05/26/2026
OFFICE OF DISASTER RECOVERY & RESILIENCE: The U.S. Small Business Administration (SBA) announced the availability of low-interest federal disaster loans for Illinois businesses, private nonprofits, and residents affected by severe storm and tornado occurring April 17, 2026. The SBA issued a disaster declaration in response to a request received from Gov. JB Pritzker on May 15.
The declaration covers the Illinois counties of Carroll, Jo Daviess, Ogle, Stephenson, and Winnebago, as well as the Wisconsin counties of Green and Lafayette, which are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Businesses and private nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.
Applicants may also be eligible for a loan increase of up to 20% of their physical damage, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.
“When disasters strike, SBA’s Disaster Loan Outreach Centers perform an important role by assisting small businesses and their communities,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the U.S. Small Business Administration. “At these centers, SBA specialists help business owners and residents apply for disaster loans and learn about the full range of programs available to support their recovery.” SBA’s EIDL program is available to small businesses, small agricultural cooperatives and private nonprofit (PNP) organizations with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
Interest rates are as low as 4% for businesses, 3.625% for PNPs, and 2.875% for homeowners and renters, with terms of up to 30 years. Interest does not begin to 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. Beginning May 19, SBA customer service representatives will be on hand at the Disaster Loan Outreach Center in the primary county of Stephenson to answer questions about SBA’s disaster loan program, explain the application process, and help individuals complete their application. Walk-ins are welcome and in-person appointments can be scheduled in advance at appointment.sba.gov. The DLOC hours of operation are listed below: STEPHENSON COUNTY Disaster Loan Outreach Center (DLOC) American Legion Hall 316 West Maine Lena, Illinois 61048 Opened: Tuesday, May 19, 2026, 10 a.m. to 6 p.m. Hours: Monday – Friday, 9 a.m. to 6 p.m. Saturday, 10 a.m. to 2 p.m.
Permanently Closing: Tuesday, June 2 at 5 p.m.
To apply online, visit https://www.sba.gov/funding-programs/disaster-assistance Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
The filing deadline to return applications for physical property damage is July 17. The deadline to return economic injury applications is Feb. 18, 2027.
Secure .gov websites use HTTPS A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
