Hiring Former Welfare Recipients

Q: My business will seek to offer employment to former welfare recipients. Are you aware of any programs that assist businesses that employ people released from the welfare rolls?

--Lawrence Coleman, Altadena

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A: Our nonprofit, nonpartisan group, called the Welfare to Work Partnership, was founded earlier this year by five of the nation’s top chief executives to tackle the question of how businesses can employ former welfare recipients. We have published a blueprint designed to help business owners find and hire employees who are getting off of public assistance.

We also offer information to businesses interested in applying for two federal income tax credits--the Work Opportunity Tax Credit (WOTC) and the Welfare to Work Tax Credit (WWTC)--created to encourage businesses to hire job seekers moving from welfare to work. The WOTC is currently available to employers and the WWTC will be available on Jan. 1.

If you want to learn more about these benefits and get how-to instruction on hiring former welfare recipients, attend our first national conference, at the Biltmore Hotel in Los Angeles on Dec. 3, 7 a.m. to 5:30 p.m. Panel discussions, success stories and guidelines on finding work-ready employees will be featured. For information on how to register for the conference and on our organization, call (888) USAJOB1 (872-5621) or visit our Web site at https://www.welfaretowork.org

--Luis Vizcaino, deputy communications director, Welfare to Work Partnership, Washington, D.C.

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A: I am excited to see that small-business owners like yourself are beginning to ask these kinds of questions. State legislation passed in August, which becomes effective Jan. 1, provides funding for job training groups, community colleges and job placement agencies to begin the process of moving welfare recipients into jobs as soon as possible.

You may qualify for benefits available to employers who hire residents of economically hurting regions that have been designated as enterprise zones. And you may be able to take advantage of state-funded programs that will help train your employees as they transition off of welfare.

Our agency can help you determine which benefits your business is eligible for, help with loan guarantees and environmental permits or assist your firm if you plan to do any exporting. You can find out more about our services by visiting our Web site at https://www. commerce.ca.gov

--Andrea Zeller, welfare-to-work specialist, California Trade and Commerce Agency

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Q: I would like to start marketing ayurvedic herbal medicines in the United States. They are manufactured in India. Can you advise me if there is a big market for herbal medicines? What do I have to take care of before this project can be started?

--Rajiv Paliwal, Diamond Bar

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A: Currently, there’s a lot of dissatisfaction with the American health-care delivery system. In this kind of climate, I think people look for alternatives of any sort, so, yes, the market for herbal or alternative medications and treatments is a big one.

I am certainly not averse to people using alternative types of medicines. In fact, I think it is helpful for herbal medicines and alternative treatments to be brought forth and subjected to testing and study. However, if these treatments are not scrutinized, I think medical consumers risk short-circuiting the protections that the U.S. Food and Drug Administration offers us.

I have been involved in drug research as an academic and have the greatest respect for the intentions of the FDA. I could not in any way be enthusiastic about anyone trying to sell substances that purport to have medical consequences without undergoing the process required by the FDA and the U.S. Pharmacopeia (USP), a nonprofit agency that standardizes medication doses and prescriptions.

I think your first step is to contact the FDA about the legality of marketing these medicines. Before you start your business, you should have documented letters from the FDA stating either that your product does not require its approval or that your product is in the process of obtaining FDA approval. Preferably, it should also be evaluated by the USP, or one of the other groups involved in regulating the drug industry.

Call the FDA’s office of consumer affairs at (800) 532-4440 or take a look at its Web site at https://www.fda.gov to determine whether you need FDA approval. The site offers information about drug evaluation and research and even has a page where you can download the forms you need in order to market a new drug in the United States.

--Dr. Vincent Riccardi, president, American Medical Consumers, La Crescenta

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If you have a question about how to start or operate a small business, please mail it to Karen E. Klein in care of the Business Section, Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016; or e-mail it to kklein6349@aol.com. Include your name, address and telephone number. The column is designed to answer questions of general interest. It should not be construed as legal advice.

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* LOAN STUDY: Small businesses in poor areas are less likely to receive loans than those in wealthy areas. D9