Il. Treasurer makes loans available to flood victims

The Illinois Treasurer's Office is helping to make low-interest loans available to flood victims in southern Illinois.

Treasurer Dan Rutherford announced a partnership with local banks, including Banterra Bank, to offer the loans for businesses and homeowners at up to three-percent interest.

Rutherford says he's also made changes to the existing state loan program, which used to require a disaster declaration for property owners to be eligible for the loans.

The Disaster Recovery Program through the state will provide up to a half-billion dollars in low-interest loans... but Rutherford says he's willing to re-evaluate the number if totals go higher than that.

"If we get to the edge of that, and we are pushing that $500 million cumulative and LINK Deposit Programs, see me. And I will then look, and do an assessment, as is appropriate, on what further needs may be in the southern Illinois area. And I will not, let me make this clear: This treasurer will not let that limit stop us continuing to participate in the needs for the constituency here in southern Illinois," Rutherford said.

If the property owner lacks flood insurance, the loans must be repaid in five years. If insurance does cover the damage, the loans are usually bridge loans to cover costs until insurance money is received.

"If there's a disaster in your home... and you've got mold, and you've got mud, and you've got damage to your property in your business or your home, it doesn't matter what the federal government does as far as declaring a federal disaster area. It's a disaster for you," Rutherford said.

The loan program is open to people with or without flood insurance. Amounts are based on the damage estimate related to the disaster.

To begin the pre-qualification process, you must call the hotline: 866-523-0641. More information can be found at treasurer.il.gov.

Jennifer Fuller, WSIU

Posted in: Dan Rutherford,flooding,Jennifer Fuller