Low-interest loans made available to flood victims

By Tara Fasol

The Southern Illinoisan, Carbondale, IL
Published Monday, March 24, 2008

Subsiding floodwaters are a big relief to residents of Southern Illinois who were affected by last week's extra wet weather but State Treasurer Alexi Giannoulias said he wants to offer victims monetary aid, as well.

The treasurer's office has made low-interest loan funds available to residents in 19 counties that experienced flooding.

Residents in Alexander, Fayette, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jefferson, Johnson, Massac, Perry, Pope, Pulaski, Randolph, Saline, Union, White and Williamson counties can apply for the loans made available through the Illinois Disaster Recovery Loan program.

"This is an opportunity for Southern Illinois residents to get their lives back on track faster," Giannoulias said in a release. "Waiting months for insurance settlements can be very frustrating and we want to help as much as we can in the meantime."

Residents can secure the amount equal to the damage amount and can do so at any bank or financial institution that participates in the state's linked deposit program. The bank must file the Opportunity Illinois loan application on behalf of the residents, within 90 days from the date that the county was hit by the flood.

The release said March 20 is being considered the date from which the countdown will start in Southern Illinois.

"At this point it is another option," said Ryan Buckingham, Franklin County Emergency Management Agency director. "I think there are a lot of homeowners with significant damage that will find this program useful. I would encourage them to contact the hotline number and see if it is fitting as a good option for them."

Residents with insurance can apply for an amount to cover the cost of repairs. Those without insurance coverage can apply for low-interest loans that cover the damage costs with interest-only payments for one year, or interest and principal payments for up to five years.

Borrowers can currently lock in an interest rate no higher than 4.5 percent.

Since the program's start in May 1995, the treasurer's office has backed more than $48.6 million in loans to storm victims across Illinois.

For more information contact the Disaster Recovery hotline at (866) 523-0641.