Loans for flood victims

Local News
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WASHINGTON, D.C. (WCIA) —  Businesses and residents affected by severe storms and flooding from February 14th thru March 4th can apply for disaster loans.

The loans are from the U.S. Small Business Administration.

Governor Bruce Rauner requested help from the SBA on April 27th.

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.

“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 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 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.  Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.

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