The U.S. Small Business Administration (SBA) has reminded small businesses, private nonprofit organizations, homeowners, and renters in Illinois of the approaching deadline to apply for federal disaster loans. The loans aim to mitigate losses from physical damage caused by severe storms and tornadoes on May 16, 2025.
The affected counties include Franklin, Jackson, Johnson, Pope, Saline Union, and Williamson. Eligible businesses and nonprofits can apply for business physical disaster loans of up to $2 million to repair or replace damaged real estate and assets. Homeowners and renters may borrow up to $100,000 for personal property repairs or up to $500,000 for primary residence repairs.
Applicants may also qualify for a loan increase of up to 20% of their verified physical damage for mitigation purposes. Improvements could include strengthening structures against wind damage or installing safe rooms.
“One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s mitigation loans.”
Interest rates are set at 4% for small businesses, 3.625% for PNPs, and 2.813% for homeowners and renters with terms up to 30 years. Interest accrual and payments are deferred until 12 months after the first disbursement.
Survivors should not wait for insurance settlements before applying for a disaster loan. The SBA can offer a loan covering total loss within limits if insurance proceeds are used to repay it.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are available at 7-1-1.
The deadline for physical property damage applications is August 18, 2025, while economic injury applications are due by March 16, 2026.