St. Louis officials have pulled the plug on plans to send $12,500 consolation checks to more than 150 applicants in the North Side small-business and nonprofit grant program, leaving would-be recipients in limbo. The about-face follows weeks of scrutiny over who actually qualified for the awards and whether federal ARPA dollars were going to legitimate, operating businesses as intended.
According to the St. Louis Post-Dispatch, city officials canceled the $12,500 payments after revisiting the award list, which included a large number of conditional or consolation grants. Reporters dug through program records and flagged dozens of winners whose eligibility or locations raised eyebrows.
Program already under scrutiny
The North Side grant rollout has drawn fire since day one, with critics pointing to awards tied to organizations or addresses that did not look much like functioning neighborhood businesses. In December 2024, the St. Louis Development Corporation paused then resumed payments and posted application files and score sheets to a new transparency portal in response to criticism, according to St. Louis Public Radio.
Program scale and earlier awards
The program initially identified roughly 295 businesses and nonprofits for grants totaling more than $30 million, a scale that guaranteed extra attention once questions arose about how thoroughly applicants were vetted, as reported by the St. Louis Business Journal.
Audit and accountability questions
The Missouri State Auditor launched an audit after receiving whistleblower complaints about the program. The review cited “several red flags” and warned of “possible improper governmental activity,” St. Louis Public Radio reported. That probe, combined with sustained media coverage, pushed city officials to revisit the award list and halt additional disbursements while the review plays out.
What reporters found
Post-Dispatch reporters, who examined records for each of the 444 entities listed as winners, found awards tied to vacant or boarded-up buildings and to entities whose connections to north St. Louis were unclear. The paper reported that before the reversal, the city had planned $12,500 consolation payments for more than 150 applicants. In response to the findings, officials told the paper they would hold back those smaller payouts and conduct more extensive vetting, according to the St. Louis Post-Dispatch.
Next steps for applicants
SLDC created the transparency portal to make applications and scoring public while staffers verify business licenses and tax compliance, an effort covered by First Alert 4. With the state audit still underway and the consolation payments on ice, many applicants now have no clear timeline for when, or if, any money might actually arrive…