Business Development

Forgivable Loans Available
The East Palestine Emergency Support Program was created by the Ohio Department of Development to provide loans to assist with ongoing expenses and recovery efforts for businesses impacted by the February 2023 train derailment. For-profit and non-profit businesses located within a two-mile radius of East Palestine that were operational on or prior to Dec. 1, 2022, are eligible to apply. The loans are 0% interest and range from $10,000 to $1 million. The loans are forgivable if utilized for payroll, employee benefits, rent or mortgage payments, utility expenses, worker protection, or inventory replacement expenses related to the train derailment. Please be aware applicants will need to document financial impacts from the derailment. Apply at development.ohio.gov/EastPalestine.

Community Reinvestment Area Property Tax Exemptions
The Village of East Palestine has the ability to incentivize property owners to build new buildings and  homes, expand buildings and homes or significantly renovate buildings and homes through the Community Reinvestment Area (CRA) program. Property owners can receive a property tax exemption on the value of the “new” improvements (new construction or renovation value, not the existing taxable value). Businesses must make an application for the tax exemption prior to starting construction. The tax exemption on improvements can last up to 15 years depending upon project details The entire corporate limits of the village are encompassed by the CRA, so any property in the village could potentially qualify. For more information on the CRA, please review the online application form and read the news article for details. 

Gap Financing Programs

Ohio offers multiple loans to bridge the gap between what a bank will loan and what a project needs.

HERE ARE SOME OPTIONS IN EAST PALESTINE:

SBA 504 Loan

Finance up to 40% of project land, building and equipment costs, capped at $5 million. The business must create 1 job for every $75,000 borrowed or $125,000 for every manufacturing job created.

Regional 166 Loan

For real estate and equipment in manufacturing, distribution, tech and other sectors. (Restaurants, retail, hospitality and service businesses generally ineligible). The 166 Loan can finance up to 45% of project costs, capped at $500,000. Loans will also be capped at $100,000 per job to be created.

Valley Partners Revolving Loan Funds

Various programs exist. Some can finance working capital in addition to real estate and equipment. Eligibility and financing terms will vary by loan source. OMEGA Revolving Loan Funds – OMEGA can finance fixed assets and working capital at generally below market rates.

Learn more at valleyedp.com/compare or omegadistrict.org/programs/business-development/rlf/

Job Creation Incentives

Companies in the JobsOhio Target sectors (typically manufacturing, distribution or high tech) can be eligible for grants, loans, state tax credits and training assistance. Projects must involve a new capital investment and net new job creation in Ohio. Projects must also involve a competitive location decision where Ohio is competing with another state. Lake to River is the JobsOhio Regional Network Partner that can assist in accessing these programs.

Learn more at (330) 886-8973 or laketoriverohio.org

Columbiana County Port Authority Bond Financing

The Columbiana County Port Authority (CCPA) is the lead development entity for Columbiana County. As a port authority, CCPA has the ability to offer industrial development bond financing for eligible, credit-worthy projects. Bond financing can offer long-term, fixed rate, and slightly below market financing. Tax advantages may also be possible. Not every project will qualify. Strict underwriting requirements will apply.

For more information, contact the Columbiana County Port Authority at (330) 424-1800 or go to ccpa-ohioriver.com.