSATION.— 
‘‘(i) COMBINED ELIGIBILITY LIMIT.— 
Subject to clause (ii), for purposes of self- 
employment assistance programs estab-
lished under this subsection and section 
208 of the Federal-State Extended Unem-
ployment Compensation Act of 1970, an 
individual shall be provided with self-em-
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ployment assistance allowances under such 
programs for a total of not greater than 26 
weeks (referred to in this subsection as the 
‘combined eligibility limit’). 
‘‘(ii) CARRYOVER
RULE.—For pur-
poses of an individual who is participating 
in a self-employment assistance program 
established under this subsection and has 
not reached the combined eligibility limit 
as of the date on which such individual ex-
hausts all rights to extended compensation 
under this title, the individual shall be eli-
gible to receive self-employment assistance 
allowances under a self-employment assist-
ance program established under section 
208 of the Federal-State Extended Unem-
ployment Compensation Act of 1970 until 
such individual has reached the combined 
eligibility limit, provided that the indi-
vidual otherwise satisfies the eligibility cri-
teria described under title II of such Act. 
‘‘(2) DEFINITION OF ‘SELF-EMPLOYMENT AS-
SISTANCE PROGRAM’.—For the purposes of this sec-
tion, the term ‘self-employment assistance program’ 
means a program as defined under section 3306(t) 
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jlentini on DSK4TPTVN1PROD with BILLS
of the Internal Revenue Code of 1986, except as fol-
lows: 
‘‘(A) all references to ‘regular unemploy-
ment compensation under the State law’ shall 
be deemed to refer instead to ‘emergency unem-
ployment compensation under title IV of the 
Supplemental Appropriations Act, 2008’; 
‘‘(B) paragraph (3)(B) shall not apply; 
‘‘(C) clause (i) of paragraph (3)(C) shall 
be deemed to state as follows: 
‘‘ ‘(i) 
include 
any 
entrepreneurial 
training that the State or non-profit orga-
nizations may provide in coordination with 
programs of training offered by the Small 
Business Administration, which may in-
clude business counseling, mentorship for 
participants, access to small business de-
velopment resources, and technical assist-
ance; and’; 
‘‘(D) the reference to ‘5 percent’ in para-
graph (4) shall be deemed to refer instead to ‘1 
percent’; and 
‘‘(E) paragraph (5) shall not apply. 
‘‘(3) AVAILABILITY OF SELF-EMPLOYMENT AS-
SISTANCE
ALLOWANCES.—In the case of an indi-
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vidual who is eligible to receive emergency unemploy-
ment compensation payment under this title, such 
individual shall not receive self-employment assist-
ance allowances under this subsection unless the 
State agency has a reasonable expectation that such 
individual will be entitled to at least 13 times the in-
dividual’s average weekly benefit amount of extended 
compensation and emergency unemployment com-
pensation. 
‘‘(4) PARTICIPANT OPTION TO TERMINATE PAR-
TICIPATION IN SELF-EMPLOYMENT ASSISTANCE PRO-
GRAM.— 
‘‘(A) TERMINATION.—An individual who is 
participating in a self-employment assistance 
program established under this subsection may 
elect to discontinue participation in such pro-
gram at any time. 
‘‘(B) CONTINUED ELIGIBILITY FOR EMER-
GENCY UNEMPLOYMENT COMPENSATION.—For 
purposes of an individual whose participation in 
the self-employment assistance program estab-
lished under this subsection is terminated pur-
suant to paragraph (1)(C) or who has discon-
tinued participation in such program, if the in-
dividual continues to satisfy the eligibility re-
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jlentini on DSK4TPTVN1PROD with BILLS
quirements for emergency unemployment com-
pensation under this title, the individual shall 
receive emergency unemployment compensation 
payments with respect to subsequent weeks of 
unemployment, to the extent that amounts re-
main in the account established for such indi-
vidual under section 4002(b) or to the extent 
that such individual commences receiving the 
amounts described in subsections (c), (d), or (e) 
of such section, respectively.’’. 
SEC. 3. GRANTS FOR SELF-EMPLOYMENT ASSISTANCE PRO-
GRAMS. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT
OR
IMPROVED
ADMINIS-
TRATION.—Subject to the requirements established 
under subsection (b), the Secretary shall award 
grants to States for the purposes of— 
(A) improved administration of self-em-
ployment assistance programs that have been 
established, prior to the date of enactment of 
this Act, pursuant to section 3306(t) of the In-
ternal Revenue Code of 1986 (26 U.S.C. 
