Low-Interest SBA Disaster Loans Available

By Ross Miller, Director,
Illinois Small Business Development Center

On May 23, 2013, the federal government added Knox, Marshall, Mason, Peoria, Stark, Tazewell, Woodford and seven other counties to the major disaster declaration issued May 10. This allows for businesses (as well as home owners and renters) that were affected by the storms and flooding in April to apply for SBA low-interest disaster loans.

These loans can be used to repair or replace items damaged or destroyed by the declared disaster. These items include real estate, leasehold improvements, machinery, fixtures, equipment, and inventory. The SBA can provide loans of up to $2 million. Another loan that can assist is an Economic Injury Disaster Loan (EIDL). Loans may be up to $2 million and used to meet financial obligations and operating expenses that could have been met had the disaster not occurred. This loan program applies regardless of any property damage incurred.

Both of these loans can have an interest rate not to exceed four percent. Repayment terms can be up to 30 years, depending on the applicant’s ability to repay the loan.

Learn more at the SBA’s website:
www.sba.gov/services/disasterassistance, Contact us at (309) 677-2992, or illinoissbdc@bradley.edu
for further information.