Current through Register Vol. 63, No. 12, December 1, 2024
(1) Subject to the conditions
provided under this rule, Commission may provide financial support to
clients for funding self-employment business ventures. Clients who
are entering the Business Enterprise Program do not meet the federal
definition of self-employment under the Rehabilitation Act and are
not subject to the requirements of this rule.
(2) The following definitions apply
to this rule:
(a) "Equipment" means
an item that is determined necessary for the individual's employment
goal.
(b) "PASS" means
Plan to Achieve Self-Support;
(c) "SBA" means the U.S. Small
Business Administration;
(d) "SBDC" means Small Business
Development Centers;
(3) The following basic criteria
apply to this rule:
(a) A client
must intend to establish or run a business to become financially
independent. Financial support will only be available to establish or
run a business that may reasonably be expected to provide income to
the client, commensurate with the individual's strengths, abilities,
capabilities and interests.
(A)
Commission will not fund "hobby" businesses. A "hobby" business is
defined as one that is casual or recreational in nature with no
intention of earning income at or above a living wage; also referred
to as a "not for profit" business.
(B) Commission will not fund
businesses designated as tax-exempt by the Internal Revenue Services
(IRS); also referred to as a "non-profit"
business.
(b)
If a client is involved with a business partnership, limited
liability corporation (LLC) or corporation, they must present written
evidence of being the controlling partner or controlling shareholder
of the corporation. A provision in the Partnership Agreement must be
made for the client to settle all debts should the business not
succeed. Commission will assume no financial liability for debts
incurred by the business partnership, LLC or corporation.
(c) Speculative or high-risk
business ventures will not be considered by Commission. These include
those which present a risk beyond the control of the business owner
or those which are so subject to economic whims as to have an
unpredictable future.
(d)
The client must present documentary evidence to indicate that a
reasonable effort has been made to obtain comparable financial
support, when available. Evidence must include one or more of the
following: application and rejection from a lending institution, PASS
benefits sheet, request for investments, or list of personal assets
to be used for the business.
(A) If
financial support from another source(s) is identified to fund the
business in part or in whole, a request to obtain financial support
from that source(s) should be made before requesting financial
support from Commission. If the request was denied because of an
insufficient business plan, the client must revise the plan and
resubmit it to the funding source.
(B) Where partial financial support
is obtained elsewhere, the client must submit copies of the relevant
documentation to identify the extent of that financial
support.
(C) Where denial
of financial support outside of Commission is based on the
availability of personal or family resources, the client will be
expected to utilize those resources before requesting agency funding
support.
(D) When no
comparable financial benefits or services are available, Commission
may fund reasonable and necessary start-up costs for a business as
part of a client's IPE. In order for a plan to be viable, other
funding sources may be necessary to cover costs identified in the
business plan that would not be covered by
Commission.
(4) A client seeking financial
support from Commission to become involved in a self-employment
business venture must complete a comprehensive assessment.
(a) Commission will provide or
arrange for an assessment by Commission staff or by competent
business persons outside of Commission to assess the business skills,
background, and potential of the client seeking financial support.
Portions of the assessment may be conducted by business persons, such
as a representative of the Oregon Small Business Development
Center.
(b) The
comprehensive assessment will cover the following:
(A) Evaluation of previous work
experience, especially in the same or a similar industry to the
proposed business or in other self-employment;
(B) Understanding of other career
options and availability of jobs in the present and future job
market;
(C)
Communications skills necessary in the proposed business (written and
verbal skills, along with capability to maintain and interpret
financial records for the business);
(D) Factors such as willingness to
make personal financial investment in the business, ability to make
appropriate decisions, dependability, follow-through, organizational
ability, adequate travel skills as demonstrated by interaction with
agency personnel and former business colleagues;
(E) Alternative skills of blindness
adequate to function in the business; knowledge of technology,
adaptive technology and software applications currently being used in
the management of similar businesses;
(F) Demonstration of money/resource
management skills consistent with running a viable small business;
and
(G) Background or
training in financial management skills required for managing a
self-owned business.
