§ 21.257 Self-employment. ( 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]