ST. LOUIS, Mo. (First Alert 4) – A troubled program that has faced years of scrutiny is back on track, according to officials, but critics say the process remains questionable.
The North St. Louis Small Business and Nonprofit Grant Program was designed to help local businesses and nonprofits struggling during the pandemic. First Alert 4 Investigates reporting over the past several years has raised serious questions about how COVID relief funds were being awarded.
The program faced significant delays in distributing funds, and when grant awards were finally announced, new controversies arose regarding who was receiving the money.
The state auditor launched an investigation, and the former city comptroller called for a complete overhaul of the program.
But after significant changes in leadership and reviews of the awardees, the St. Louis Development Corporation Board voted Thursday to move forward with key changes to the distribution of pandemic-related funds.
SLDC has now awarded close to $25 million to around 40 businesses and nonprofits—including some familiar organizations like the Herbert Hoover Boys and Girls Clubs, Annie Malone Children’s Home and Sweetie Pie’s Upper Crust.
However, significant changes have been implemented. The board has cancelled the smaller $12,500 grants that were labeled as consolation prizes for entities that didn’t receive bigger awards. Some of the initial grant awards that drew the most controversy—including those with connections to an SLDC board member and a former mayor—have been rescinded from consideration.
Despite these changes, a letter sent by some business owners Wednesday continues to question the selection process. Critics are particularly concerned about why money is being distributed while an ongoing audit of the program remains underway.
The deadline to spend all the federal funds is the end of this year. If the money is not distributed by then, the federal government could claw it back.
A spokesperson for the state auditor confirms they are getting closer to wrapping up their investigation of the program. Additionally, a federal lawsuit challenging the program remains ongoing.
As this story continues to develop, First Alert 4 Investigates will track the outcome of both the audit and the legal challenge.
Copyright 2026 KMOV. All rights reserved.
