About Disability Benefits
Retaining disability benefits while launching a business is possible!
Community Futures has worked with people receiving disability benefits and beginning on the path to self employment. People receiving support and benefits from Workers Compensation, the BC Ministry of Housing and Social Development- Employment and Income Assistance or Canada Pension Plan Disability Benefits need to contact their case worker or employment assistance worker with their plans to pursue self employment. Receiving a business loan may impact your benefits if you do not inform your support agency of your plans!
Important considerations and steps:
1. Approval for Self Employment
If you are receiving Disability Benefits or Disability Insurance, it is important to contact the agency providing benefits with your plan to pursue self employment.
2. Self Employment Assessment
The agency providing your benefits may refer you to an organisation that provides employment programs for people with disabilities. For example, The Open Door Group (formerly THEO BC) and Triumph Vocational Services are two organisations contracted by The BC MInistry of Social Development to help assess a person’s suitablility for self employment. These organisations will recommend to your Disability Benefits Provider if you are ready to begin self employment, or if you need pre-employment training. The Open Door Group or Triumph may recommend you attend their training programs as part of your self employment plan. These programs can give you the foundation you need to launch your small business.
3. Self Employment Programs for people with disabilities.
Community Futures and other organisations offer self employment programs for people who have received employment insurance benefits. For persons with disabilities who have not worked enough hours to receive employment insurance benefits, there are self employment skills training options available that can help you take your business idea and create a working business plan. The Open Door Group and Triumph Vocational Services provide such training to people with disabilities who have been assessed and approved for pursuing self employment.
Through partnership agreements, Community Futures Sunshine Coast and Community Futures Okanagan-Similkameen provide specialised self employment services for people with disabilities. These Community Futures organizations provide entrepreneurial assessments and one-on-one support with self employment basics for people with entreprenerial ability, leading to business plan creation. The Canadian Society for Social Development offers its award-winning self employment program free of charge and online for persons with disabilities: Business Abilities.
4. Business loans and expert advice
If you need financing to start your business, you must inform your disability benefits case worker or employment assistance worker that you are applying for a business loan as soon as possible. The BC Ministry of Housing and Social Development has created a reporting process for clients pursuing self employment, called the MHSD Self Employment Program. ( “SEP” .) Registering in this program is essential to maintaining pwd income assistance benefits while starting and operating a small business.
For those who have developed a viable business plan and need financing, , the Community Futures EDP Loan application is your next step. Along with the business plan, the loan application will take into consideration you capability to run the business, your character, capital needs, collateral and market conditions. At your Community Futures office, you will meet with our Business Analyst who will critique your business plan and work with you to see if financing is possible, and for how much. The Business Analyst will provide you with expert advice based on what you present and what is in your business plan. EDP loans are repayable: your intent must be to make a profit from your business.
If you are approved for a business loan, your disability benefits case worker must be informed as soon as possible. The loan must be used soley for operating the business and not for personal expenses, or your benefits are at risk of being reduced or removed. If you are not registered in the MHSD SEP, you are at risk of losing benefits. Once registered with the Ministry, you will be required to submit monthly reports on business expenses to them in order to retain income support.
5. Earnings exemptions
There are limits to monthly earnings allowable under disability support programs, and drawing more than the allowable could put you at risk to lose part or all of your benefits! Your case manager must be informed of the personal income you draw from your small business and you must include all business income and eligible buisness expenses in your monthly report to your case manager.
It is important to keep accurate accounting records and all business receipts for clear reporting while receiving disability benefits. Expert assistance with bookkeeping is recommended.
6. Leaving benefits
Your business may succeed to the point that you no longer require disability income support. Careful planning and cashflow management is essential! Seek expert advice and counsel to ensure you know your options so you do not upset any financial supports you may be receiving. Know your break-even point and plan for success!