News from Congresswoman Madeleine Z. Bordallo

Military Reservist Economic Injury Disaster Loans available from SBA

FOR IMMEDIATE RELEASE – October 28, 2004 – Hagåtña, Guam –

Congresswoman Madeleine Bordallo announces that small businesses that employ military reservists who were called to active duty by President Bush may still apply for a Military Reservist Economic Injury Disaster Loan (MREIDL).  The disaster loans are available to small businesses during a period of military conflict from the U.S. Small Business Administration (SBA).

“The low-interest disaster loans are essentially designed to help small businesses that have or will suffer financially due to an essential employee and reservist, being called to active military duty,” Bordallo said.  “It is evident that the loss of any key employee, even for a short period of time, can adversely affect a small company’s ability to remain viable.  The SBA disaster program can assist with the working capital necessary to support these small businesses until the key employee returns from their deployment.”

Under the SBA program, the application period for an MREIDL begins on the date the essential employee is ordered to active duty and ends 90 days after that employee is discharged.  To date, SBA has approved 195 MREIDLs totaling over $17 million.

The SBA loans can be utilized for fixed debt, payroll, accounts payable, and other bills that can’t be paid.  Loans cannot exceed $1.5 million and offer an interest rate of 4 percent with a maximum term of 30 years.  Based on the financial impact of the loss of a key employee, SBA will determine the degree of economic injury, payment amount and loan maturity for each business that applies under the disaster program.

According to Bordallo, “The SBA, in partnership with those small businesses affected, can help to ensure the solvency of those companies that suffer the loss of key staff, who as reservists, are now serving on active duty and deployed.  By its very nature, the program is vital and necessary for those small businesses affected to remain competitive in the face of such economic challenges to their survival.”

Interested small businesses can obtain information and loan applications online at http://www.sba.gov/disaster_recov/loaninfo/militaryreservist.html or calling SBA Disaster Area 4 toll-free (800) 488-5323.

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Contact:  Neil Weare in Washington, D.C., at (202) 225-1188, Joaquin Perez or Ric Duke in Guam at (671) 477-4272.

www.house.gov/bordallo