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Military Reservists Eligible to Apply for SBA Working Capital Loans

Release Date: 
Wednesday, January 29, 2014
Release Number: 
14-8
Advisory Date: 
Wednesday, January 29, 2014
Contact: 
Matthew Nowak | matthew.nowak@sba.gov | 804-307-1458

Release Date:  January 28, 2014                                Contact: Matthew Nowak, (804) 307-1458

Release Number: 14-8                                                            E-mail Address: matthew.nowak@sba.gov

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Military Reservists Eligible to Apply for SBA Working Capital Loans

 

RICHMOND, Va — Small businesses that suffered economic losses when the owner or a key employee was federally mobilized are eligible to apply for a low interest loan of up to $2 million from the U.S. Small Business Administration.

 

“Service members have enough hardship during a deployment,” said Acting Richmond District Director Jaqueline West. “By providing assistance to their workplace or business we hope to make it a little easier during their transition from a mobilization back to the workforce.”

 

Small businesses can apply for a Military Reservist Economic Injury Disaster Loan (MREIDL) any time from the date of notice of expected call-up and ending one year after the date of discharge or release. The program was created to enable eligible small businesses to pay operating expenses it could have covered if the owner or key employee hadn’t been called to active duty.

 

The MREIDL is a direct working capital loan managed by SBA’s Office of Disaster Assistance.  The interest rate is 4 percent, with terms up to a maximum of 30 years.  In general, no collateral is required to secure an MREIDL of $50,000 or less.  The loan cannot be used to replace lost income or profits, refinance long-term debt or to expand the business.

 

“Our nation’s veterans are highly-skilled and highly-trained leaders in their communities,” said SBA mid-Atlantic Regional Administrator Natalia Olson-Urtecho.  “As we honor and thank them for their service and sacrifice, the SBA continues to identify ways to support them when they come home.”

 

Businesses can apply online at http://go.usa.gov/BcuA. To get an application by mail, or for other questions about the loan program, contact SBA’s Disaster Assistance Customer Service Center at 800-659-2955 or by email at disastercustomerservice@sba.gov.

 

Each year SBA helps more than 200,000 veterans, service-disabled veterans and reservists.  To learn more about additional opportunities for veterans available through the SBA, please visit the website at www.sba.gov/veterans.

 

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Related State: 
Virginia