3306(t)), for individuals who are eligible to re-
ceive regular unemployment compensation; 
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(B) development, implementation, and ad-
ministration of self-employment assistance pro-
grams that are established, subsequent to the 
date of enactment of this Act, pursuant to sec-
tion 3306(t) of the Internal Revenue Code of 
1986, for individuals who are eligible to receive 
regular unemployment compensation; and 
(C) development, implementation, and ad-
ministration of self-employment assistance pro-
grams that are established pursuant to section 
208 of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 or section 
4001(h) of the Supplemental Appropriations 
Act, 2008, for individuals who are eligible to re-
ceive extended compensation or emergency un-
employment compensation. 
(2) PROMOTION
AND
ENROLLMENT.—Subject 
to the requirements established under subsection (b), 
the Secretary shall award additional grants to States 
that submit approved applications for a grant under 
paragraph (1) for such States to promote self-em-
ployment assistance programs and enroll unem-
ployed individuals in such programs. 
(b) APPLICATION AND DISBURSAL.— 
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(1) APPLICATION.—Any State seeking a grant 
under paragraph (1) or (2) of subsection (a) shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
is determined appropriate by the Secretary. In no 
case shall the Secretary award a grant under this 
section with respect to an application that is sub-
mitted after December 31, 2013. 
(2) NOTICE.—Not later than 30 days after re-
ceiving an application described in paragraph (1) 
from a State, the Secretary shall notify the State 
agency as to whether a grant has been approved for 
such State for the purposes described in subsection 
(a). 
(3) CERTIFICATION.—If the Secretary deter-
mines that a State has met the requirements for a 
grant under subsection (a), the Secretary shall make 
a certification to that effect to the Secretary of the 
Treasury, as well as a certification as to the amount 
of the grant payment to be transferred to the State 
account in the Unemployment Trust Fund under 
section 904 of the Social Security Act (42 U.S.C. 
1104). The Secretary of the Treasury shall make the 
appropriate transfer to the State account not later 
than 7 days after receiving such certification. 
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(c) ALLOTMENT FACTORS.—For purposes of allot-
ting the funds available under subsection (d) to States 
that have met the requirements for a grant under this sec-
tion, the amount of the grant provided to each State shall 
be determined based upon the percentage of unemployed 
individuals in the State relative to the percentage of unem-
ployed individuals in all States. 
(d) AUTHORIZATION.—For purposes of carrying out 
the grant program under this section, there is authorized 
to be appropriated $35,000,000 for each of fiscal years 
2012 through 2014. 
SEC. 4. ASSISTANCE AND GUIDANCE IN IMPLEMENTING 
SELF-EMPLOYMENT ASSISTANCE PROGRAMS. 
(a) MODEL LANGUAGE AND GUIDANCE.—For pur-
poses of assisting States in establishing, improving, and 
administering self-employment assistance programs, the 
Secretary shall— 
(1) develop model language that may be used 
by States in enacting such programs, as well as peri-
odically review and revise such model language; and 
(2) provide technical assistance and guidance in 
establishing, improving, and administering such pro-
grams. 
(b) REPORTING AND EVALUATION.— 
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(1) REPORTING.—The Secretary shall establish 
reporting requirements for States that have estab-
lished self-employment assistance programs, which 
shall include reporting on— 
(A) the total number of individuals who re-
ceived unemployment compensation and— 
(i) were referred to a self-employment 
assistance program; 
(ii) participated in such program; and 
(iii) received an allowance under such 
program; 
(B) the total amount of allowances pro-
vided to individuals participating in a self-em-
ployment assistance program; 
(C) the total income (as determined by 
survey or other appropriate method) for busi-
nesses that have been established by individuals 
participating in a self-employment assistance 
program, as well as the total number of individ-
uals employed through such businesses; and 
(D) any additional information, as deter-
mined appropriate by the Secretary. 
