Treat all expenses, including ongoing costs, to be incurred during the first 18 months,
or longer if warranted, of a PASS that involves starting a business as excludable
start-up costs if the expenses meet the necessary and reasonable criteria. You may
approve expenses the person incurs after the start-up period if the individual would
not otherwise have sufficient remaining income and resources to cover living expenses,
medical expenses, and work expenses as described in SI 00870.006A.1.
EXAMPLE: In 8/2000 a State VR counselor contacts a PASS expert about setting up a PASS for
Joan King. Joan is a blind SSI recipient who has a private insurance benefit of $425
a month and plans to open a candy shop in 12/2000.
To open the shop, Joan will need: $15,000 worth of stock and counter supplies; $350
for the first year's liability, fire, and theft insurance; $150 for utilities hook-up;
$250 for the first month's rent; and a security deposit of $500. Thereafter, costs
will be an estimated $1,000 a month for stock, $350 a year for insurance, $250 a month
for rent, and $125 for utilities.
The counselor says that VR will provide the initial stock and counter supplies, and
that the PASS will be to help with the other items.
You advise Joan that she can set aside funds under her PASS to cover, ata minimum,
the first 18 months of the business' operation, 12/2000 – 5/2002, that are not otherwise
paid by VR. Her start-up costs include:
the $350 for the first year's insurance plus any additional insurance premiums for
coverage due through 5/2002;
the $750 for the security deposit and rent due through 5/2002 ($250 a month);
the $150 for utilities hook-up plus the cost for utilities through 5/2002; and
re-stocking of inventory at $1,000 a month through 5/2002.
You advise Joan that you will exclude $405 of her insurance benefit, since $20 would
be otherwise excluded, and any earnings from the store she chooses to set aside for
her PASS until either:
she has paid for all of the start-up costs; or
beginning 6/2002 or later, she earns a sufficient income from the store to cover her
living, medical, and work expenses (see SI 00870.006A.1.).