USDA Invests $500,000 to Spur Economic Development in East Palestine and Columbiana County

U.S. Department of Agriculture Rural Development Ohio State Director Jonathan Mccracken today announced that USDA is awarding a $500,000 Rural Business Development Grant to Valley Economic Development Partners to create a low-interest revolving loan fund to help small businesses in East Palestine and surrounding areas.

“The Biden Administration and USDA recognize that investing in the small businesses that power East Palestine will play a key role in ensuring a vibrant and resilient local economy in the year ahead.” said Mccracken. “Our aim is to provide additional resources to ensure that local businesses can recover, rebuild, and come back stronger than ever. USDA Rural Development is committed to the long-term economic recovery of the community.”

Following a Norfolk Southern train derailment in East Palestine, small businesses in and around Columbiana County, Ohio have faced significant uncertainty. In response to this need, USDA Rural Development is working with Valley Partners to make low interest loans available to small businesses in East Palestine and the immediate surrounding area. The loans will be short term, with rates as low as 1%.

As the initial round of funds are repaid, funds will be made available to all small businesses and entrepreneurs throughout Columbiana County at more regular rates and terms, helping to encourage growth and economic development throughout rural areas of the county.

Background:

The Rural Business Development Grant (RBDG) program is a competitive grant that provides funding for rural partners that finance and facilitate development of small and emerging rural businesses, help fund distance learning networks, and help fund employment related adult education programs.

To assist with business development, RBDGS may fund a broad array of activities that lead to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1 million in gross revenues.