SBA's Deadline for Physical Damage Disaster Loan Applications Is December 2

Homeowners, renters, non-profit organizations and businesses of all sizes in the following counties are eligible to apply for both physical and economic injury disaster loan assistance: Cook, DeKalb, DuPage, Grundy, Kane, LaSalle and Will.

Small businesses, and most private, non-profit organizations in the adjacent counties of Boone, Bureau, Kankakee, Kendall, Lake, Lee, Livingston, Marshall, McHenry, Ogle, Putnam, Winnebago and Woodford in Illinois and contiguous Lake County in Indiana are eligible to apply for only SBA Economic Injury Disaster Loans.

The SBA offers loans up to $200,000 to repair disaster damaged primary residences. Homeowners and renters are eligible for loans up to $40,000 to replace personal property such as furniture, appliances and clothing. Loans to businesses of all sizes and non-profit organizations are available up to $2 million to repair damage to real estate, machinery, inventory and equipment.

SBA Economic Injury Disaster Loans (EIDLs) are available to small businesses, and most private, non-profit organizations of all sizes to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any property damage.

Interest rates are as low as 2.875 percent for homeowners and renters and 4.000 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant's financial condition.

Additionally, disaster victims with insurance should not wait for an insurance settlement before applying to the SBA. If victims do not know how much of their loss will be covered by insurance or other sources, the SBA will consider making a loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay their SBA loan.

The SBA also offers mitigation loans to disaster victims based on 20 percent of the verified damage. These funds are designed to help borrowers pay for protective measures which may prevent damages of the same kind in the future.

Anyone unable to visit one of the Centers located throughout the disaster area may obtain an application by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. until 9 p.m., and Saturday and Sunday from 9 a.m. until 9 p.m. EDT or by emailing the Customer Service Center at disastercustomerservice@sba.gov. Business loan applications can also be downloaded from the SBA website at www.sba.gov/services/disasterassistance Completed applications should be returned to one of the Centers or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX. 76155.

Victims may apply for disaster loans from SBA's secure Web site at https://disasterloan.sba.gov/ela/.

The filing deadline to return applications for physical damage is December 2, 2008. The deadline to return economic injury applications is July 3, 2009.

For more information about the SBA's Disaster Loan Programs, visit our website at www.sba.gov/services/disasterassistance.

Release Number: 09-052, IL 11469/11470

SOURCE: U.S. Small Business Administration

U.S. Small Business Administration Mark Ihenacho, 404-331-0333