Sept.

15, 2008

Kati Phillips
(312) 814-5668
(773) 392-3809
kphillips@treasurer.state.il.us

Low-interest loans offered to storm victims

Residents in Cook, Kane counties now eligible
Low-interest loans are available to the owners of homes and businesses that sustained-
weather related damage during recent storms in Cook and Kane Counties, Illinois State
Treasurer Alexi Giannoulias said today.

Under the Opportunity Illinois: Disaster Recovery Loan Program, the Treasurer’s Office obtains
below-market interest rates for storm victims in declared disaster areas who finance their
disaster repairs through participating lenders.

Kane County Board Chairman Karen McConnaughay signed a county disaster declaration
Sept. 13 after almost 8 inches of rain flooded homes, businesses and roads. Cook County
Board President Todd Stroger declared a state of emergency on Sept. 14 after heavy rain
damaged buildings and roadways and led to many flood-related displacements.

The formal declarations, which make Kane and Cook counties eligible for the Opportunity
Illinois: Disaster Recovery Program, are the first step toward obtaining federal assistance.

Through the State Treasurer’s Office, residents and businesses that expect insurance to cover
their damages can qualify for one-year bridge loans with interest-only payments. These loans
are designed to be paid off in one lump sum when insurance or aid comes through.

Underinsured residents and businesses can qualify for low-interest loans with repayment terms
of up to five years. The underinsured storm victims must make payments on the interest and
principal for loans exceeding one year. Also, loans with terms longer than two years require a
compliance review.
“Many times, storm victims need to make immediate repairs to their homes and businesses
while they wait for insurance or aid payments,” Giannoulias said. “We help them obtain
affordable rates so they can rebuild and get their lives back on track without delay.”

To participate in the Disaster Recovery Loan Program, borrowers must:

• Own damaged property in an area declared a local, state or federal disaster area
• Secure a loan up to their damage amount with a participating lender
• File the application within 90 days of the state or federal disaster declaration
• Use the money for disaster recovery

For more information on applying for a loan, finding a participating financial institution, or
becoming a participating financial institution, call the Disaster Recovery hotline at (866) 523-
0641 or email opportunityillinois@treasurer.state.il.us.