WASHINGTON — The U.S. Small Business Administration (SBA) has made loans available to small business owners who were affected by the severe thunderstorms and tornado outbreak on March 31.
Gov. J.B. Pritzker requested a disaster declaration from the SBA on June 29. Affected counties near the Quad Cities include:
- Lee
- LaSalle
- Ogle
- Whiteside
- Bureau
Other affected Illinois counties include Boone, DuPage, Sangamon, Cass, Christian, Cook, DeKalb, Kane, Kendall, Logan, Macon, Macoupin, McHenry, Menard, Montgomery, Morgan, Will and Winnebago. Rock and Walworth counties in Wisconsin are also included.
Illinois small businesses, small agricultural cooperatives, small aquaculture businesses, and private nonprofit organizations in these areas can apply for low-interest Economic Injury Disaster Loans (EIDLs) on SBA's website.
Interest rates are 4% for businesses and 2.375% for nonprofits. Loan amounts and terms are based on the applicant's financial condition. The legal limit for EIDLs is at $2 million, but the actual loan amount will be determined by the business' economic injury. The maximum term is 30 years.
What do I need to apply?
Business and nonprofit owners need three things to receive a loan:
- Credit history: Applicants must have a credit history the SBA finds acceptable.
- Repayment: Applicants must show the ability to repay the loan.
- Collateral: Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
What do I need to know before applying?
Applicants may be required to obtain and maintain appropriate insurance based on the business' location.
If an applicant has not complied with the terms of a previous SBA loan, they may be ineligible for a new loan. This includes failing to maintain flood or disaster insurance.
EIDLs can't be used to refinance long-term debts.
How do I apply?
Applicants can go to SBA's website and apply under SBA declaration #17983, not under any Covid declaration. Paper forms can also be downloaded and mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Any questions can be directed to SBA's customer service line at (800) 659-2955 or emailed to disastercustomerservice@sba.gov. The deadline for loan applications is April 3, 2024.
Business Recovery Centers
In addition to EIDLs, the SBA opened four business recovery centers in Illinois to assist business owners in applying for EIDLs.
The closest location to the Quad Cities is in the Lee County Courts Building, 309 S. Galena Ave., in Dixon, IL. They will be open Monday through Friday from 9 a.m. - 6 p.m., and on Saturday from 10 a.m. - 2 p.m. It will close permanently on July 26 at 4 p.m.
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