Some of the people who support our military the most sometimes are the most affected by military mobilization. Servicemembers who are mobilized and called up for active duty sometimes have to leave their businesses or jobs for military active duty. Since they are called to duty, they leave their jobs and positions and this creates a hardship for the small businesses at times. There is a program that has been organized to support small business owners that suffer the loss of key employees and personnel.
The military Reservist Economic Injury Disaster Loan Program is a program created by the Department of Defense to support the efforts of Servicemembers who are called to active duty. The program is actually administered by the Small Business Administration to support Servicemembers who when called to active duty create a hardship for the business or small company that they work for. The SBA administration runs the MREIDL program and provides emergency loans and funds for capital operations for Servicemembers called up to active duty or TAD. 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.
It is designed to help provide business expenses and funds for businesses that suffer from the loss of important or vital employees that are activated and called up or mobilized. The funds are designed to provide short term assistance and capital for businesses to operate while the Servicemember is deployed on Active Duty. Loans are designed to assist, not take the place of Servicemembers called up for Service. Loans that are for less than $5,000 dollars don’t require any type of collateral. For loans of more than $5,000 dollars it requires whatever collateral may be available to guarantee the loan. This is a SBA loan program with the support of the Department of Defense that is organized to support other types of credit funding. It is an effective loan program to help small businesses and a successful Servicemember support program.