SBA Disaster Declaration Denied In Flossmoor

FLOSSMOOR, IL - Property damage that homeowners may have received during the Sept. 27 storm event in Flossmoor and surrounding area will not qualify for a Small Business Administration declaration, according to Flossmoor village officials. The disaster declaration would have triggered financial assistance in the form of low-interest loans to businesses and residents affected by the flood.

The director of the Cook County Department of Homeland Security informed village officials last week that the damages the village and other nearby areas sustained from the flood did not meet the threshold criteria established by the SBA, which administers the relief program.

The Small Business Administration criteria takes into consideration the magnitude of the uninsured losses sustained from a flood event. According to the SBA, a disaster declaration can only be declared if 25 or more homes or businesses in the affected area sustain uninsured losses equating to at least 40 percent of the market or replacement value of the home or business.

While more than 120 Flossmoor residents and businesses reported damage due to the flood, according to Cook County officials, the loss in Flossmoor and surrounding areas did not meet the target. As an example, a 40 percent loss on a home valued at $300,000 would be damages of $120,000. The Cook County evaluation also considered damage to homes in Chicago Heights, Peotone and Richton Park as part of the assessment.

“We are disappointed in the news that the disaster declaration and the corresponding financial assistance to our property owners will not come to fruition,” Bridget Wachtel, the village manager said. "Moving forward, the village is focusing on funding for infrastructure projects that will reduce the risk of similar damage in the future.”

According to Wachtel, village staff recently met with local legislators to communicate the critical nature of infrastructure projects and how state and federal assistance will be needed in the Flossmoor.

She added that village staff and elected officials will continue to seek out all opportunities for grant funding through federal and state sources.