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 its ordinary and necessary operating expenses that it could have met, but is unable to meet, because an essential employee was “called-up” to active duty in their 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.

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.

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.

What is meant by “a period of military conflict?”

A 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., peace keeping operations).

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
  • The small business is unable to market, produce or provide a service ordinarily marketed, produced or provided.

How do I obtain a Military Reservist Economic Injury Loan Application?

You should contact the U.S. Small Business Administration.

Where can I find more information? 

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