Military Reservist Economic Injury Disaster Loan Program
U.S. Small Business Administration
What is Military Reservist Economic Injury Disaster Loan Program?
The purpose of the Military Reservist Economic Injury Disaster Loan program (MREIDL) is to provide emergency working capital to eligible small businesses to meet ordinary and necessary operating expenses that the business is unable to meet because an essential employee was 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 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. MREIDL funds cannot be used to take the place of regular commercial debt, to refinance long-term debt or to expand the business.
Administration
Military Reservist Economic Injury Disaster Loan Program is administered by U.S. Small Business Administration.
Program Requirements
Federal law requires SBA to determine whether credit in an amount needed to accomplish full recovery is available from non-government sources without creating an undue financial hardship to the applicant. The law calls this credit available elsewhere. Because the Military Reservist Economic Injury Disaster Loans are taxpayer subsidized, Congress intended that applicants with the financial capacity to fund their own recovery should do so and therefore are not eligible for MREIDL assistance.
Credit Requirements: SBA's assistance is in the form of loans, as such SBA must have a reasonable assurance that such loans can and will be repaid based on satisfactory credit and repayment ability.
Collateral Requirements: Collateral is required for all MREIDLs over $50,000, to the extent it is available. Real estate is the preferred form of collateral. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral if it is available.
Application Details
What is the application process for Military Reservist Economic Injury Disaster Loan Program?
Apply online for disaster loan assistance at your own convenience through SBA's secure Disaster Loan Assistance website.