Low-interest loans offered to storm victims
Residents in seven counties now eligible

September 15, 2008

Low-interest loans are available to the owners of homes and businesses that sustained weather-related damage during recent storms in Cook, DuPage, DeKalb, Grundy, Kane, LaSalle and Will counties, Illinois State Treasurer Alexi Giannoulias said today.

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 today, loan rates would be no more than 4.5 percent.

Governor Rod Blagojevich declared the seven Illinois counties state disaster areas today as residents work to recover from flooding caused by record-setting rains over the weekend.

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.

"Many times, storm victims need to make immediate repairs to their homes and businesses while they wait for insurance or aid payments,” Giannoulias said. “We help them obtain affordable rates so they can rebuild and get their lives back on track without delay.”

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 on 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 opportunityillinois@treasurer.state.il.us.

  
     
 
Back to Press Releases
 
   

Employ Illinois gives business owners access to capital to start or enhance their businesses with the help of low- interest rate loans.

Opportunity Illinois backs low-interest loans to consumers and community development agencies to improve the quality of life in Illinois.

Cultivate Illinois helps farmers offset the rising cost of farming and encourages green business development.
Money Market Fund allows local government entities to pool their investments to gain a higher rate of return for their residents.
Online bill paying gives people with busy schedules a quick and convenient way to pay government bills and fees.