Self-employment.

§ 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]