Quitting unemployment to start a small business -- advice/encouragement needed!

Hello,
I lost my job in April and have been collecting unemployment since the beginning of June. I'm in a field where there are few jobs available (I've sent out more than 150 resumes/applications/e-mail inquiries and so far have had just one response, and it was a rejection) and don't anticipate that changing anytime soon, so I'm hoping to start my own small business. (It's something I've been thinking about for a long time anyway, and this seems like a good opportunity to make it happen.) I'd rather not give away the details, but I've been doing the research and think it could be pretty successful. It's service-based (no products) and I won't need to rent any sort of office space, so my startup costs will be pretty low. I've done the research and the holiday season could be quite profitable for me, so I'd love to get started asap.

Here's the problem: In order to start a business, I have to stop receiving unemployment payments. (I'm in New York and have looked into the SEAP program, but it takes a loooong time and a lot of hoop-jumping to get approved, so I wouldn't be able to have my business up and running in time for the holidays). I'm okay with giving up the unemployment (the $354 a week hardly makes a dent in my $2100 rent anyway!) but I'm wondering if anyone has suggestions for how to fund my startup and keep my bills paid until I get my business up and running?

I currently only have about a month of rent and expenses left in savings, so I can't depend on that alone to keep me afloat. I've been borrowing rent money from my parents, but my dad was also laid off recently and I can't depend on their help anymore. Are there other ways for me to finance my small business? I have excellent credit but no collateral and lots of student loan debt, so I don't know if a bank is going to give me a loan. Is a personal loan from an individual the way to go, and if so, how do I go about pursuing this?

By the way, I'm still actively looking for jobs, but they're incredibly scarce, so "get a job and save up money to start your business" really isn't a realistic option. I honestly think this small business will be my way out of unemployment, but I need to figure out how to secure the money to start it and cover my expenses until I start turning a profit.

Advice?