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Illinois derecho, tornadoes in June have activated SBA Disaster Loan program

The U.S. Small Business Administration (SBA) announced today that federal Economic Injury Disaster Loans (EIDLs) are available in Illinois for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses due to derecho and tornadoes that occurred June 29-30, 2023.

The declaration includes Christian, Hancock, McDonough, Sangamon and Washington counties and the contiguous counties of Adams, Cass, Clinton, Fulton, Henderson, Jefferson, Logan, Macon, Macoupin, Marion, Menard, Montgomery, Morgan, Perry, Randolph, Schuyler, Shelby, St. Clair and Warren in Illinois; Lee in Iowa; and Clark and Lewis in Missouri.

“Working capital loans from the SBA are essential to eligible small businesses when the Secretary of Agriculture declares a disaster due to farmers’ crop losses,” said Francisco Sanchez Jr., associate administrator of SBA’s Office of Disaster Recovery & Resilience. “These loans help sustain rural economies when a disaster occurs.”

Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers.

The loan amount can be up to $2 million with interest rates of 4% for small businesses and 2.375% for private nonprofit organizations, with terms up to 30 years. The SBA sets loan amounts and terms based on each applicant’s financial condition. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement.

Eligibility is based on the size of the applicant, type of activity and its financial resources. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.

Applicants may apply online via the SBA’s secure website at sba.gov/disaster.

To obtain disaster loan information call the SBA’s Customer Service Center at 800-659-2955 (if you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or send an email to DisasterCustomerService@sba.gov.

Submit completed loan applications to the SBA no later than July 17, 2024.

 

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

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