Tennessee Announces $4 Million in Grants for Unicoi County Businesses

News Summary

Governor Bill Lee has unveiled over $4 million in grants to support three businesses in Unicoi County, heavily impacted by Hurricane Helene. The funding, aimed at employee retention and retraining, will provide at least $1 million to each company affected. The initiative marks a first for the Tennessee Department of Economic and Community Development, which is responding directly to the natural disaster. The grants will help companies along the Nolichucky River recover and restore operations, ensuring job security for laid-off workers.

Tennessee Governor Bill Lee, along with Commissioner Stuart C. McWhorter, announced over $4 million in grants aimed at supporting three businesses in Unicoi County, significantly impacted by Hurricane Helene in September 2024. The funding, which allocates at least $1 million to each company, focuses on employee retention and retraining for those who were affected by job losses due to facility destruction.

The grants are specifically directed towards companies located along the Nolichucky River in the Erwin Riverview Industrial Park, many of which are still in the process of restarting operations or assessing the extent of the damage. This funding is a notable initiative as it marks the first time the Tennessee Department of Economic and Community Development has offered retraining or retention grants as a direct response to a natural disaster.

The businesses awarded grants include:

Foam Products Corporation, a leading fabricator specializing in foam insulation and packaging, has reported damages exceeding $20 million.
PlastiExports, a plastics manufacturer with over $14 million in damages, operates its headquarters in Mexico.
PolyPipe, which manufactures polyethylene pipe, faced the complete destruction of its building in Erwin.

The goal of these grants is to help these companies retain employees who were previously laid off due to the hurricane’s impact. Community leaders have expressed gratitude for the state’s support, highlighting the critical need for job restoration in the region. The representatives from the affected companies described the grants as an important investment in their workforce and a commitment to revitalizing the local job market.

Amid these developments, the Tennessee Department of Economic and Community Development is actively exploring additional financial assistance opportunities to further aid the recovery process from the devastating hurricane. However, it’s important to note that not all businesses in the industrial park have applied for grants. For instance, Impact Plastics, another company in the area, did not seek the grant despite losing six employees during the flooding.

This announcement comes in the wake of a district attorney clearing Impact Plastics of legal responsibility for any staff fatalities during the flooding. Local officials and businesses remain concerned about the timeliness of the state’s response compared with the relief efforts observed in North Carolina after similar disasters.

In addition to the state grants, the legislation proposed by the Tennessee General Assembly aims to create a comprehensive disaster relief package to support continuing recovery efforts in the affected areas. This package includes $110 million for local governments and a $100 million disaster response program to bolster recovery initiatives in Unicoi County and surrounding locations.

As the community rallies for sustained recovery, local leaders are highlighting the significance of restoring operational capabilities and creating jobs in the industrial park, emphasizing the need for ongoing support and resources from both state and federal levels to ensure a prompt recovery.