The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Illinois of the approaching June 30 deadline to apply for federal disaster loans. These loans aim to offset economic losses caused by a tornado on July 15, 2024.
The affected areas include the Illinois counties of Bureau, Henry, Knox, Mercer, Rock Island, Stark, and Whiteside. Under this disaster declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program offers assistance to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have suffered financial losses directly related to the disaster. However, these loans are not available to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs arising from the disaster and are available even if there was no physical damage to the business or organization. The funds may cover fixed debts, payroll expenses, accounts payable, and other bills that were unpaid due to the impact of the tornado.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” stated Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Eligible applicants can receive loan amounts up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The terms extend up to 30 years. Notably, interest does not accrue nor are payments required until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant's financial situation.
Applications can be submitted online at sba.gov/disaster. For further information on SBA disaster assistance, applicants can contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
Completed applications must be submitted by June 30, 2025.