State Treasurer encourages use of low-interest loan program for flood victims
Online Staff Report
SPRINGFIELD, Ill. — With recent flooding in various communities throughout the state, Illinois State Treasurer Dan Rutherford (R) wants to remind flood victims that aid is available through the treasurer’s Disaster Recovery Linked Deposit Program.
Disaster Recovery helps residents, businesses and farmers obtain low-interest loans to recover from weather-related damage to their property. After a loan is approved, the state makes a deposit into the financial institution, which helps lower the interest rate to the borrower, effectively making the repairs more affordable. The maximum interest rate for qualifying borrowers is 2.36 percent for a two-year loan and 2.69 percent for a three-year loan for the month of April 2013. The rate is locked in for the duration of the period. The program caps the interest rate at 3 percent for qualified borrowers at participating financial institutions.
“My heart goes out to all the people in Illinois who are dealing with significant flooding,” said Rutherford. “I have seen homes under water, and I can only imagine what families are going through. As Illinoisans work together to restore their homes and communities, keep in mind that my Disaster Recovery program is available to help as many victims deal with the damages left by this devastating flooding. It is touching to see how the citizens of our great state come together to ensure the safety of their neighbors during this flood.”
Flood victims who expect insurance to eventually cover their costs can use the Disaster Recovery program as a “bridge loan” for one year until their reimbursement arrives; those who sustain damage on uninsured property are allowed up to five years to repay their loans.
For the application and additional information about which financial institutions are offering Disaster Recovery loans, visit www.treasurer.il.gov and click on the Disaster Recovery page or call the Illinois State Treasurer’s Disaster Recovery Hotline at 866-523-0641.
Posted April 26, 2013