The U.S. Small Business Administration has authorized federal disaster loan assistance for property owners whose homes and businesses were damaged by the June 20, 2021 EF-3 tornado. The SBA’s approval means low-interest, long-term loan applications will now be available to residents and business owners in Woodridge and other affected areas.
Application forms are available at disasterloan.sba.gov/ela.
The SBA has released a Fact Sheet with additional information on disaster loans.
Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email firstname.lastname@example.org for more information. The phone line for those who are deaf or hard-of-hearing should call 800-877-8339.
If you would like to come for assistance with the loan application, the SBA will open a Disaster Loan Operating Center on Tuesday, July 20 at the Village of Woodridge Village Hall (5 Plaza Drive). The Center hours of operation will be weekdays 9:00 a.m. until 6:00 p.m. There will Saturday hours on July 24 only from 9:00 a.m. until 1:00 p.m. The Center will close on Thursday, July 29.
Homeowners or renters can apply for loans to repair or replace disaster-damaged real estate and personal property, including automobiles. Home loans are limited to $200,000 for the repair or replacement of real estate and there’s a $40,000 limit for money to repair or replace personal property.
Loans up to $2 million are available to businesses of any size to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Private, nonprofit organizations such as charities, churches and private universities also are eligible.
Economic injury disaster loans up to $2 million also are available for small businesses and most private, nonprofit organizations to help meet ordinary and necessary financial obligations that cannot be met as a direct result of the disaster, SBA documents said.
Loan terms of up to 30 years can be set, but the law restricts businesses with credit available elsewhere to a maximum seven-year term. The SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.
Only uninsured or uncompensated disaster losses are eligible. Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar properties do not qualify for loans unless the items were used for business purposes, SBA documents said. Antiques and collections are eligible only to the extent of the item’s functional value.
Tornado damage in DuPage County did not meet the threshold for a federal disaster declaration from the Federal Emergency Management Agency, but it did meet the threshold for the SBA. An SBA declaration requires at least 25 homes and/or businesses in a county to have sustained major, uninsured losses of 40% or more.