EAST PALESTINE — Village Council has approved establishing a small business grant fund.

During the June 8 meeting council passed an ordinance establishing the small business grant fund, also known as the East Palestine Business Vibrancy Grant Program.

Village Manager Antonio Diaz-Guy said the fund will be used to issue small 50/50 matching funds for projects including building improvements, equipment, property repairs, and more.

“This is part of our much broader attempts to become business friendly and help businesses make investments in themselves, by alleviating the risk and cost of such investments,” he said.

According to the ordinance, the fund is being established in part with settlement money from the 2023 Norfolk Southern train derailment, which “adversely impacted local business and commercial activity.”

The village will use $25,000 of the settlement funds to kickstart the grant program.

Remaining funds will come from future revenue derived from vacant structures registration fees, and future mobile vendor and transient vendor fees, and any other funds designated by council through future separate legislation.

Also according to the ordinance, the program will operate on a rolling basis, where applications are reviewed and awards made on a first come, first serve basis.

Grant funds are able to be used for exterior and business-visible improvements like exterior lighting, signage and branding, facade, exterior painting, code compliance, and exterior structural or aesthetic upgrades.

New businesses in the village may also apply for startup-related assistance, including initial rent or occupancy costs.

There shall be a maximum of 12 awards made annually, the ordinance states.

Each individual grant award will not exceed $2,500 and a 50 percent match is required from applicants.

Those eligible to seek grant funding are business owners operating within the municipal limits of East Palestine, including tenants (with owner approval) or owner operators; and owners of commercial property located within the municipal limits.

Applicants must be in good standing with the village, with no delinquent village utility accounts, no unpaid fines or assessments, and no unresolved zoning code enforcements or violations, and be in compliance with all taxes.

Multi-tenant property owners may apply for multiple improvements, subject to administrative review and funding availability, the ordinance states.

Home-based businesses, such as home occupations and cottage industry businesses, are not eligible for the program.

The ordinance also gives council the right to prioritize businesses along Market, Main and Taggart streets, if council so chooses.