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Daily Journal

Federal disaster loans still available for tornado damage

Letters from the Tholens' Landscape & Garden Center fence sign lay among the debris at the business along South Schuyler Avenue on March 13, 2026, following the March 10 tornado that caused widespread destruction in Kankakee County.

Letters from the Tholens' Landscape & Garden Center fence sign lay among the debris at the business along South Schuyler Avenue on March 13, 2026, following the March 10 tornado that caused widespread destruction in Kankakee County. (Tiffany Blanchette)

By Stephanie Markham

Although the Disaster Loan Outreach Centers in Kankakee County have closed, the U.S. Small Business Administration is still accepting applications for physical damage loans until June 8.

The federal agency is also accepting applications for Economic Injury Disaster Loans until Jan. 11, 2027.

The SBA is offering low-interest federal disaster loans for Illinois businesses, private nonprofits, and residents affected by the severe storm and tornado that occurred on March 10.

The SBA issued a disaster declaration in response to a request received from Gov. J.B. Pritzker on April 7.

The declaration covers the Illinois counties of Ford, Grundy, Iroquois, Kankakee, Livingston, and Will, as well as the Indiana counties of Lake and Newton 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 verified physical damage for mitigation purposes. Eligible mitigation improvements may 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.

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 which could not be 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 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.

For more information, impacted persons can visit SBA.gov/disaster, call (800) 659-2955, or email disastercustomerservice@sba.gov. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

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Stephanie Markham

Stephanie Markham joined the Daily Journal in February 2020 as the education reporter. She focuses on school boards as well as happenings and trends in local schools. She earned her B.A. in journalism from Eastern Illinois University.