TRANSITIONVA program

VR&E Self-Employment Track

VR&E helps veterans and service members with service-connected disabilities start a small business: help developing a business plan, analysis of the business concept, and training in small-business operations, marketing, and finances. Once VA approves self-employment, it can furnish minimum stocks, essential equipment, and fees such as a business license, but not land, buildings, or vehicles.

Available to veterans and service members enrolled in VR&E whose service-connected disability creates an employment handicap

View on VA.gov

Step-by-step guide

What VA looks for before a business plan is approved

A service-connected rating VR&E acceptsA rating of 20 percent or more with an employment handicap, or a rating under 20 percent with a serious employment handicap. The disability began or got worse in service on or after September 16, 1940. VA.gov adds that the discharge was not dishonorable.
An employment handicap the counselor findsA counselor finds that your ability to prepare for, get, or keep a suitable job is impaired, that you have not overcome it, and that your service-connected disability is a substantial part of the cause. It does not have to be the only cause.
A business plan VA finds workableBefore VA approves a self-employment plan it reviews the business: whether it can make money, what VA would pay for, the market, other financing including your own money and banks, coordination with the Small Business Administration, the site and its cost, and a training plan.

Source: 38 CFR 21.40(a) (opens in new tab); 38 CFR 21.40(b) (opens in new tab); VA.gov: VR&E requirements (opens in new tab); 38 CFR 21.51 (opens in new tab); 38 CFR 21.50(b) (opens in new tab); VA.gov: VR&E Self-Employment track (opens in new tab); 38 CFR 21.257(f) (opens in new tab)

Which self-employment path is this?

Self-employment as your VR&E goal
Inside VR&E, VA can approve self-employment as your job goal when it finds that goal suitable, based on your initial evaluation. You first get VR&E through the usual rating and employment handicap rules. Then you build a business plan, and VA reviews it before it approves the plan.
Source: 38 CFR 21.257 (opens in new tab); VA.gov: VR&E Self-Employment track (opens in new tab)
Self-employment as the only workable goal
Some veterans have service-connected disabilities so severe that self-employment is the only reasonably workable job goal. VA may give them more help, including the supplies and equipment needed to open.
1. Limits so severe that self-employment is the only workable goalVA decides that the effects of your service-connected disabilities on employment are so severe that self-employment is the only reasonably workable goal. The business plan review still applies.
Source: 38 CFR 21.257 (opens in new tab); 38 CFR 21.214(e) (opens in new tab)

Time limits

VA.gov says the 12-year basic period does not apply to veterans discharged on or after January 1, 2013. For earlier discharges it ends 12 years from the later of your separation notice or your first VA service-connected rating, and VA.gov says it may be extended if a counselor finds a serious employment handicap.

What to gather, and what it shows VA

Documents for this benefit: what each is, what it shows VA, and how VA gets it
Document	What it shows	How VA gets it	Have it?
VA rating decision or benefit summary letter The VA letter that shows your service-connected disabilities and combined rating.	The service-connected rating VR&E starts from	VA holds it. You can download decision letters and a benefit summary letter on VA.gov.	Yes
VR&E application VA Form 28-1900, the application for Veteran Readiness and Employment.	That you asked VA for VR&E	Apply online on VA.gov, by mail to the VR&E Intake Center, or in person at a VA regional office.
Initial evaluation with a VR&E counselor A meeting with a Vocational Rehabilitation Counselor who looks at your abilities, aptitudes, interests, and how your disabilities affect work.	Whether an employment handicap exists and whether self-employment suits you	VA schedules it after it gets your application.
Proposed business plan Your plan for the business, written by you or with VA help: costs, market, site, financing, and how you will learn to run it.	That the business can work and what VR&E would pay for	You build it with your counselor, then VA reviews it.
DD214 Your certificate of release or discharge from active duty.	Your character of discharge	You keep a copy. If you lost it, request your service records through VA.gov.	Yes

Papers go to VA and your VR&E counselor. BeneVets does not ask for copies of them.

Steps, in order

Apply for VR&E
File VA Form 28-1900 online, by mail, or at a VA regional office. Service members without a rating yet can apply too.
Source: VA Form 28-1900 (opens in new tab); VA.gov: how to apply for VR&E (opens in new tab); 38 CFR 21.30 (opens in new tab)
Get free help with the application
Free help: an accredited VSO can file this with you. Find one near you in the BeneVets VSO directory at Find an accredited VSO near you. VA.gov lists working with an accredited representative as one way to apply.
Source: VA.gov: accredited representatives (opens in new tab); VA.gov: how to apply for VR&E (opens in new tab)
Go to orientation
If VA accepts your application, it invites you to an orientation session at your nearest VA regional office.
Source: VA.gov: VR&E Self-Employment track (opens in new tab); VA.gov: how to apply for VR&E (opens in new tab)
Meet your counselor for the initial evaluation
A Vocational Rehabilitation Counselor decides whether you have an employment handicap, whether it is serious, and whether a job goal is reasonably workable. Tell the counselor you want to run your own business.
Source: 38 CFR 21.50(b) (opens in new tab); 38 CFR 21.51 (opens in new tab); 38 CFR 21.52(a) (opens in new tab); VA.gov: how to apply for VR&E (opens in new tab)
Build the business plan
With your counselor, develop the business plan and the training you need to run it. VA reviews the plan before it approves a self-employment rehabilitation plan.
Source: 38 CFR 21.257(f) (opens in new tab); VA.gov: VR&E Self-Employment track (opens in new tab)
Plan approval
The VR&E Officer with jurisdiction over your case can approve a lower cost plan. A plan at or above the cost line in 38 CFR 21.258 needs approval from the Executive Director of VR&E Service.
Source: 38 CFR 21.258 (opens in new tab)
Ask for a decision review if you disagree
If you disagree with VA on your VR&E application, you can ask for a decision review.
Source: VA.gov: how to apply for VR&E (opens in new tab); VA.gov: decision reviews and appeals (opens in new tab)

Good to know

What the track can include

VA.gov lists help writing a business plan, an analysis of your idea, and training in running a small business, marketing, and finances. The rule adds vocational training, license and other required fees, and the tools and supplies the work needs.

Source: VA.gov: VR&E Self-Employment track (opens in new tab); 38 CFR 21.257 (opens in new tab)

What VR&E does not pay for

Help is limited to what you need to begin operations. VR&E cannot pay for land or buildings, leases or rent, cars or trucks, or stocking a farm with animals.

Source: 38 CFR 21.214(e) (opens in new tab); 38 CFR 21.214(f) (opens in new tab)

BeneVets is informational and is not an accredited representative. Free help: an accredited VSO can work through VA benefits with you at no cost. Find an accredited VSO near you