Self-Employment Opportunity Act of 1987

Self-Employment Opportunity Act of 1987 - Provides for a demonstration program in which at least five, but not more than ten, States would be permitted to provide unemployment compensation to individuals for the purpose of funding self-employment.

Sets forth factors that the Secretary must consider in selecting States for such program.

Requires program agreements to provide that: (1) each eligible individual, for a three-year benefit period, shall be entitled to receive adjustment assistance in the form of self-employment allowances; and (2) such individual shall not be eligible to receive extended or other additional compensation with respect to such benefit year or regular compensation if the State makes payment in lieu of regular compensation.

Makes eligible with respect to any benefit year, for purposes of this Act, any individual who: (1) is eligible to receive regular compensation under the State law during such benefit year; (2) submits an application to the State agency for a self-employment allowance under this Act; and (3) meets applicable State requirements. Limits the number of individuals who may be considered as eligible individuals for during a given year.

Provides that the aggregate amount of a self-employment allowance for any individual for any benefit year shall be equal to the maximum amount of regular, extended, or other additional compensation which would be payable to such individual for such benefit year.

Permits eligible individuals to file applications for self-help allowances with State agencies responsible for administering agreements under this Act.

Requires a State to pay a self-help allowance on a weekly basis. Prohibits a State from offering self-employment allowances unless it is implementing a program that is approved by the Secretary and designed to select and assist individuals for self-employment, monitor such employment, and provide for a complete evaluation of the use of such allowances.

Provides that State and Federal requirements relating to availability for work, active search for work, or refusal to accept suitable work shall not apply to an individual receiving a self-employment allowance under this Act as long as such individual is self-employed.

Provides for payments to States of amounts equal to the Federal share of each payment (other than administrative expenses) made by the State agency on account of self-employment allowances provided under this Act.

Permits States to make payments (exclusive of administrative expenses) from State unemployment funds for adjustment assistance provided under this Act.

Directs the Secretary to submit to the Congress: (1) within two years after enactment of this Act, an interim report on the effectiveness of such demonstration program; and (2) within four years after such enactment, a final report on such program.

Sets forth provisions relating to fraud and overpayments.

Excludes activities taken by a State pursuant to an agreement under this Act from being taken into consideration in determining whether there has been a net decrease in the solvency of the State unemployment compensation program.