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For the purposes of this chapter, the term “self-employment assistance program” means a program under which—
(1)
individuals who meet the requirements described in paragraph (3) are eligible to receive an allowance in lieu of regular unemployment compensation under the State law for the purpose of assisting such individuals in establishing a business and becoming self-employed;
the allowance payable to individuals pursuant to paragraph (1) is payable in the same amount, at the same interval, on the same terms, and subject to the same conditions, as regular unemployment compensation under the State law, except that—
(A) State requirements relating to availability for work, active search for work, and refusal to accept work are not applicable to such individuals;
(B) State requirements relating to disqualifying income are not applicable to income earned from self-employment by such individuals; and
(C) such individuals are considered to be unemployed for the purposes of Federal and State laws applicable to unemployment compensation,
as long as such individuals meet the requirements applicable under this subsection;
individuals may receive the allowance described in paragraph (1) if such individuals—
(A) are eligible to receive regular unemployment compensation under the State law, or would be eligible to receive such compensation except for the requirements described in subparagraph (A) or (B) of paragraph (2);
(B) are identified pursuant to a State worker profiling system as individuals likely to exhaust regular unemployment compensation; and
(C) are participating in self-employment assistance activities which— (i) include entrepreneurial training, business counseling, and technical assistance; and (ii) are approved by the State agency; and
(D) are actively engaged on a full-time basis in activities (which may include training) relating to the establishment of a business and becoming self-employed;
the aggregate number of individuals receiving the allowance under the program does not at any time exceed 5 percent of the number of individuals receiving regular unemployment compensation under the State law at such time;