SBA Disaster Loans Available for Illinois Businesses and Residents After Flooding


sba-disaster-loans-available-for-illinois-businesses-and-residents-after-flooding

The U.S. Small Business Administration (SBA) is offering low-interest disaster loans to businesses and residents of Illinois affected by flash flooding on May 24. SBA Administrator Isabel Casillas Guzman announced the availability of these loans in response to a disaster declaration requested by Illinois Governor JB Pritzker on June 13.

This disaster declaration covers Montgomery County and the adjacent counties of Bond, Christian, Fayette, Macoupin, Madison, Sangamon, and Shelby. Businesses and residents in these areas can now apply for financial assistance to help recover from the flooding.

“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 Guzman. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”

To assist with the application process, the SBA will open a Disaster Loan Outreach Center (DLOC) at the Litchfield Fire Station 2. The center will help businesses and residents complete their disaster loan applications, accept documents, and provide updates on application status. Walk-ins are welcome, but appointments can also be scheduled in advance at an SBA Disaster Recovery Center. The center will be closed on July 4 for Independence Day.

Disaster Loan Outreach Center

Montgomery County

Litchfield Fire Station 2
1 Skyview Drive
Litchfield, IL 62056

Opening: Monday, June 24, at 11 a.m. to 6 p.m.
Hours: Monday – Friday: 9 a.m. to 6 p.m.
Saturday: 10 a.m. to 2 p.m.
Closed: Sunday
Closed: Thursday, July 4 for Independence Day
Permanently Closes: Monday, July 8 at 4 p.m.

Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery, equipment, inventory, and other business assets. For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. This assistance is available even if the business did not suffer any physical property damage.

Homeowners can apply for loans up to $500,000 to repair or replace damaged or destroyed real estate, and up to $100,000 to repair or replace damaged personal property, including vehicles. Additionally, applicants may qualify for a loan increase of up to 20% of their physical damages for mitigation purposes, which can include improvements like safe rooms, storm shelters, sump pumps, French drains, or retaining walls to prevent future damage.

Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, emphasized the importance of mitigation, stating, “The opportunity to include measures to help prevent future damage from occurring is a significant benefit of SBA’s disaster loan program. I encourage everyone to consult their contractors and emergency management mitigation specialists for ideas and apply for an SBA disaster loan increase for funding.”

Interest rates for these loans are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.688% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and monthly payments are not required until 12 months after the initial loan disbursement. Loan amounts and terms are determined by the SBA based on each applicant’s financial condition.

To apply online and receive additional disaster assistance information, visit sba.gov/disaster. Applicants can also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information. For those who are deaf, hard of hearing, or have a speech disability, dialing 7-1-1 will provide access to telecommunications relay services.

The deadline to submit applications for physical property damage is August 16, 2024, while the deadline for economic injury applications is March 17, 2025.

Image: Envato



Michael Guta Michael Guta is the Assistant Editor at Small Business Trends and has been with the team for 9 years. He currently manages its East African editorial team. Michael brings with him many years of content experience in the digital ecosystem covering a wide range of industries. He holds a B.S. in Information Communication Technology, with an emphasis in Technology Management.