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

May 11, 2009

Residents, business owners and farmers in Franklin, Jackson and Williamson counties are eligible for low-interest disaster recovery loans, Illinois State Treasurer Alexi Giannoulias said today.

Gov. Pat Quinn declared the three southern Illinois counties state disaster areas Saturday after severe storms swept through the region. The declaration makes residents and business owners eligible for the Opportunity Illinois: Disaster Recover Loan Program. Farmers are now eligible for the Cultivate Illinois: Storm and Drought Loan Program.

Under the loan programs, 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.

Residents, business owners and farmers 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, business owners and farmers 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 cannot afford to wait for insurance or aid to come through and must pay for repairs immediately,” Giannoulias said. “Our office facilitates immediate, affordable capital for Illinoisans so they can get their lives back on track.”

To participate in the Opportunity and Cultivate Illinois loan programs, 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

If you are a resident, business owner or banker who needs more information on Opportunity Illinois call the storm victim hotline at (866) 523-0641 or email opportunityillinois@treasurer.state.il.us.

If you are a farmer or banker who needs more information on Cultivate Illinois, call the storm/drought division at 217-558-6217 or email cultivateillinois@treasurer.state.il.us.

  
     
 
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