SBA offers help to residents affected by severe storms, flooding

WASHINGTON, D.C. — Illinois businesses and residents affected by the severe storms and  flooding from Feb. 14 through March 4 can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Linda McMahon announced.

McMahon made the loans available in response to a letter from Gov. Bruce Rauner on April 27, requesting a disaster declaration by the SBA.

The declaration covers Iroquois, Kankakee and Vermilion counties and the adjacent counties of Champaign, Douglas,   Edgar, Ford, Grundy, Livingston and Will in Illinois; and Benton, Lake, Newton, Vermillion and Warren in Indiana.

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

“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 the SBA’s Illinois district director, Robert 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 Richard Morgan, acting director of the 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 now 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 3.58 percent  for  businesses, 2.5 percent  for  nonprofit  organizations  and 1.813 percent for homeowners and renters with terms up to 30 years. The 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 disasterloan.sba.gov.

Businesses and  individuals may also obtain information and loan applications by calling the SBA’s Customer Service Center at 800-659-2955 or by emailing  disastercustomerservice@sba.gov. Loan applications can also be downloaded at www.sba.gov/disaster.

Completed applications should be returned to a center or mailed to: U.S. Small Business    Administration, Processing and    Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The filing deadline to return applications for physical property damage is July 6.  The deadline to return economic injury applications is Feb. 7, 2019.

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