For Guard and Reserve Members

What Happens to My Small Business?

A small business owner faces the challenge of what to do with a business when called to active duty as a member of the National Guard or Reserves. If you have trusted employees, you can have them run it in your absence. Otherwise, you may have to sell the business or temporarily or permanently close it.

The Servicemembers’ Civil Relief Act (SCRA) has several provisions that help small business owners on active duty. SCRA provisions:

• Limit the amount of interest you have to pay on existing business loans to 6 percent a year during your period of service. You must request this interest rate reduction directly from your loan provider(s).



• Permit you to end business property and business vehicle leases. To learn how, read the section Can I End the Lease on an Apartment or Car?.



• Permit you to suspend payments on professional liability insurance and have the insurance reinstated when your military service is done at the same premium you would have paid if you had not entered service.

If you want to restart your business after returning home, the U.S. Small Business Administration publication, “Getting Veterans Back to Business,” offers helpful information.