In a non-covid world, your friend most likely would not have qualified for unemployment benefits as there would be no ''employment'' history - no payroll tax or unemployment insurance paid for the wages. Normally, those are the items the unemployment offices looks at to determine if you are eligible and how much your weekly benefit would be.
Sole-proprietors generally cannot collect unemployment unless they are incorporated and pay themselves a salary (S-corporation). Covid changed that but only temporarily.
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