If you are a small business owner and you are headed off to deployment, you are likely worried about how you will make ends meet. You are perhaps the center of your business, and without you your business may be strapped to continue without support of some kind. Well, do not fret; there are different types of support that is available. Small Businesses and small business owners are sometimes hit hard when Servicemembers that are vital to their day-to-day operations are mobilized for military service. There is one program that in particular can be helpful for small businesses and small business owners.
It is MREIDL, or the Military Reservist Economic Injury Disaster Loan Program. It is a program that provides funds for businesses that are financially affected by the deployment of a military Servicemember. Sometimes it is the small business that is hit the hardest by the deployment of reservist Servicemembers, and because of this Congress set up a program to help out financially and help ease some of the burden. This program is available to help out with financial shortfalls due to an employee that is essential to the business being activated and called up to TAD or active duty. This program is a loan program designed to provide funds for business expenses that are necessary. It did not designed to provide income or profits that will be lost due to deployment, but it is able to help provide short-term assistance and working capital for the business to continue while the Servicemember is deployed.
When the Servicemember is called to active duty the period to apply for a MREIDL loan begins. This is the time when application for the loan program can begin. The period to apply lasts from the first day of Active Duty to a period ending ninety days after the Servicemember is released from active duty. The MREIDL loan program was created by Congress to provide a method for small business and small business owners to continue their businesses and stop the failure of small businesses due to deployment.
Loans that are tendered for amounts less than five thousand dollars do not require any kind of collateral. If an amount is borrowed more than that, then these loans require some kind of collateral as much as possible to guarantee the loan. The Loan program is ran by the Small Business Administration, and the loans are intended to support other sources of credit.