---
kind: "section"
citation: "13 C.F.R. § 123.501"
title: "13"
number: "123.501"
heading: "Under what circumstances is your business eligible to be considered for a Military Reservist Economic Injury Disaster Loan?"
url: "https://uscodex.org/cfr/13/123.501"
---

# §123.501. Under what circumstances is your business eligible to be considered for a Military Reservist Economic Injury Disaster Loan?


Your business is eligible to apply for a Military Reservist EIDL if:

- (a) It is a small business as defined in [13 CFR part 121](/cfr/13/part121.md) when the essential employee was called to active service,
- (b) The owner of the business is a military reservist and an essential employee or the business employs a military reservist who is an essential employee,
- (c) The essential employee has been called-up to active service for a period of more than 30 consecutive days,
- (d) The business has suffered or is likely to suffer substantial economic injury as a result of the absence of the essential employee, and
- (e) You and your affiliates and principal owners (20% or more ownership interest) have used all reasonably available funds, and you are unable to obtain credit elsewhere (see [§ 123.104](/cfr/13/123.104.md)).

## Notes

### Amendments

[66 FR 38530, July 25, 2001, as amended at 67 FR 64519, Oct. 21, 2002; 88 FR 24109, Apr. 19, 2023]

### Source

Source: 66 FR 38530, July 25, 2001, unless otherwise noted.

### Authority

Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 636(d), 657n, 9009, and U.S. Const. art. VI, cl. 10.

### Source

Source: 61 FR 3304, Jan. 31, 1996, unless otherwise noted.

### Amendments

[66 FR 38530, July 25, 2001, as amended at 67 FR 64519, Oct. 21, 2002; 88 FR 24109, Apr. 19, 2023]