ST. LOUIS — Last week, the St. Louis Development Corporation (SLDC) announced it had awarded 900 businesses across the city with $5,000 grants, representing a $4.5 million total allocation from the city. The fund was allocated under the American Rescue Plan Act (ARPA).
“The Small Business Grant Program directly infused much-needed capital into businesses, and we are proud that 76% of funds were deployed into HUD Qualified Tracks (QCTs) in North and South City,” said Neal Richardson, President & CEO of St. Louis Development Corporation.
“When our small businesses succeed, our neighborhoods succeed,” said Mayor Tishaura O. Jones in an SLDC press release. “This successful program is yet another way St. Louis is deploying our resources to strengthen communities across our city and support the local small businesses that residents know and love.”
The program was funded in whole or in part with Coronavirus State and Local Fiscal Recovery Funds (SLFRF) passed through the St. Louis City Community Development Administration. The grants, Richardson further explained, reached parts of the city “that have long been neglected and traditionally face challenges accessing capital.”
Small businesses disproportionately impacted by the pandemic, operating within city limits, qualified to apply for the grant. If they were not located in a QCT, applicants had to document how they had been adversely impacted by COVID.
The program, announced last year, was designed to help small businesses still on the road to recovery from the economic impact of the pandemic. The $5,000 grants can be used to cover costs such as payroll, rent, utilities and securing inventory.
To be eligible, applicants had to have a business located in the City of St. Louis, have 25 or fewer employees, be current on all city taxes, demonstrate COVID-19 hardship, and must have and maintain an active City of St. Louis Business License.
DeNay Reynolds, owner of Devi's Extended Care, a home health care enterprise on Delmar at Union Blvd., was grateful to be one of the businesses awarded a grant. An avid reader, Reynolds said she read about the grant, went to the SLDC site and applied. The application process, she added, “went smoothly if you had all your paperwork in order.” She’s ecstatic to be an awardee.
“It’s a blessing because it gives me an opportunity to grow my new business,” Reynolds said. She named her business in honor of her daughter, Devorah, who passed away in 2016. Devorah, she said, was passionate about “caring for others.”
Reynolds, who wears many hats including fitness instructor and nutritionist, said she plans to do much more than home health care. The grant, she said, will go a long way in helping staff the enterprise, including someone to oversee operations.
Theodore Higginbotham said he was hit hard by the pandemic. He saw a drop in his business, Higgs Taping and Painting in North St. Louis, mostly, he said, “because people didn’t want anyone in their houses.” Higginbotham added that it was hard getting materials due to people losing their jobs and the closure of some of his suppliers.
A friend told Higginbotham about SLDC’s grant program for small businesses and he applied. The paperwork was extensive, he said, but, for the most part, the application process was manageable. Higginbotham has two full-time employees. Because he wears many operational hats, the grant, he said, will be a tremendous help.
“Oh, man, payroll, material … there’s no question it will help out,” Higginbotham said, adding: “The thing with small businesses is that we don’t have access to banks like other companies. The fact that we were awarded will absolutely help.”
As a former business owner, Mayor Jones said she was pleased to creatively use ARPA funds to help small, struggling businesses.
“I know how challenging running a business can be, and the pandemic has made the chances for success even more difficult,” Jones said. “St. Louis cannot move forward from the pandemic if we leave our entrepreneurs and small business owners behind.”
Richardson agrees.
“Small businesses are at the center of building a more resilient and vibrant economy in response to COVID-19. These grant dollars will provide business owners with the ability to support their employees, better serve their customers and contribute to the economic growth of the neighborhoods in which they operate.”