The Small Business Administration offers a program especially suited for military reservists, if they are ordered to active duty status. This program applies to military conflicts occurring or ending on or after March 24, 1999.
The Military Reservists Economic Injury Disaster Loan program provides funds to eligible small businesses. These funds can be used when a reservist is unable to meet his or her ordinary and necessary business operating expenses because of being called back onto duty.
These MREIDL funds cannot be used to pay regular commercial debt. They cannot be used to expand the business or refinance long term debt. They do provide working capital funds that will be needed by a small business to pay its necessary obligations. Funding will continue until the reservist is able to return to their business after being released from active duty. Assistance can begin as of the day the reservists return to active duty and will end 90 days after being released from active duty.
This program is still considered to be a loan. If the SBA determines that applicants can fund their own businesses, they are not eligible for assistance. Good credit is still required. The maximum interest rate that can be charged is 4%. Loan terms can be for a maximum of 30 years. Collateral is required for loans over $5,000 with a maximum loan amount of $1,500,000. Application approval time is from 7 to 21 days.
Visit www.sba.gov for more information on this valuable program.
