The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Illinois affected by the Skokie water main break that occurred from February 14 to 16. The SBA issued an Economic Injury Disaster Loan (EIDL) declaration on May 16.
This declaration applies to Cook County and its neighboring counties, including DuPage, Kane, Lake, McHenry, and Will in Illinois, as well as Lake County in Indiana. Eligible entities include small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have suffered financial losses due to the incident. However, the SBA cannot offer disaster loans to agricultural producers such as farmers or ranchers unless they are aquaculture enterprises.
EIDLs are intended for working capital needs caused by the disaster. They can be used to cover fixed debts, payroll expenses, accounts payable, and other bills that could not be paid because of the disruption. These loans are available even if there was no physical damage to the business or nonprofit.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” stated Chris Stallings from the Office of Disaster Recovery and Resilience at the SBA. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
Loan amounts can reach up to $2 million with interest rates starting at 4% for small businesses and 3.625% for nonprofits over terms up to 30 years. Interest does not begin accruing until one year after disbursement.
Starting Wednesday, May 21, SBA customer service representatives will be available at the Business Recovery Center (BRC) located at Village of Skokie Hall in Cook County to assist with questions about loan programs and applications. The center will operate Monday through Friday from 8:30 a.m. to 5 p.m., Saturday from 10 a.m. to 2 p.m., closed Sundays and Memorial Day on May 26th. It will close permanently on June 5 at 3 p.m.
Applicants should not wait for insurance settlements before applying for an SBA loan; loans can be made based on total loss estimates pending insurance outcomes.
For more information or assistance with applications, visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov.
The deadline for economic injury application submissions is February 17, 2026.
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