NFIB

SBA Reminds Small Business Owners With Reservist Employees: Help Is Available
01/27/2003

As talk of war with Iraq continues to intensify, the Small Business Administration is reminding small business owners who employ military reservists that it offers several means of assistance when employees are called to active duty.

The Military Reservist Economic Injury Disaster Loan is designed to help small business owners who suffer financially due to the loss of key reservist employees. The loan has a 4 percent interest rate and a maximum term of 30 years. The maximum amount of the loan is $1.5 million, and the money can be used to pay fixed debts, payroll, accounts payable and other bills.

When applying for the loan, the small business owner must have a copy of the employee's orders for active duty, as well as a statement signed by the employee verifying that he or she is essential to the day-to-day operations of the business.

The SBA also offers business counseling and training services to help small businesses get by without reservist employees, and in the case of small business owners who are reservists, to survive in their absence.

For more information about these and other SBA programs for small businesses affected by reservistsÆ return to active duty, visit www.sba.gov/reservists.