SBA offers low-interest disaster loans for Illinois businesses affected by 2025 drought

WASHINGTON, (WAND) — The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Illinois affected by the ongoing drought that began April 1, 2025.

The disaster declaration covers over 40 counties in Illinois, including Alexander, Bond, Christian, Clark, Clay, Clinton, Coles, Crawford, Cumberland, Douglas, Edgar, Edwards, Effingham, Fayette, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jasper, Jefferson, Jersey, Johnson, Lawrence, Macon, Macoupin, Madison, Marion, Massac, Monroe, Montgomery, Moultrie, Perry, Piatt, Pope, Pulaski, Randolph, Richland, Saline, Sangamon, Shelby, St. Clair, Union, Wabash, Washington, Wayne, White, and Williamson. The declaration also covers affected counties in Indiana, Kentucky, and Missouri.

Under this program, the SBA’s Economic Injury Disaster Loans (EIDLs) are available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that experienced financial losses directly related to the drought.

According to the SBA, loans may be used for working capital needs such as payroll, fixed debts, accounts payable, and other disaster-related bills—even if there was no physical damage to the business.

SBA Associate Administrator Chris Stallings said, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

Loans can be up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for nonprofits, and terms up to 30 years. Interest does not accrue, and payments are deferred for 12 months from the date of the first disbursement. Loan amounts and terms are based on each applicant’s financial condition.

Businesses and nonprofits can apply online at sba.gov/disaster, call the SBA Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov

For those who are deaf, hard of hearing, or have a speech disability, telecommunications relay services are available by dialing 7-1-1.

The deadline to return Economic Injury Disaster Loan applications is June 1, 2026.

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