The state of Illinois is offering low-interest disaster recovery loans for residents and businesses in northern Illinois that suffered damage from last weekend’s severe storms.

On Monday, Gov. Pat Quinn declared 12 northern Illinois counties disaster areas, after heavy storms on Saturday led to major flooding and property damage to many buildings and homes. The declaration means residents and business owners are eligible for below-market interest rates through participating lenders that they can use to finance repairs.

As of Tuesday, loan rates would be no more than 3.5 percent, according to Illinois State Treasurer Alexi Giannoulias, whose office oversees the loan program.

“Our program offers immediate relief to residents and business owners who are either underinsured or who need help making repairs before their insurance premiums arrive,” Giannoulias said.

The 12 counties declared disaster areas include: Carroll, Cook, DuPage, Henderson, Jo Daviess, Lee, Mercer, Ogle, Rock Island, Stephenson, Whiteside and Winnebago.

Applicants who expect insurance to cover their damages can qualify for one-year bridge loans with interest-only payments. These loans are designed to be paid off in one lump sum when the insurance payment arrives.

Applicans who are underinsured can qualify for low-interest loans with repayment terms of up to five years. Loans exceeding two years require a compliance review.

The state treasurer’s office plans to enroll local financial institutions in the program. Applications are due within 90 days of the state’s disaster declaration.