November 2003

Military reservist economic injury loans still available

Small businesses — including chiropractic practices — with essential employees called to active duty may still apply for Military Reservist Economic Injury Disaster Loans (MREIDL) from the U.S. Small Business Administration.

For the last two years, the MREIDL program has provided loans to eligible small businesses to cover operating costs that cannot be met due to the loss of a key employee called to active duty in the reserves or National Guard.

Small businesses may apply for MREIDLs of up to $1.5 million if they have been financially impacted by the loss of an essential employee. These working capital loans may be used to pay necessary operating expenses that could have otherwise been covered. The loans cannot be used to refinance debt or expand the business. The current interest rate is 3.1 percent, 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.

The MREIDL filing period ends 90 days after the date the business owner or key employee is discharged from active duty.

To download an 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 application.

Source: Small Business Administration, www.sba.gov/news

Industry News from:
Chiropractic News from: