Under the Cultivate Illinois: Storm & Drought Loan Program, the Treasurer’s Office provides low-interest loans to agricultural professionals whose property has sustained substantial weather-related damage.
The loans are available to agriculture professionals living in declared agricultural disaster areas in Illinois who are waiting for insurance settlements or other aid programs to take effect. Agriculture professionals who do not have adequate insurance coverage can also apply.
To receive the low-interest rate, borrowers must secure the loan at a bank or financial institution that participates in the state’s Storm & Drought linked deposit program. The loan can be up to the costs of repairs and expenses to a total of $100,000. The Cultivate Illinois: Storm & Drought loan application must be filed by the bank on the resident’s behalf within 90 days of a state, federal or local official’s appropriate disaster declaration.
Download frequently asked questions here.
Amounts and Terms:
- Storm & Drought victims with insurance coverage are eligible for low-interest rate loans up to the costs of repairs and expenses, to a total of $100,000, with interest-only payments for one year. The loan is designed to be paid off with an insurance settlement or other aid payment within the 12-month term.
- Storm & Drought victims without insurance coverage are eligible for low-interest rate loans up to their damage amount with interest-only payments for one year or interest and principal payments for up to five years. A compliance review is required for loans with terms over two years.
Deposit amounts and lengths for those without appropriate insurance:
Amount of Deposit Length
$0 - $5,000 12 mth (interest only)
$5,001 - $10,000 24 mth (interest + principal)
$10,001 - $25,000 36 mth (interest + principal)
$25,001 - $50,000 48 mth (interest + principal)
$50,001 and up 60 mth (interest + principal)
Interest Rates:
Interest rates are indexed daily here or you may contact our office at (217) 782-2072. The listed rate is the Treasurer's deposit rate at the participating lender. The lender may not mark up that rate by more than 2.5 percent. Please note the listed rates are posted to give potential borrowers an indication of current rate figures. The final deposit rate is determined on the business day prior to issuing the loan
Program Eligibility:
- Storm & Drought victim's property must be in a location declared an agricultural disaster area by an appropriate government official.
- The loan application must be filed by a participating lender within 90 days of the disaster declaration.
- The loan must be used to pay the costs of repairs and expenses related to the weather emergency.
How do I apply?
1. Contact the Treasurer's Storm and Drought division at (217) 557-6436 to confirm you qualify for the program and to receive a list of participating financial institutions.
2. Meet with a loan officer at a participating financial institution and secure loan approval. The financial institution must agree to use the program.
3. After you are approved for a loan, an Application for Deposit must be completed by the financial institution and a Program Application for the Bridge Loan or the Uninsured Loan must be completed by the borrower. The Application for Deposit and the Program Application can be faxed to our Banking Division at (217) 522-1217.
4. If the application is approved and the lender has sufficient collateral, our Banking Division will perform a 24-hour transfer of funds via ACH into the financial institution so that the funds are made available to the borrower.
For more information about your loan possibilities, contact the Cultivate Illinois office at (217) 557-6436
or cultivateillinois@treasurer.state.il.us or call the Disaster Recovery hotline at (866) 523-0641. Lenders with questions should call our banking division at (217) 782-2072.
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