Ohio Governor Mike DeWine, Lt. Governor Jon Husted, State Senator Michael Rulli (R-Salem), and State Representative Monica Blasdel (R-Columbiana County) announced that the state of Ohio is offering zero-interest, forgivable loans of up to $1 million to businesses affected by the catastrophic East Palestine train derailment earlier this year.
This form of direct financial aid from the state is being provided for the first time to people who own businesses or other residents who have incurred economic losses following the February 3rd Norfolk Southern derailment, which spilled toxic chemicals into the village.
According to DeWine, these loans are building on the state of Ohio’s commitment to supporting East Palestine’s families more than four months ago.
“This program is essential for long-term recovery, giving the businesses impacted by this tragedy more support to recover and thrive,” DeWine said.
The East Palestine Emergency Support Program administered by the Ohio Department of Development is to provide 0 percent interest, forgivable loans to businesses to assist with ongoing expenses and recovery efforts associated with the train derailment. The program was created in partnership with the Ohio General Assembly with funds from the Controlling Board Emergency Purposes/Contingencies Fund.
Rulli said he is grateful for these critical relief dollars to help small businesses in the village recover.
“The recovery efforts and ongoing support we have seen in East Palestine are truly remarkable. I am grateful for the Controlling Board’s approval of these critical relief dollars that will help small businesses in my community continue to recover. It is crucial we continue to do all we can to ensure our small businesses have what they need to thrive once again,” Rulli said.
Businesses in Ohio, both for-profit and nonprofit, within a two-mile radius of East Palestine that was open on December 1, 2022, or earlier, are qualified to qualify for loans ranging from $10,000 to $1 million. Businesses cannot apply for loans that exceed their gross revenue in 2022.
A total of $5 million in loans will be made available. The state will forgive loans given to businesses if they spent money on utilities, worker safety, and equipment connected to the railway catastrophe, payroll, employee benefits, rent or mortgage payments, or inventory replacement due to the train derailment. Loan funds cannot be used to cover the costs of business owners’ private residences.
Blasdel said the ability to access flexible, zero-interest assistance will help rebuild the village and show that East Palestine is back in business.
“The announcement of this program is an example of how we have continued to work with the administration to hold Norfolk Southern accountable while providing necessary resources for the East Palestine community,” Blasdel said.
Lt. Governor Husted said this program aims to help East Palestine businesses recover from the earlier year’s toxic train derailment.
“Businesses play an important role in our communities, creating jobs and boosting the economy. This program aims to provide necessary assistance to help East Palestine businesses recover and rebuild so this community can come back stronger,” Husted said.
On February 3rd, 50 train carriages, 10 of which were carrying hazardous materials, derailed as a result of a technical problem with a rail car axle, according to federal authorities. There was vinyl chloride in five of the vehicles. Hundreds of residents evacuated due to the controlled release of poisonous gasses that Norfolk Southern carried out on February 6th to stop an explosion.
Officials told East Palestine residents on February 8th that they could safely go home, despite the reports of hundreds of dead fish in the Ohio River near East Palestine and residents complaining of headaches and illness since the derailment.
Despite assurances from government officials that they are safe, many members of the community said they are fearful and nervous about their exposure to the chemicals and said they are concerned about the quality of the air and drinking water. Some residents chose to stay in hotels until officials convinced them that their homes were safe.
Since the derailment, Norfolk Southern has provided the East Palestine region with tens of millions of dollars in financial aid and has set up a fund to compensate local landowners for drops in their property values.
Norfolk Southern faces a lawsuit from Ohio’s Attorney General Dave Yost over costs for the cleanup of the toxic chemical spill and environmental damage, even as they collaborate to establish funds for resident health care, property value issues, and water protections. The federal government is also suing the railroad.
Norfolk Southern is also facing a special investigation launched last month by the National Transportation Safety Board that it said will look into the company’s organization and safety.
Up until now, Ohio’s help to East Palestine has taken the shape of various services, including a free medical clinic for locals who have complained of experiencing headaches, breathing issues, and other ailments after the derailment.
According to the Ohio EPA, Norfolk Southern has hauled approximately 20.2 million gallons of liquid wastewater out of East Palestine. There is a pile of approximately 11,400 tons of excavated soil waiting for removal from East Palestine versus 66,300 tons that Norfolk Southern has removed.
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Hannah Poling is a lead reporter at The Ohio Star and The Star News Network. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected]
Photo “Mike DeWine” by Governor Mike DeWine. Photo “Jon Husted” by Ohio Lt. Governor Jon Husted. Photo “Michael Rulli” by The Ohio Senate. Photo “Monica Robb Blasdel” by Ohio House of Representatives. Background Photo “East Palestine, Ohio” by 636Buster. CC BY-SA 4.0.
