In the wake of a significant fire at the South Terrace Apartment on February 22, the U.S. Small Business Administration (SBA) has announced the provision of low-interest federal disaster loans to affected businesses, nonprofits, and residents in Illinois. This initiative comes following an administrative disaster declaration issued on April 2.
The disaster relief covers Cook County, with provisions for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs). Nearby counties, including DuPage, Kane, Lake, McHenry, and Will in Illinois, and Lake County in Indiana, are eligible for EIDLs designated for small businesses and private nonprofit organizations.
Businesses and nonprofits can apply for loans up to $2 million to cover the repair or replacement of disaster-damaged property, while homeowners and renters may borrow up to $100,000 to replace or repair personal belongings. Homeowners can seek loans of up to $500,000 for primary residence repairs.
Additionally, applicants may be eligible for an extra 20% of their verified physical damages for mitigation purposes. EIDLs serve as support for working capital needs that arise due to the disaster, providing funds to cover routine expenses such as debts and payroll.
Interest rates are set at 4% for small businesses, 3.625% for nonprofit organizations, and 2.750% for homeowners and renters, with repayment terms extending up to 30 years. Importantly, no interest or payments are due until 12 months after the initial loan disbursement.
To assist with queries and application processes, SBA customer service representatives will be available at the Disaster Loan Outreach Center (DLOC) located at Justice Village Hall in Cook County, starting April 7. The DLOC will operate Monday to Friday and on Saturdays until its permanent closure on April 19.
“SBA’s Disaster Loan Outreach Centers (DLOCs) have consistently proven their value to business owners and homeowners following a disaster,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “Homeowners and business owners can visit the DLOC to meet face-to-face with specialists who will guide them through the disaster loan application process and connect them with resources to support their recovery."
The SBA urges disaster survivors not to delay their disaster loan application, regardless of ongoing insurance settlements, noting that loans can be adjusted based on insurance compensation to ensure coverage of losses.
Applications for physical property damage are accepted until June 2, 2025, while economic injury applications must be submitted by January 2, 2026. Interested parties can apply online at sba.gov/disaster, or reach out to SBA’s Customer Service Center by phone or email for further assistance.
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