Attention Flood Victims
State Low Interest Loan Program Available
The State of Illinois has announced that low interest loans are available to home and business owners that sustained weather and flood related damage during the recent severe storm event. The press release from the Treasurer's Office follows - it can also be found on their website www.treasurer.il.gov:
Press Release:
Low-interest loans offered to
storm victims
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.