The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Illinois affected by the severe drought that began April 1, 2025. The disaster declaration covers dozens of counties in Illinois, as well as select counties in Indiana, Kentucky, and Missouri. Impacted Illinois counties include Alexander, Bond, Christian, Clark, Clay, Clinton, Coles, Crawford, Cumberland, Douglas, Edgar, Edwards, Effingham, Fayette, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jasper, Jefferson, Jersey, Johnson, Lawrence, Macon, Macoupin, Madison, Marion, Massac, Monroe, Montgomery, Moultrie, Perry, Piatt, Pope, Pulaski, Randolph, Richland, Saline, Sangamon, Shelby, St. Clair, Union, Wabash, Washington, Wayne, White and Williamson.
Through the SBA’s Economic Injury Disaster Loan (EIDL) program, eligible small businesses, agricultural cooperatives, nurseries, and private nonprofits can apply for working capital loans to cover financial losses caused by the drought. The program is not available to most agricultural producers, farmers, or ranchers, except for aquaculture enterprises.
“These loans are a critical resource for helping communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer this financial assistance to those impacted by the drought.”
Loan amounts can be up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, and repayment terms of up to 30 years. No interest accrues, and no payments are due for the first 12 months. The SBA will determine loan amounts and terms based on each applicant’s financial situation. Applications can be submitted online at sba.gov/disaster. For assistance, applicants may call the SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov. The deadline for economic injury applications is June 1, 2026. For telecommunications relay services, please dial 7-1-1.