(2) EVALUATION.—Not later than 5 years after 
the date of enactment of this Act, the Secretary 
shall submit to Congress a report that evaluates the 
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effectiveness of self-employment assistance programs 
established by States, including— 
(A) an analysis of the implementation and 
operation of self-employment assistance pro-
grams by States; 
(B) an evaluation of the economic out-
comes for individuals who participated in a self- 
employment assistance program as compared to 
individuals who received unemployment com-
pensation and did not participate in a self-em-
ployment assistance program, including a com-
parison as to employment status, income, and 
duration of receipt of unemployment compensa-
tion or self-employment assistance allowances; 
and 
(C) an evaluation of the state of the busi-
nesses started by individuals who participated 
in a self-employment assistance program, in-
cluding information regarding— 
(i) the type of businesses established; 
(ii) the sustainability of the busi-
nesses; 
(iii) the total income collected by the 
businesses; 
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(iv) the total number of individuals 
employed through such businesses; and 
(v) the estimated Federal and State 
tax revenue collected from such businesses 
and their employees. 
(c) FLEXIBILITY AND ACCOUNTABILITY.—The model 
language, guidance, and reporting requirements developed 
by the Secretary under subsections (a) and (b) shall— 
(1) allow sufficient flexibility for States and 
participating individuals; and 
(2) ensure accountability and program integ-
rity. 
(d) CONSULTATION.—For purposes of developing the 
model language, guidance, and reporting requirements de-
scribed under subsections (a) and (b), the Secretary shall 
consult with employers, labor organizations, State agen-
cies, and other relevant program experts. 
(e) ENTREPRENEURIAL TRAINING PROGRAMS.—The 
Secretary shall utilize resources available through the De-
partment of Labor and coordinate with the Administrator 
of the Small Business Administration to ensure that ade-
quate funding is reserved and made available for the provi-
sion of entrepreneurial training to individuals partici-
pating in self-employment assistance programs. 
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(f) SELF-EMPLOYMENT ASSISTANCE PROGRAM.— 
For purposes of this section, the term ‘‘self-employment 
assistance program’’ means a program established pursu-
ant to section 3306(t) of the Internal Revenue Code of 
1986 (26 U.S.C. 3306(t)), section 208 of the Federal- 
State Extended Unemployment Compensation Act of 
1970, or section 4001(h) of the Supplemental Appropria-
tions Act, 2008, for individuals who are eligible to receive 
regular unemployment compensation, extended compensa-
tion, or emergency unemployment compensation. 
SEC. 5. PROGRAMS OF THE SMALL BUSINESS ADMINISTRA-
TION. 
(a) REPEAL OF AUTHORITY FOR THE PROGRAM FOR 
INVESTMENT IN MICROENTREPRENEURS.— 
(1) REPEAL.—Subtitle C of title I of the Riegle 
Community Development and Regulatory Improve-
ment Act of 1994 (15 U.S.C. 6901 et seq.) is re-
pealed. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall affect any grant or assistance pro-
vided under subtitle C of title I of the Riegle Com-
munity Development and Regulatory Improvement 
Act of 1994 (15 U.S.C. 6901 et seq.) before the 
date of enactment of this Act, and any such grant 
or assistance shall be subject to such subtitle C, as 
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in effect on the day before the date of enactment of 
this Act. 
(b) LOAN MODERNIZATION AND ACCOUNTING SYS-
TEM; SPECIAL PURPOSE COUNSELING GRANTS.— 
(1) FUNDING.—Of the amounts made available 
under the Continuing Appropriations Act, 2012, for 
the appropriations account appropriated under the 
heading ‘‘SALARIES
AND EXPENSES’’ under the 
heading 
‘‘SMALL 
BUSINESS 
ADMINISTRA-
TION’’— 
(A) not more than $7,100,000 may be ex-
pended for the Loan Modernization and Ac-
counting System; and 
(B) $5,100,000 is rescinded. 
(2) TERMINATION OF PROGRAM.—The Adminis-
trator of the Small Business Administration shall 
terminate the Special Purpose Counseling Grant 
program under section 21 of the Small Business Act 
(15 U.S.C. 648). 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(2) 
STATE; 
STATE
AGENCY.—The 
terms 
‘‘State’’ and ‘‘State agency’’ have the meanings 
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given such terms under section 205 of the Federal- 
State Extended Unemployment Compensation Act of 
1970 (26 U.S.C. 3304 note). 
Æ 
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