Government Programs

Illinois Disaster Loan Deadline Nears for Businesses Affected by 2025 Water Contamination

The Small Business Administration says eligible businesses and private nonprofits in seven Illinois counties have until Aug. 6 to seek economic-injury disaster financing tied to algal bloom water contamination from July 10 through Aug. 1,

By Ethan Mercer ·

Key takeaways

  • The SBA is accepting Economic Injury Disaster Loan applications from eligible organizations in Clark, Coles, Cumberland, Douglas, Edgar, Moultrie and Shelby counties.
  • The program addresses disaster-related operating shortfalls and does not require physical property damage.
  • Financing can reach $2 million, with stated rates as low as 4% for small businesses and 3.625% for private nonprofits.
  • The SBA states that economic-injury applications submitted after Aug. 6 may be considered during a subsequent 60-day grace period.

SBA Sets Aug. 6 Economic-Injury Filing Deadline

The U.S. Small Business Administration has reminded Illinois small businesses and private nonprofit organizations that Aug. 6 is the deadline for economic-injury disaster loan applications connected to algal bloom water contamination that occurred from July 10, 2025, through Aug. 1, 2025.

The declaration applies to Clark, Coles, Cumberland, Douglas, Edgar, Moultrie and Shelby counties. Within those areas, the SBA’s Economic Injury Disaster Loan program is available to qualifying small businesses, small agricultural cooperatives and private nonprofit organizations, including faith-based organizations.

The agency also states that it will accept applications for 60 days following the deadline under a grace period. That timing is relevant for organizations assessing whether the contamination caused a measurable disruption to their cash flow or other operating obligations.

Program Focuses on Operating Capital Rather Than Property Repair

The disaster loans are intended for working-capital needs arising from the covered event. An eligible organization may have access to the program even when it did not sustain physical damage, according to the SBA.

Permitted uses include fixed debt payments, payroll, accounts payable and other bills that could not be paid because of the disaster. For affected borrowers, this makes the program a potential source of funding for business continuity expenses rather than a program limited to rebuilding damaged facilities or replacing physical assets.

Agricultural producers, farmers and ranchers are excluded from SBA disaster lending under this notice, except for small aquaculture enterprises. Small agricultural cooperatives are among the organization types listed as potentially eligible.

Terms Depend on Applicant Financial Condition

The SBA says loan amounts may be as high as $2 million. It lists rates as low as 4% for small businesses and 3.625% for private nonprofit organizations, with repayment terms of up to 30 years.

Interest will not begin accruing and payments will not be due until 12 months after the initial loan disbursement, the agency said. The SBA will determine the final amount and repayment terms based on the financial condition of each applicant.

Applications can be submitted through the SBA’s disaster assistance website. The agency also lists its Customer Service Center and disaster assistance email address as channels for program information.