Feds to offer loans to Stephenson County flood victims

Sept. 20--FREEPORT -- Home and business owners in Stephenson County are eligible to apply for low-interest loans to help cover damages incurred during flooding in July.

The U.S. Small Business Administration accepted the state's request for aid for residents of northwest Illinois, Gov. Bruce Rauner said in a news release today.

"This assistance will help many people and businesses begin the next phase of their recovery from this disaster," Rauner said in the release.

Loans will be available to repair and replace damaged property in businesses and homes. Small businesses also can apply for loans to cover operating expenses.

Representatives from the Small Business Administration will set up a disaster loan outreach center in the Highland Community College Student Conference Center on Thursday and remain open through Sept. 28. They'll be available to answer questions and help fill out applications.

Business owners without credit available elsewhere can receive a loan of up to $2 million, while homeowners can receive up to $200,000. Interest rates are as low as 3.305 percent for business owners, 2.5 percent for nonprofits and 1.75 percent for homeowners for up to 30 years. Loan amounts cannot exceed the verified uninsured disaster loss.

The Small Business Administration offers loans in disaster areas when insurance and Federal Emergency Management Agency funding does not fully cover damages. FEMA previously determined that Stephenson County is not eligible for funding.

"Since we could not get a federal disaster declared, we went the extra mile to get any support we could for the community," said Robert Baker, director of the Stephenson County Emergency Agency. "We were lucky enough to get a Small Business Administration disaster declared."

To be eligible for a Small Business Administration declaration, at least 25 homes or businesses in a county must sustain major, uninsured losses of 40 percent or more. A damage assessment conducted in August identified 112 homes, six businesses and one nonprofit in Stephenson County sustained major damages and had uninsured losses, according to the news release.

People in Carroll, Jo Daviess, Ogle and Winnebago counties also will be able to apply for loans. Residents of Green and Lafayette counties in Wisconsin are eligible as well.

Applications for physical property damage loans are due by Nov. 14. The deadline for economic injury applications is June 15.

Derrick Mason: 815-232-0133; derrick.mason@journalstandard.com; @derrickhmason

Outreach center hours

Highland Community College, 2998 W. Pearl City Rd., Building H.

Thursday, Sept. 21: 11 a.m. to 5 p.m.

Weekdays: 8 a.m. to 5 p.m.

Saturday: 10 a.m. to 2 p.m.

Thursday, Sept. 28: 8 a.m. to 3 p.m.

Closed Sunday

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