Or. Admin. Code § 582-070-0044

Current through Register Vol. 63, No. 11, November 1, 2024

Section 582-070-0044 - Funding Requirements for a Viable Business Plan

(1) Under most circumstances, OVRS should not be considered a primary resource for the capital required for a self-employment venture. When no comparable benefits and services are available, OVRS may fund reasonable and necessary start up costs for a business as part of a individual's Individualized Plan for Employment. 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 OVRS.

(2) Funding for the business plan may include, but is not limited to, the individual's own resources; comparable services and benefits; loans from banks, finance companies or venture capitalists; grants; foundations; loans or loan guarantees from the Small Business Administration; local and state economic development funds; help from family or friends; a Social Security Plan for Achieving Self Support (PASS); or other such resources.

(3) The individual is not required to accept a loan or utilize a PASS plan to fund the business plan. However, to be viable, a business plan may require additional funding such as that in a subsection (2) to cover the cost of the business venture.

(4) Except for reasonable and necessary initial start-up costs, OVRS shall not pay for ongoing functions intrinsic to the operations of the business. Any request for initial start-up costs must include:

(a) The determination that OVRS and the individual have explored all reasonable self-employment funding options, as identified in subsection (2); and

(b) The determination that available financial resources, as identified in subsection (2), will not meet the reasonable and necessary start-up costs for the business.

(c) Verification from the qualified expert approving the business plan that the requested start up costs are reasonable, necessary, and representative of what would be required for a start up business to begin operations.

(5) OVRS shall assume no financial liability for debts, including existing debt. Any loss shall not be reimbursed by OVRS.

(6) If additional funding such as that in subsection (2) is required to cover the cost of the business venture, the individual shall decide, based upon informed choice about the funding options available, whether to proceed with the business plan. This may include deciding to accept a loan for capitalization and ongoing business expenses.

Or. Admin. Code § 582-070-0044

VRD 1-2000, f. & cert. ef. 7-24-00; VRS 5-2004, f. & cert. ef. 8-5-04; VRS 1-2011(Temp), f. 2-15-11, cert. ef. 3-1-11 thru 8-28-11; VRS 2-2011, f. 8-12-11, cert. ef. 9-1-11

Stat. Auth: ORS 344.530(2)

Stats. Implemented: ORS 344.511 - 344.690 & 344.710 - 344.730