(WAND) - The U.S. Small Business Administration is reminding small businesses
and private nonprofit organizations in Illinois there is still time to apply for federal disaster loans to help recover from losses caused by algal bloom water contamination.
The deadline to apply for low-interest loans is August 6. This is to offset economic losses caused by algal bloom water contamination that happened between July 10, 2025 and Aug. 1, 2025.
The disaster declaration covers the Illinois counties of Clark, Coles, Cumberland, Douglas, Edgar, Moultrie, and Shelby, which are eligible for Economic Injury Disaster Loans from the SBA.
SBA’s Economic Injury Disaster Loan program is available to small businesses, small agricultural cooperatives, and private nonprofit organizations — including faith-based organizations — with financial losses directly related to the disaster.
SBA does not provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are available for working capital needs caused by the disaster and are available even if the small business or private nonprofit did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills which could not be paid due to the disaster.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at SBA. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs, with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.
To apply online visit sba.gov/disaster.
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA
disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, dial 7-1-1 to access telecommunications relay services.
The deadline to return economic injury applications is Aug. 6. However, after the deadline has passed, there is a 60-day grace period in which SBA will accept applications.
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