Small Business: Business loans available for military reservists

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Sam Jones is the Region VII SBA Administrator.|ret||ret||tab|

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As members of our armed services including the 203rd Engineering Battalion from southwest Missouri return from overseas deployment, it seems a good time to talk about special SBA assistance that has been made available to small-business owners. Both those called to active duty who own a small business, and their employers if they are key employees, may be eligible for loans through the U.S. Small Business Administration's Military Reservist Economic Injury Disaster Loan program.|ret||ret||tab|

The purpose of the MREIDL program is to provide funds to an eligible small business to meet its ordinary and necessary operating expenses that it could have met, but that it is unable to meet, because an essential employee was called to active duty in his or her role as a military reservist. The funds are provided as loans which 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. They are offered for a longer term than a conventional loan up to 30 years and with a special interest rate cap of not more than four percent, and for an amount of up to $1.5 million.|ret||ret||tab|

While the MREIDL loans cannot cover lost income or lost profits or be used to take the place of regular commercial debt, to refinance long-term debt or to expand the business, this assistance may be critical in keeping a small business afloat during this unprecedented time of military conflict.|ret||ret||tab|

If you have employed a person returning from active duty and he or she is an essential employee, this is the time to assess again if there has been, due to the call-up of the reservist, a loss that fits the criteria. You may learn more about MREIDL program by calling SBA's Springfield Branch Office at 417-890-8501 or by visiting SBA Disaster Services Web site at www.sba.gov/disaster. If you visit online, click on the Military Reservist Economic Injury Loan program. The site contains information on the program and on tax information, and a loan application and other documentation the applicant must fill out to determine qualification for the loan.|ret||ret||tab|

SBA is proud to administer this special loan program. It supports persons in the military who are deployed and their employers in a small way by helping to lessen the impact of this military duty, and recognizes the importance of small businesses to continued economic growth, especially after the Sept. 11 tragedy.|ret||ret||tab|

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