About this programme
The Military Reservist Economic Injury Disaster Loan (MREIDL) is a federal loan program run by the U.S. Small Business Administration to help a small business meet its ordinary and necessary operating expenses when an essential employee is called up to active military duty as a military reservist.
The loan does not replace lost income or profit for the business. It exists to cover the operating costs the business would have been able to meet if the essential employee had not been called away — payroll, rent, utilities, and similar running expenses — for the period the business is short-handed.
MREIDL is administered through SBA's disaster loan program (the same office that runs physical and economic injury disaster loans), which is why it is filed under SBA's Disaster Assistance section rather than the standard 7(a) or 504 lending programs.
How it works
Maximum loan amount is $2 million. SBA calculates the actual amount based on the real economic injury the business has suffered, taking into account any business interruption insurance and the financial capacity of the business's owners. The $2 million cap can be waived for a business that is a major source of employment.
Funds can only be used for ordinary and necessary operating expenses the business would have met had the essential employee not been called to active duty. Proceeds cannot be used to replace lost income or profits, refinance long-term debt, or expand the business.
The interest rate is fixed and will not exceed 4%.
Repayment terms run up to 30 years, set according to the borrower's ability to repay. The first payment is deferred for 12 months from the date of the loan, and no interest accrues during that 12-month deferral period.
There are no prepayment penalties or fees for paying the loan off early.
Collateral is required on loans over $50,000, with real estate preferred where available. SBA states it will not decline a loan solely for lack of collateral.
Who can apply
A small business is eligible when an essential employee — someone whose specialized skills or management role is critical to the business's operations — is a military reservist called to active duty.
The business must be unable to obtain the credit it needs from non-government (private) sources without undue hardship; MREIDL is a credit-of-last-resort program, not a general-purpose loan.
The filing window opens on the date the essential employee receives notice of an expected call-up and stays open until one year after that employee is discharged from active duty.
How to apply
- Confirm the essential employee's call-up notice or active-duty orders and the filing window (from notice of call-up through one year after discharge).
- Apply online through SBA's disaster loan portal at lending.sba.gov, or call SBA's Disaster Assistance Customer Service Center at 800-659-2955 for help applying.
- SBA reviews the application and calculates the loan amount based on documented economic injury, offsetting any business interruption insurance and the owners' own financial capacity.
- For loans over $50,000, be prepared to offer collateral (real estate preferred); SBA states collateral alone will not be grounds for decline.
Frequently asked
What is the Military Reservist Economic Injury Disaster Loan for?
It helps a small business cover ordinary and necessary operating expenses — things like payroll, rent, and utilities — that it can no longer meet because an essential employee was called to active military duty as a reservist.
How much can a business borrow under MREIDL?
Up to $2 million, sized to the actual economic injury SBA calculates after accounting for any business interruption insurance and the owners' financial capacity. The cap can be waived for a business that is a major source of employment.
Can MREIDL funds be used to cover lost profits or pay off other debt?
No. Funds are limited to ordinary and necessary operating expenses. They cannot be used for lost income or profits, to refinance long-term debt, or to expand the business.
What interest rate and repayment terms apply?
The interest rate is fixed and will not exceed 4%. Repayment can run up to 30 years depending on the borrower's ability to repay, with the first payment deferred 12 months and no interest accruing during that deferral.
Is collateral required?
Collateral is required for loans over $50,000, with real estate preferred where the business has it. SBA states it will not decline a loan solely because a business lacks collateral.
When can a business apply, and how long does the window stay open?
The filing period opens the day the essential employee receives notice of an expected call-up to active duty, and it stays open until one year after that employee is discharged.
How do you apply for MREIDL?
Apply online through SBA's disaster loan portal at lending.sba.gov, or call SBA's Disaster Assistance Customer Service Center at 800-659-2955 for application help.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.