As the Chicago area continues to be hit with severe weather, Kane County residents and businesses are now eligible to secure low-interest federal disaster loans to help cover damage and losses from the storms and flooding that occurred in the area from July 2-4.
In early July, places like the Aurora area and the south suburbs were hit with severe weather, prompting clean-up efforts in the communities.
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Since then, the U.S. Small Business Administration, or SBA, has approved a disaster declaration for that bout of storms and flooding, in response to a request from Illinois Gov. JB Pritzker earlier this month. The declaration covers Kane, Cook, DeKalb, DuPage, Kendall and McHenry counties, according to a news release Monday from the SBA.
Homeowners and renters can apply for up to $500,000 to replace or repair their primary residence, per the SBA’s news release, and up to $100,000 to replace or repair personal property. Businesses and private nonprofits, meanwhile, can borrow up to $2 million for repairing or replacing damaged or destroyed 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,” like strengthening structures to protect against high wind damage or installing a safe room or storm shelter, the news release said.
Additionally, the Small Business Administration offers an economic injury disaster loan program for eligible small businesses, small agricultural cooperatives and private nonprofits, the SBA said in the release. These loans are available even if the business did not suffer any physical damage, and can be used for things like paying fixed debts, payroll, accounts payable and other bills that could not be paid due to the disaster.
Interest rates for the loans are as low as 4% for businesses, 3.625% for private nonprofits and 2.875% for homeowners and renters, per the SBA, with interest not beginning to accrue and payments not due until a year from the first loan disbursement.
The federal disaster loans are not available to agricultural producers, farmers or ranchers, except for aquaculture enterprises, the SBA said.
Online applications are available at: https://www.sba.gov/disaster/. Individuals can also contact the SBA’s customer service center at 800-659-2955 or [email protected], the news release said, and those who are deaf, hard of hearing or who have a speech disability can dial 711 for telecommunications relay services.
Residents and businesses have until Oct. 5 to submit loan applications for physical property damage, per the news release from the SBA. The deadline for economic injury loan applications is May 5.
Additionally, two disaster loan outreach centers have been established in Kane County, according to a news release from Kane County’s Office of Emergency Management, at which SBA customer service representatives will be available to answer questions, explain the application process and help individuals complete their applications.
The two centers in Kane County are located at the Prisco Community Center, at 150 W. Illinois Ave. in Aurora, and the Elgin Township building at 729 S. McLean Blvd. in Elgin, per the Office of Emergency Management.
The Aurora location will be open through Aug. 22 from 9 a.m. to 7 p.m. Monday through Friday, and from 9 a.m. to 2 p.m. on Saturdays, the county’s news release said. The Elgin location will be open Aug. 17 to Sept. 1 from 8 a.m. to 6 p.m. Monday through Friday, and from 9 a.m. to 6 p.m. on Saturdays.
Walk-ins are welcome, per the Office of Emergency Management’s news release, and eligible residents and business owners can visit any center, regardless of where they live.