Winter Storm Disaster Assistance Available
Low-interest loans are available to the owners of homes and businesses that sustained weather-related damage during recent severe winter storms in Alexander, Hardin, Johnson, Massac, Pope, Pulaski and Union counties, Illinois State Treasurer Alexi Giannoulias said Feb. 5.
Under the Opportunity Illinois: Disaster Recovery Loan Program, the treasurer's office obtains below-market interest rates for storm victims in declared disaster areas who finance their disaster repairs through participating lenders. As of Feb. 5, loan rates would be no more than 4.5 percent.
Gov. Pat Quinn declared the seven Illinois counties state disaster areas Jan. 30 as Southern Illinois residents worked to recover from winter storms that took down trees and knocked out power for thousands of residents.
Under the state treasurer's program, residents and businesses that expect insurance to cover their damages can qualify for one-year bridge loans with interest-only payments. These loans are designed to be paid off in one lump sum when insurance or aid comes through.
Underinsured residents and businesses can qualify for low-interest loans with repayment terms of up to five years. The underinsured storm victims must make payments on the interest and principal for loans exceeding one year. Also, loans with terms longer than two years require a compliance review.
To participate in the Disaster Recovery Loan Program, borrowers must:
Own damaged property in an area declared a local, state or federal disaster area.
Secure a loan up to their damage amount with a participating lender.
File the application within 90 days of the state or federal disaster declaration.
Use the money for disaster recovery.
For more information about applying for a loan, finding a participating financial institution, or becoming a participating financial institution, call the Disaster Recovery hotline at 866-523-0641 or email <a href="mailto:opportunityillinois@treasurer.state.il.us">opportunityillinois@treasurer.state.il.us</a>.