---
kind: "section"
citation: "38 C.F.R. § 21.257"
title: "38"
number: "21.257"
heading: "Self-employment."
url: "https://uscodex.org/cfr/38/21.257"
---

# §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](/cfr/38/21.50.md); and
  - (2) **The provisions of this section.**
- (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.
- (c) **Scope of self-employment benefits and services.**
  - (1) VA may provide the self-employment services listed in [paragraph (d)](#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)](#e) of this section to individuals with the most severe service-connected disability(ies) who require self-employment.
- (d) **Assistance for other individuals in self-employment.** Subject to the provisions of [§ 21.258](/cfr/38/21.258.md), 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](/cfr/38/21.252.md).
- (e) **Special self-employment services for individuals with the most severe service-connected disability(ies) who require self-employment.** Individuals described in [paragraph (b)](#b) of this section who are in a self-employment program may receive—
  - (1) The services described in [paragraph (d)](#d) of this section; and
  - (2) The assistance described in [§ 21.214](/cfr/38/21.214.md).
- (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.**

## Notes

### Amendments

[75 FR 3170, Jan. 20, 2010]

### Authority

Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in specific sections.

### Source

Source: 49 FR 40814, Oct. 18, 1984, unless otherwise noted.

### Amendments

[75 FR 3170, Jan. 20, 2010]