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EAST PALESTINE -- Support is on the way for 18 East Palestine businesses impacted by the Feb. 3 Norfolk Southern train derailment. On Friday, Ohio Gov. Mike DeWine and Ohio Department of Development Director Lydia Mihalik reported a total of more than $3.3 million in forgivable loans will be given to assist the businesses recover from the rail disaster as part of the East Palestine Emergency Support Program.
"The strong business community here in East Palestine is more than just the backbone of the local economy, it's the heart and soul of this town," said DeWine via a press release from the Ohio Department of Development. "By supporting these businesses, we're giving them the tools to recover and restore jobs, services and the vibrancy of their community."
DeWine, Lt. Gov. Jon Husted, Ohio Senator Michael Rulli (R-Salem) and Rep. Monica Blasdel (R-Columbiana County) announced the program in a joint press release in June and businesses impacted by the derailment were able to submit applications for funding in August. The emergency support program, which allocates up to $5 million to assist East Palestine businesses impacted by the February train derailment, was created in partnership with the Ohio General Assembly with funds from the Controlling Board Emergency Purposes/Contingencies Fund.
The program was designed to provide zero-interest, forgivable loans to businesses to assist with ongoing expenses and recovery efforts associated with the derailment. To be eligible for the program, for-profit and nonprofit businesses must be located within a 2-mile radius of East Palestine in Ohio and operational on or prior to Dec. 1, 2022. Loans ranging from $10,000 to $1 million with up to a 15-year term with no principal due for up to the first two years of the loan term will be eligible for forgiveness if used for payroll, employee benefits, rent or mortgage payments, utility expenses, worker protection related to the train derailment (protective gear, remediation measures, improvement of indoor air quality/upgrades to HVAC systems) and inventory replacement expenses associated with disaster.
The businesses receiving funding are Strohecker Incorporated ($965,145.97), Fuller Hardware ($3,107.87), TRIPCO ($150,000), Ohio Valley Foods, ($566,127), Columbiana Sanitation Industries ($62,250), McKim's Honeyvine ($37,400.50), Medart ($526,083.36), Brave Industries ($134,500), Cardinal Welding ($232,021.76), Bea's Insurance Agency ($36,518), Linsley-Royal Funeral Home ($160,683.50), Gorby's Grocery ($97,721.25), Hardcastle Realty ($80,066.76), Enchanted Salon ($18,871.50), 1820 House ($66,531.25), DAH Realty ($95,202), EPO2 ($15,162) and Bush Heating ($87,774).
"The economic health of East Palestine relies on the resilience of its businesses," said Mihalik. "The impact of these loans goes beyond dollars and cents - it's about positioning these businesses for recovery and long-term success."
East Palestine Mayor Trent Conaway said the funds will help the village rebound and repair economic health in East Palestine.
"These loans are an important step to getting our community back to normal and making sure that our businesses are taken care of," said Conaway. "It's good to know that the state has our back as we continue on the path to recovery as a community."
Additional loan applications are currently under review by the Ohio Department of Development. Eligible Ohio businesses can still apply for a loan through the online application available at development.ohio.gov/EastPalestine.
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