Help—my unemployment benefits are running out!

Unemployment compensation was designed to provide income to people who lose their jobs. The problem is that benefits run out rather quickly. Your claim lasts one year (your benefit year), but most states only pay benefits for 13 to 26 weeks – a little more than six months – during the year.

During periods of high unemployment, the federal government may extend the benefit period, but at some point, benefits will stop.

If your unemployment insurance benefits are about to end, what happens next? Your options are limited. But if you prepare early, you can lessen the impact when benefits run out. Here are some routes to explore.

If unemployment is making you think it might make sense to start your own business, check whether your state has a Self-Employment Assistance Program or SEAP. This program allows people receiving unemployment benefits to get training in launching a business.

Most states don’t require people enrolled in an SEAP program to actively look for work; starting their own business is considered their full-time job, with many states requiring a full-time schedule devoted to training. SEAP members participate in entrepreneurial training programs, work with mentors and develop a business plan.

But SEAP isn’t an extension of unemployment benefits. In fact, you must be early enough in your benefit period to complete the training. You have to be receiving unemployment to be in SEAP, and some states don’t allow enrollment if don't have 13 more weeks of benefits left at the time you are accepted into the program.

Because SEAP is paid for by grants, not everybody qualifies. If you do meet the qualifications for the program, your state unemployment office will send you information. Given the time limitations, don't wait to be contacted. If you’re interested in the program, call your state unemployment office for more detailed information and eligibility requirements.

The SEAP program does not supply funding for the launch of your business, but any income you earn from your new enterprise will not be deducted from your unemployment check.

If you can’t find a traditional 9-to-5–style job, consider something different. Perhaps you have a skill that would allow you to earn money as a freelancer. Another strategy is to contact a temp agency in your area and take a temporary job. Seasonal employment – sales jobs during the holidays, for example – are a third option. Babysitting, tutoring or even websites such as TaskRabbit might provide work.

You can also try to train in new areas related to your previous career or start a business of your own, even if you can't get into a SEAP program. Some businesses, including consulting, cost very little to launch.

If your funds run low enough, you may be eligible for food or cash assistance. Eligibility varies, but both options are worth checking out to help you get through a difficult period in your life.

Food assistance. The term "food stamps" is no longer used – the program is now the Supplemental Nutrition Assistance Program or SNAP – but the basics are largely unchanged. SNAP is a federal program that provides assistance to low-income individuals and families. 

Check with your state for any other hunger-assistance programs in addition to SNAP, especially if you have young children.

Cash assistance. These programs, which provide cash payments and other services, are administered at the state level. For example, Massachusetts has the Transitional Aid to Families with Dependent Children (TAFDC) program.

There’s no shame in taking a job outside of your career path, especially if your unemployment benefits are running out. Plan for the termination of benefits long before that day arrives.