DATE: August 23, 2001
SUBJECT: Small Business Administration; Military Reservist Economic Injury Disaster Loans
SOURCE: August 23, 2001, Small Business Administration News Release
AGENCIES: Small Business Administration (SBA)
SYNOPSIS: The SBA is announcing that it is accepting applications for Military Reservist Economic Injury Disaster loans.
EDITOR'S NOTE: For more on the final rule that implemented this program, see the July 25, 2001, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Military Reservist Economic Injury Disaster Loans."
EFFECTIVE DATE: August 24, 2001.
FOR FURTHER INFORMATION CONTACT: Herbert Mitchell, Associate Administrator, Office of Disaster Assistance, 202-205-6734.
SUPPLEMENTAL INFORMATION: The Veterans Entrepreneurship and Small Business Development Act of 1999 (Public Law 106-50), Section 402, Assistance to Active Duty Military Reservists, paragraph (b), Disaster Loan Assistance for Military Reservists' Small Businesses, authorizes the government to "make such disaster loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis) to assist a small business concern that has suffered or that is likely to suffer substantial economic injury as the result of an essential employee of such small business concern being ordered to active military duty during a period of military conflict."
On July 25, 2001, SBA published a final rule implementing Section 402(b) of Public Law 106-50 by instituting the "Military Reservist Economic Injury Disaster Loan (EIDL)" program in Title 13 of the Code of Federal Regulations (CFR), Business and Credit Administration; Chapter 1, Small Business Administration; Part 123, Business Loans; as Subpart F, Military Reservist Economic Injury Disaster Loans. The rule goes into effect August 24, 2001.
SBA is announcing that it is accepting applications for Military Reservist Economic Injury Disaster loans starting August 24, 2001. The loans are available to a small business employing a military reservist if the reservist is called up to active military duty during a period of military conflict, and he or she is an essential employee critical to the success of the business' daily operation whose call-up has caused or will cause the business substantial economic injury (a sole proprietor who is called up to active duty also qualifies for the loan). The loans have interest rates of no more than 4%, have a term of up to 30 years, and are capped at $1,500,000.
Since this program applies to military conflicts existing on or after March 24, 1999, small businesses that meet all eligibility criteria will have until November 26, 2001 to apply. Otherwise, the filing period begins on the date the essential employee is ordered to active duty and ends on the date 90 days after the essential employee is discharged or released from active duty.
The offices where one can obtain an application are:
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
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