Self-employment is one of the tracks available under VA's Vocational Rehabilitation and Employment (VR&E) program, also known as Chapter 31, authorized under 38 U.S.C. Chapter 31 and implemented through 38 CFR Part 21. This program is separate from VA disability compensation claims (which use forms like 20-0995 or 20-0996 for supplemental claims); VR&E is an employment and independent-living benefit available to veterans with a service-connected disability rating and an employment handicap.
Self-employment is generally considered a more difficult track to get approved because VA wants assurance the veteran has a viable, sustainable business concept before committing resources. The process typically involves several stages: an initial evaluation with a Vocational Rehabilitation Counselor (VRC) to determine eligibility and entitlement, development of a rehabilitation plan, and — if self-employment is chosen — a feasibility study of the business concept. This study assesses market viability, the veteran's transferable skills, and whether the idea is likely to succeed. If the feasibility study supports the concept, the next step is usually development of a formal business plan, which VA reviews before authorizing further support such as training, equipment, or start-up assistance tied to the plan under 38 CFR 21.256.
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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Analyze my claim free →Approval requirements are not about having a fully polished business with all the details worked out upfront. Rather, VA regulations focus on whether the veteran demonstrates a reasonable likelihood of achieving self-support through the proposed business, given their disability limitations and vocational goals. Counselors have discretion in how they interpret feasibility, which is why outcomes vary significantly between individual VRCs and regional offices — some veterans are approved for self-employment relatively smoothly, while others face pushback or denial, often due to counselor caseload, unfamiliarity with the self-employment track, or conservative interpretation of feasibility standards. Reading 38 CFR Part 21 Subpart B and being able to reference specific provisions when discussing plans with a counselor can help veterans advocate effectively for their case.
Approval of the self-employment track itself is only the first phase; veterans still must complete the feasibility study and secure business plan approval before receiving further program support. Each stage can be appealed or escalated within VR&E if a veteran believes a denial was inconsistent with policy.
A veteran pursuing this path should request a written copy of their individualized rehabilitation plan and ask their VRC to identify, in writing, exactly which feasibility and business plan criteria under 38 CFR 21.256 they will be evaluated against.
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