articles - reemployment rights

NEWS RELEASE

U.S. Small Business Administration Press Office
Release Date: May 9, 2003
Contact: Carol Chastang (202) 205-6987
Release Number: 3-30
Internet Address: http://www.sba.gov/news/indexheadline.html

DISCHARGED MILITARY RESERVISTS HAVE 90 DAYS TO APPLY FOR SBA ECONOMIC INJURY LOANS

WASHINGTON – Small businesses with essential employees returning from active duty in the armed services still have 90 days to apply for Military Reservist Economic Injury Disaster Loans from the U.S. Small Business Administration. The filing period ends 90 days after the date the employee or owner is discharged from active duty.

“Americans are grateful for the sacrifices these reservists, some of whom are sole proprietors, have made to support the nation’s military effort,” said SBA Administrator Hector V. Barreto. “We recognize that long periods of absence for active duty can put an enormous strain on a small business, and these loans can help reservists weather the challenges involved in keeping the business running.”

The MREIDL program provides loans to eligible small businesses to cover operating costs that would have been covered, but cannot be met because an essential employee was called to active duty during a period of military conflict in his or her role as a military reservist.

Small businesses may apply for MREIDLs of up to $l.5 million if they have been financially affected by the loss of a key employee. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot otherwise be paid. The interest rate on these loans is 4 percent or less, with a maximum term of 30 years. The SBA determines the amount of economic injury, the term of each loan and the payment amount, based on the borrower’s financial circumstances.

To download the application, visit the Web site at www.sba.gov/disaster. Businesses can also contact one of the four SBA disaster area offices to obtain an MREIDL application. Below are the phone numbers for the offices, and the states each office serves: