1. PURPOSE.To inform the workforce investment system of the implementation of the Small Business Administration (SBA) and the Department of Labor (DOL) Strategic Alliance Memorandum.

2. BACKGROUND.On December 11, 2003, Secretary of Labor, Elaine Chao and the SBA Administrator, Hector Barreto signed the DOL-SBA Strategic Alliance Memorandum (SAM). The purpose of the SAM is to implement a coordinated, interagency initiative to improve opportunities for people with disabilities to be employed by small businesses or to become small business owners. The initiative begins a cooperative and coordinated Federal effort to inform small business owners about the value of, and incentives for, hiring qualified job applicants who have disabilities, and to support individuals with disabilities in acquiring the essential basic skills and resources needed for starting or growing a small business.

SBA and its funded resource partners (Service Corps of Retired Executives, Small Business Development Centers, Women’s Business Centers, and Veteran’s Business Development Centers) provide cutting edge management and technical assistance to individuals who wish to begin or grow a business, including disabled veterans. These resources enable small business owners to operate their businesses more effectively and efficiently.

The Workforce Investment Act of 1998 created a national workforce investment system consisting of One-Stop Career Centers and their partner programs. The system expands the array of coordinated and customized services that can be provided to individuals, including those with disabilities, who need to achieve their goal of self-sufficiency through employment or entrepreneurship. This initiative will enable both the SBA and DOL to improve their respective capacities to serve the needs of people with disabilities.

In furtherance of President Bush’s New Freedom Initiative, SBA and DOL will jointly develop this "New Freedom Small Business Initiative" to accomplish the following goals:

• Assist adult workers with disabilities in acquiring skills and resources necessary to successfully begin and operate a small business; and
  
• Educate small business owners about the benefits of hiring people with disabilities.

1. Encouraging small businesses to hire people with disabilities.
   
2. Building capacity of the workforce investment system and the SBA to increase small business opportunities for people with disabilities.
   
3. Leveraging of other federal, state, and private programs for support of entrepreneurship for people with disabilities.
   
4. Encouraging people with disabilities to pursue small business ownership as a career choice.
   
5. Establishing a coordinated effort to document and disseminate best practices to potential employers of persons with disabilities and entrepreneurs with disabilities.

3. Action Required.States are requested to share this TEN with the One-Stop system and all officials within the state who need such information and to familiarize themselves with the subject matter discussed in the DOL-SBA SAM (attached). Continued technical assistance will be forthcoming regarding any potential program impacts as we begin to collaborate with SBA to implement this SAM.

4. Inquiries.Questions on this TEN may be directed to Jonathan Simonetta at (202) 693-3911 or by email at simonetta.jonathan@dol.gov.

5. DOL-SBA Strategic Alliance Memorandum.