Illinois businesses and residents affected by the severe storms and flooding on July 19-31, 2017, can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Linda McMahon announced today.
Administrator McMahon made the loans available in response to a letter from Gov. Bruce Rauner on Sept. 11, requesting a disaster declaration by the SBA. The declaration covers Stephenson County and the adjacent counties of Carroll, Jo Daviess, Ogle, and Winnebago in Illinois; Green and Lafayette in Wisconsin.
“The SBA is strongly committed to providing the people of Illinois with the most effective and customer-focused response possible to assist businesses of all sizes, homeowners and renters with federal disaster loans,” said Administrator McMahon. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”
SBA’s customer service representatives will be available at the Disaster Loan Outreach Center to answer questions about the disaster loan program and help individuals complete their applications.
The Center is located in the following community and is open as indicated:
SBA Disaster Loan Outreach Center (DLOC)
Highland Community College
2998 West Pearl City Road
Building H – Student Conference Center
Freeport, IL 61032
Opens: Thursday, September 21; 11 a.m. - 5 p.m.
Hours: 8 a.m. - 5 p.m., weekdays
10 a.m. - 2 p.m., Saturday (closed Sunday)
Closes: Thursday, September 28; 8 a.m. - 3 p.m.
“Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” said SBA’s Illinois District Director Robert S. Steiner.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
“Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property,” said Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta.
Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.
Interest rates are as low as 3.305 percent for businesses, 2.5 percent for nonprofit organizations, and 1.75 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela.
The filing deadline to return applications for physical property damage is Nov. 14, 2017. The deadline to return economic injury applications is June 15, 2018.
For more information about the SBA’s Disaster Loan Program, visit our website at www.sba.gov/disaster.