Division Policy 2.10
February 1, 2006
August 30, 2012
This policy will be reviewed and updated as needed.
Provide guidelines for the provision of self-employment services for DBS consumers.
FS 413; Rehabilitation Act of 1973, As Amended
Self-employment is an employment model in which the client owns, manages and operates a small business for profit, and is not considered to be an employee of another person, business, or organization.
Scope of Services
DBS may assist a client in establishing an independently operated business with the client owning at least 51% of the business. Services are sponsored only one-time. Services may include the following:
- Training/education in the actual field of work;
- Referral and coordination with the Small Business Development Center or other local resource (community college, university, etc.) for basic business administration courses and counseling;
- Business consulting services;
- Licensing fees and other start-up costs;
- Financing required to leverage other small business loans for additional expenses including stock, supplies, and equipment;
- Personal computer equipment including adaptive technology; and
- Other start-up costs.
Prohibitions and Restrictions
DBS will not provide funding or be involved in assisting client plans for:
- Businesses that are speculative in nature, such as investments in real estate;
- Businesses organized as non-profit;
- Businesses organized as hobbies, i.e., any business that is not designed to make money or a profit;
- Franchise fees, goodwill fees (i.e., trademarks, customer bases);
- Construction and/or purchase of real estate;
- Purchase of land;
- Refinancing an existing debt; or
- Investment in an existing business that is in financial jeopardy.
All other applicable State and Federal laws, policies and procedures must be followed, including state purchasing laws.
All individuals requesting DBS support in self-employment must complete a business plan, which contains the elements outlined in the DBS Business Plan Review Criteria and Checklist (Attachment I).
Each business plan must be submitted to the State Office for review and approval by the Bureau Chief of Client Services.
All decisions to support or deny the request will be based on the recommendations of an outside small business consultant. All plans must be examined by at least one outside business consultant. DBS currently is utilizing SCORE. (SCORE.org) as our outside business consultant.
It is recommended, but not required, that the individual be referred to the local Small Business Development Center or community college for training and/or assistance in writing the business plan. However it is recommended that the individual obtain business development courses offered by the Hadley School for the Blind. Those courses are:
- Self-Employment with a Minimal Investment Course EMP-201
- The Business Plan Module FCE-130
- The Financial Plan Module FCE-130
- The Marketing Plan Module FCE-120
Funding of the Small Business
Primary funding of the business shall come from other public or private sources. This can include “in-kind” contributions from the client and family. It may include loans, venture capital, grants, or funds obtained from the Social Security Administrations “Plan to Achieve Self-Sufficiency” (PASS) program.” DBS will not be the sole funder of a business.
DBS will provide capital for a small business when an approved IPE for self-employment indicates DBS financial support is necessary. Funding should not exceed 80% of the total cost of establishment the business. Financial assistance will generally be $5000, and will not typically exceed $15,000. Funding will not be provided in the form of cash. If funds are provided directly to the client for purchase of business startup items, (examples; licenses, equipment, advertising, etc.) client must provide receipts to the counselor. Counselor will enter a case note into the electronic file regarding receipt(s) and for what items as well as file the receipt(s) in the client’s hard copy file.
Factors to be taken into account in approving a request for more than $5000 include, but are not limited to:
- Whether the individual has a goal of achieving self-sufficiency;
- Whether funds received from DBS will leverage additional capital;
- The size of the business; and
- An assessment by the business plan review team that the business may yield substantial profit.
NOTE: Exceptions require prior approval from the Bureau Chief of Client
Signed by director Joyce Hildreth on 9/1/2012.