460 IAC 14.1-12-4 Businesses and costs not eligible for support by VR program

Sec. 4. (a) The following are not allowable as self-employment outcomes: (1) Pyramid sale distribution plans. (2) Businesses: (A) engaged in illegal activity; (B) where the sole purpose is to purchase a commodity, good, or real property with the goal of it becoming more valuable at a future date; (C) not expected or anticipated to produce a profit, such as a hobby; (D) not compliant with the local, state, and federal zoning requirements and other applicable local, state, and federal requirements; (E) where the participant does not direct business strategy and day-to-day operations; (F) that are franchised, nonprofit, or not-for-profit; (G) designed to earn passive income, including businesses where the earnings are derived from a rental property, limited partnership, or businesses where a person is not actively directly engaged in ongoing management or daily operation of the business involved; (H) where a participant is not at least a fifty-one percent (51%) owner; or (I) already in existence. (b) The following small business expenses are not eligible for reimbursement by the VR program: (1) Operating capital and any form of cash reserve or set-aside. (2) Public or private offering of preferred or common stocks, bonds, or other investment instruments. (3) Refundable security or other deposit to the participant or business. (4) Compensation, including salaries or benefits for the participant or any other owner or employee of the business. (5) Costs incurred by the participant or business as a consequence of collective bargaining activities by employees. (6) Income and sales tax withholdings, interest, penalties, or personal or business taxes of any kind. (7) Costs associated with securing, renewing, or litigating intellectual property. (8) Costs undertaken by the business to collect delinquent debts from its customers, including employing a collection agent or pursuing legal remedies. (9) Financial bailout or injection of cash to assist a troubled or failing business. (10) Rent or utilities, if the business is operated out of the participant's home. (11) Ongoing operating costs.