Residents and businesses in six counties, including Cook, that were affected by severe storms and flooding last year can apply for low-interest federal loans for expenses not covered by insurance, the U.S. Small Business Administration announced earlier this month.
The loans are available following the SBA’s disaster declaration, which came after a request from Gov. JB Pritzker on Mar. 12, an SBA news release said.
The loans are for damages related to the storms that took place Aug. 16-19, 2025, a month when some Chicago residents saw their homes flooded twice. Residents of Cook, DuPage, Kane, Lake, McHenry and Will counties are eligible to apply.
The two types of SBA loans available are the Physical Damage Loans for homeowners, renters, businesses and nonprofits and Economic Injury Disaster Loans for businesses and nonprofits. Loan terms are a maximum of 30 years. Businesses with credit available elsewhere are able to receive a max seven-year term.
Homeowners can apply for up to $500,000 to repair or replace their homes. For both homeowners and renters, they can apply for up to $100,000 for damages to personal property such as furniture, appliances and cars.
Interest rates are as low as 3% for homeowners and renters, about 3.6% for nonprofits and 4% for businesses. Payments are not due and interest does not accrue until 12 months from the date of the first loan disbursement, according to the SBA. The loan amounts and terms are set based on each applicant’s financial situation.
Businesses and some nonprofits are eligible to borrow up to $2 million for physical damages to assets such as machinery, equipment and inventory. Even if a business or nonprofit didn’t suffer physical damages, it can still apply for loans to cover fixed debts, payroll costs and other bills not paid due to the disaster.
The SBA has opened Disaster Loan Outreach Centers in Chicago, suburban Cook County and online to help residents receive assistance when applying for the loans.
Borrowers have until May 15 to file applications for physical property damage and until Dec. 16 to file applications for economic injury. Applicants must have social security numbers to be eligible.
To apply for the loans, applicants can visit the SBA’s website at sba.gov/disaster.
