The Chicago skyline from Montrose Harbor. Photo: John Picken / Wikimedia Commons, CC BY 2.0
Homeowners, renters and businesses in Cook County that took damage in this year’s storms can now apply for federal disaster loans. The Governor’s Office announced on Friday, Nov. 16, that the U.S. Small Business Administration had granted a disaster declaration for the county.
The declaration opens several kinds of low-interest loans. Homeowners can borrow up to $200,000 to repair or replace damaged or destroyed real estate. Homeowners and renters can get up to $40,000 to replace personal property. Businesses and private nonprofit organizations can borrow up to $1.5 million to repair or replace real estate, machinery and equipment, inventory and other business assets.
Where to apply
SBA representatives will take and process applications in person from Tuesday, Nov. 20, through Thursday, Dec. 13, at the Chicago Park District’s Eckert Park, 1330 W. Division St. Hours are 8 a.m. to 5 p.m., Monday through Friday, except holidays.
People who cannot apply in person can request information and applications from the SBA’s toll-free disaster assistance line, which also has a line for hearing-impaired callers. The city’s Office of Emergency Management and Communications and the 46th Ward office can also help residents with questions.
Loans, not grants
Despite the agency’s name, SBA disaster loans are not limited to small businesses. Most of the money in a typical declaration goes to homeowners and renters. The loans must be repaid, but they carry lower interest rates and longer terms than most private financing, and applicants generally need to show they cannot fully cover the loss through insurance.
For small businesses, the inventory and equipment coverage is often the most important piece. A flooded basement storeroom or a roof failure can wipe out stock that a shop cannot afford to replace from cash.
Owners should gather insurance documents, repair estimates and photos of the damage before applying.
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