Tuesday, January 28, 2014

Working Capital Loans for Reservists

Small businesses that suffered economic losses when the owner or a key employee was called up to active duty military service may be eligible for low interest loans up to $2 million from U.S. Small Business Administration.

Hundreds of Washingtonians (reservists and National Guardsmen) served military duty in Afghanistan in recent years and many more in Iraq War activities before that. Their employers might have been impacted by the absence.

This loan program (MREIL is the identifier) cannot cover lost income or lost profits, but is available to help a company meet its ordinary and necessary operating expects that could have been met, except for the military duty interruption.

SBA funds cannot be used in lieu of regular commercial debt, to refinance long-term debt or to expand the business, and collateral is required, if available, for loans of more than $50,000. The interest rate is 4 percent and terms can extend up to 30 years.

Funding must be requested within a year of the reservist being discharged from active duty following the call-up. There is more detailed information and an application process at this link. 

No comments: