§ 21.257. Self-employment.
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/us/cfr/t38/s§ 21.257·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Approval of self-employment as a vocational goal. A program of vocational rehabilitation benefits and services may include self-employment for an individual if VA determines that such an objective is a suitable vocational goal. VA will make this determination based on---
(1)The results of the individual's initial evaluation conducted in accordance with the provisions of § 21.50; and
(2)The provisions of this section. (Authority: 38 U.S.C. 3104(a))
(b)Definition. For purposes of this subpart, individuals with the most severe service-connected disability(ies) who require self-employment means individuals who have been determined by VA to have limitations affecting employability arising from the effects of each individual's service-connected disability(ies), which are so severe as to necessitate selection of self-employment as the only reasonably feasible vocational goal for the individuals. (Authority: 38 U.S.C. 3104)
(c)Scope of self-employment benefits and services.
(1)VA may provide the self-employment services listed in paragraph
(d)of this section to program participants who are pursuing the vocational goal of self-employment.
(2)VA may provide the more extensive services listed in paragraph
(e)of this section to individuals with the most severe service-connected disability(ies) who require self-employment. (Authority: 38 U.S.C. 3104(a))
(d)Assistance for other individuals in self-employment. Subject to the provisions of § 21.258, VA may provide the following assistance to any individual for whom self-employment is determined to be a suitable vocational goal---
(1)Vocational training;
(2)Incidental training in the management of a business;
(3)License or other fees required for self-employment;
(4)Necessary tools and supplies for the occupation; and
(5)Services described in § 21.252. (Authority: 38 U.S.C. 3104(a))
(e)Special self-employment services for individuals with the most severe service-connected disability(ies) who require self-employment. Individuals described in paragraph
(b)of this section who are in a self-employment program may receive---
(1)The services described in paragraph
(d)of this section; and
(2)The assistance described in § 21.214. (Authority: 38 U.S.C. 3104, 3116, 3117)
(f)Feasibility analysis of a proposed self-employment business plan. VA will conduct a comprehensive review and analysis of the feasibility of a proposed business plan, as submitted by the individual or developed with VA's assistance, prior to authorizing a rehabilitation plan leading to self-employment (a "self-employment plan"). The feasibility analysis must include---
(1)An analysis of the economic viability of the proposed business;
(2)A cost analysis specifying the amount and types of assistance that VA will provide;
(3)A market analysis for the individual's proposed services or products;
(4)Availability of financing from non-VA sources, including the individual's personal resources, local banks, and other sources;
(5)Evidence of coordination with the Small Business Administration to secure special consideration under section 8 of the Small Business Act, as amended;
(6)The location of the site for the proposed business and the cost of the site, if any; and
(7)A training plan to operate a successful business. (Authority: 38 U.S.C. 3104) \[75 FR 3170, Jan. 20, 2010\]
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