The U.S. Small Business Administration is reminding small businesses and private nonprofit organizations in Illinois that the June 1st deadline is approaching to apply for low-interest federal disaster loans to help offset economic losses caused by drought conditions that began April 1, 2025.
The disaster declaration includes 48 Illinois counties, including several in Southern Illinois such as Alexander, Edwards, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jefferson, Johnson, Massac, Perry, Pope, Pulaski, Saline, Union, Wabash, Wayne, White, and Williamson counties.
The declaration also covers several counties in Indiana, Kentucky, and Missouri.
Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that suffered financial losses directly related to the drought.
The SBA noted disaster loans are not available to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.
Economic Injury Disaster Loans are designed to provide working capital for businesses impacted by the disaster, even if no physical damage occurred. Loan funds may be used to pay fixed debts, payroll, accounts payable, and other operating expenses that could not be met because of the disaster.
Loan amounts may reach up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofit organizations. Loan terms may extend up to 30 years. Officials said interest does not begin accruing and payments are not due until 12 months after the first loan disbursement.
Businesses may apply online through the SBA disaster assistance website. Additional information is available by calling the SBA Customer Service Center at 800-659-2955 or by email at disastercustomerservice@sba.gov.
While the application deadline is June 1st, the SBA said a 60-day grace period will remain in place for late submissions following the deadline.