Military Reservists
- What is the Military Reservist Economic Injury Disaster Loan Program?
- When should I apply for the loan?
- What is an essential employee?
- What is meant by a "period of military conflict"?
- What does "substantial economic injury" mean?
- How do I obtain a Military Reservist Economic Injury Disaster Loan application?
1. What is the Military Reservist Economic Injury Disaster Loan Program?
The purpose of the Military Reservist Economic Injury Disaster Loan Program (MREIDL) is to provide funds to eligible small businesses to meet their ordinary and necessary
operating expenses that they could have met but are unable to meet because an essential employee was "called up" to active duty in his/her role as a military reservist. These loans are
intended only to provide the amount of working capital needed by a small business to pay its necessary obligations as they mature until operations return to normal after the essential
employee is released from active military duty. The purpose of these loans is not to cover lost income or lost profits.
2. When should I apply for the loan?
The filing period begins on the date the essential employee is ordered to active duty, and ends 90 days after the date the essential employee is discharged or released from active
duty.
3. What is an essential employee?
An essential employee is an individual (whether or not an owner of the small business) whose managerial or technical expertise is critical to the successful day-to-day operations
of the small business.
4. What is meant by "a period of military conflict"?
"Period of military conflict" means:
- a period of war declared by Congress, or
- a period of national emergency declared by the Congress or the President, or
- a period of contingency operation.
A contingency operation is designated by the Secretary of Defense as an operation in which our military may become involved in military action, operations, or hostilities (e.g., peacekeeping operations).
5. What does "substantial economic injury" mean?
"Substantial economic injury" means that your business either has been or will be adversely impacted by the deployment of the military reservist and that the business
is:
- unable to meet its financial obligations as they mature, and/or
- unable to pay its ordinary and necessary operating expenses, and/or
- unable to market, produce, or provide a service ordinarily marketed, produced, or
provided.
6. How do I obtain a Military Reservist Economic Injury Disaster Loan application?
You can contact the
U.S. Small Business Administration.
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