(c) Where the comprehensive
assessment results indicate that a client lacks some of the skills
necessary for successful business management, Commission may make
available and require training in those specific skill areas,
especially the alternative skills dealing with blindness and
financial management skills.
(5) The client must prepare a
well-researched and written comprehensive business plan such as that
required by a bank or the SBA. The client may seek assistance in
developing a business plan from outside sources, such as the SBA or
the SMDC at community colleges.
(a)
The plan must include an itemized list of equipment or
business-related expenses which the client requests Commission
provide.
(b) The client
must make a formal presentation of the plan to Commission. If the
plan is accepted, the decisions made will lead to the development or
amendment of the IPE. Any support by Commission must be a part of an
agreed upon IPE.
(c) If
the total request for financial support and technical assistance for
business startup is less than $3,500, the client's vocational
rehabilitation counselor may not require a formal business plan.
However, in providing assistance less than $3,500, there still should
be sufficient evidence that the business is viable. Financial support
for business startup purposes must be clearly documented.
(d) Requests for financial support
for an existing business, which exclusively involve adaptive
equipment, may require documentation of the viability of the business
rather than a formal business plan. Documentation may include one or
more of the following: customer invoices, sales receipts, recent tax
returns, or business financial statements.
(A) Vocational rehabilitation
services for qualified individuals seeking assistance with an
existing business may be provided under the following circumstances:
(i) The existing business is
consistent with the individual's unique strengths, resources,
priorities, concerns, abilities, capabilities, career interests, and
informed choice;
(ii)
Disability-related barriers to work, as identified by the client in
consultation with their counselor, affect the individual's ability to
continue operating this business; and
(iii) Without vocational
rehabilitation intervention, the individual will not be able to
continue operating the business.
(B) Commission will not provide
vocational rehabilitation services to a client solely to expand or
update an existing business, including situations to make a business
profitable, if there are no disability-related barriers. If an
individual is requesting a service such as this, the client's
counselor may provide the client with references for alternative
community resources that the individual may seek out.
(C) Vocational rehabilitation
services and the client's IPE will be designed to address disability
specific barriers. The client's business plan also must address those
barriers that make the business unsuitable.
(i) In the event the barriers
cannot be removed, the business will not be supported by Commission
and alternate goals should be explored by the client with the aid of
their counselor.
(ii) In
the event the client's business goal is viable, vocational
rehabilitation services may be provided in order to make the business
suitable.
(6) Financial support for any
service provided under an IPE is contingent upon the availability of
funds to Commission. Financial support should not place a burden on
Commission's resources to the extent that Commission would be unable
to provide services to other clients.
(7) A client who receives financial
support or services from Commission to fund their business venture
must provide timely, at a minimum semi-annually, financial statements
and other documentation as requested by Commission showing progress
toward becoming financially independent. Examples of documentation
include, but are not limited to: business bank statements,
profit/loss statements against business plan projections, progress
against planned startup activities, and marketing plan execution.
(a) Commission's support is
designed to assist in the initial startup of a business; it is not to
be considered an ongoing resource, and in no case will business
losses be reimbursed by Commission.
(b) Development of a comprehensive
business plan is expected to adequately capitalize the business and
limit the need for ongoing financial support by
Commission.
(8)
Any equipment for the business must be purchased in accordance with
Commission's equipment policy provided for under OAR Chapter 585,
Division 20.
(a) Under the criteria
in OAR 585-020-0060, ownership of equipment may be transferred to the
client. The client's counselor will determine appropriateness of this
action. Regardless of ownership, the client is responsible for
adequately maintaining the equipment.
(b) Any equipment whose title is
not passed to the client will be returned to the agency when it is no
longer required for the purpose for which it was
procured.
Statutory/Other Authority: ORS
346.150 & ORS
346.180
Statutes/Other Implemented: ORS
346.180