Disaster Declared: Loans Now Available For IL Tornado Victims
WOODRIDGE, IL — Loans are now available to victims of June 20’s devastating EF-3 tornado after the U.S. Small Business Association (SBA) declared a disaster in DuPage County and contiguous counties.
Friday’s disaster declaration offers low-interest loans to eligible tornado victims in the following categories:
- Business physical disaster loans of up to $2 million: for businesses or non-profits of any size to “repair or replace disaster-damaged property”
- Economic injury disaster loans of up to $2 million: capital loans to help businesses with financial obligations they cannot meet because of the tornado
- Home disaster loans: loans for homeowners and renters to replace damaged real estate (up to $200,000) and property (up to $40,000), including cars
Home loan interest rates range from 1.625 percent to 3.25 percent. For business loans, interest rates range from 2.88 percent to 5.76 percent. Nonprofit loans have an interest rate of 2 percent, according to data from SBA.
The deadly EF-3 tornado damaged more than 630 homes as it cut a 16-mile path from Naperville to Willow Springs in the late hours of Father’s Day, 2021. A total of 11 people were hospitalized, and an unborn baby died as a result of the tornado.
Gov. J.B. Pritzker filed for a disaster declaration from SBA in early July. The area impacted by the tornado did not meet the requirements for a federal disaster to be declared by the Federal Emergency Management Agency (FEMA).
Led by Reps. Bobby Rush (D) and Adam Kinzinger, more than a dozen Illinois lawmakers wrote the SBA in support of Pritzker’s disaster declaration request, which was issued Friday.
The deadline to file for a physical disaster loan is Sept. 14, 2021. The economic injury disaster loans have a deadline of April 18, 2022.
The SBA will review each applicant’s credit history, collateral and ability to repay when determining loan eligibility. Other factors that may affect eligibility include insurance coverage, ineligible property and previous noncompliance of SBA loans.
Click the link to apply for disaster loan assistance from SBA. For more information, residents can call 800-659-2955 or email [email protected] Residents who are deaf or have difficulty hearing are advised to call 800-877-8339.