1. (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. (1) The results of the individual's initial evaluation conducted in accordance with the provisions of § 21.50; and

   2. (2) The provisions of this section.

      (Authority: 38 U.S.C. 3104(a))

2. (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)

3. (c) Scope of self-employment benefits and services.

   1. (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. (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))

4. (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. (1) Vocational training;
   2. (2) Incidental training in the management of a business;
   3. (3) License or other fees required for self-employment;
   4. (4) Necessary tools and supplies for the occupation; and

   5. (5) Services described in § 21.252.

      (Authority: 38 U.S.C. 3104(a))

5. (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. (1) The services described in paragraph (d) of this section; and

   2. (2) The assistance described in § 21.214.

      (Authority: 38 U.S.C. 3104, 3116, 3117)

6. (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. (1) An analysis of the economic viability of the proposed business;
   2. (2) A cost analysis specifying the amount and types of assistance that VA will provide;
   3. (3) A market analysis for the individual's proposed services or products;
   4. (4) Availability of financing from non-VA sources, including the individual's personal resources, local banks, and other sources;
   5. (5) Evidence of coordination with the Small Business Administration to secure special consideration under section 8 of the Small Business Act, as amended;
   6. (6) The location of the site for the proposed business and the cost of the site, if any; and

   7. (7) A training plan to operate a successful business.

      (Authority: 38 U.S.C. 3104)

[75 FR 3170, Jan. 20, 2010]