Connecticut and other U.S. small businesses who suffer economic hardship when their owner or a key employee who is a military reservist is called to active duty are eligible for loans up to $2 million to use as working capital, the U.S. Small Business Administration says.
SBA announced Monday that application for the Military Reservist Economic Injury Disaster Loan (MREIDL) can be made any time from the date of notice of an expected call-up and ending one year after his or her date of discharge or release.
The program 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, SBA said.
“The absence of just one employee whose expertise is critical to the success of the company can pose significant challenges for a small business,” SBA Acting Administrator Jeanne Hulit said in a statement.
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 agency said. The loan cannot be used to replace lost income or profits, refinance long-term debt or to expand the business.
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.
