Low-interest federal disaster loans offered for June storm damage; outreach center opens in Streator

Businesses and residents in parts of Illinois can apply for low-interest loans to help rebuild after severe storms and tornadoes that swept the region last month.

Businesses and residents in parts of Illinois can apply for low-interest loans to help rebuild after severe storms and tornadoes that swept the region last month. Several temporary outreach centers are also opening this week to help people apply, including in Streator , where a tornado caused damage in June. The U.S. Small Business Administration announced Tuesday it had issued a disaster declaration in response to a request from Gov. JB Pritzker last week.

The declaration covers Bureau , Cook , DeKalb , DuPage , Grundy , Kane , Kendall , Lake , La Salle , Lee , Livingston , Marshall , McHenry , Putnam , Will and Woodford counties in Illinois and Lake County, Indiana, according to an SBA news release. Illinois officials said Cook and La Salle were the primary counties targeted for the loans, but the other counties are contiguous to those and also eligible for SBA assistance for June 10-11 storms. People are eligible for physical damage loans and Economic Injury Disaster loans, the SBA said.

Homeowners and renters can apply for home and personal property loans, according to the SBA. They can borrow up to $100,000 to replace or repair personal property, like clothing, furniture, cars and appliances, and can apply for up to $500,000 to replace or repair their primary residence. Businesses and private nonprofits can apply for business physical disaster loans and can borrow up to $2 million to repair or replace real estate, machinery and equipment, inventory and other business assets.

“Applicants may also be eligible for a loan increase of up to 20% of their physical damage, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage,” according to the release. The SBA EIDL program is open to small businesses, small agricultural cooperatives and private nonprofit organizations with financial losses related to the disaster.

The SBA can’t provide disaster loans “to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises,” according to the release. The loans are meant for “working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster,” according to the release.

Interest rates are as low as 4% for businesses, 3.625 % for PNPs, and 2.875% for homeowners and renters, with terms up to 30 years, according to the release. The SBA said it sets loan amounts and terms based on each applicant’s financial condition. Interest doesn’t begin to accrue and payments aren’t due until 12 months from the date of the first loan disbursement.

Illinois officials said: “Residents and business owners in SBA declared disaster counties and counties that border those counties are eligible to apply and may visit any DLOC, regardless of where they live.” Starting Wednesday, SBA customer service representatives will be available at Disaster Loan Outreach Centers in Cook and La Salle counties to answer questions about the disaster loan program, explain the application process and help people complete their applications. Walk-ins are welcome, but people can schedule in-person appointments at appointment.sba.gov.

In addition to temporary outreach centers opening this week in Chicago, Blue Island and Alsip in Cook County, one is also opening in Streator, where a tornado injured several people and damaged homes June 11 . The Disaster Loan Outreach Center opened at Streator City Hall, 204 S. Bloomington St., at 9 a.m. Wednesday, July 15. Hours are 8 a.m. to 6 p.m. Monday to Friday and 8 a.m. to noon Saturday.

The center will remain open until 5 p.m. July 30. “When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover,” Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at SBA, said in the release. “At these centers, SBA specialists assist business owners and residents with disaster loan applications and provide information on the full range of recovery programs available.”

For a full list of temporary loan outreach centers, go to illinois.gov/news/release.html?releaseid=32714 . People can visit sba.gov/disaster to apply online or call the SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information. People who are deaf, hard of hearing or have a speech disability, can dial 711 to access telecommunications relay services, according to the release.

Sept. 8 is the filing deadline to return applications for physical property damage, and April 12 of next year is the deadline for economic injury applications.