St. Louis Launches Economic Justice Accelerator, Announces New Opportunities to Engage and Invest in Key Neighborhoods Across the City
SLDC Moves Economic Justice Action Plan Forward, Accepts $1 Million Grant from Mastercard Impact Fund
St. Louis, Mo. (March 14, 2023) – To commemorate 314 Day, Mayor Tishaura O. Jones and the St. Louis Development Corporation (SLDC) announced the formation of the Economic Justice Accelerator, a fund designed to leverage public funding, private equity and philanthropic investment to sustain the Economic Justice Action Plan through and beyond 2026. Additional programs and opportunities aimed at closing the wealth gap through affordable housing and homeownership, access to low-cost capital for small/minority- and women-owned businesses and investing in neighborhood revitalization were also announced.
“Reversing historic wrongs in our communities is not just a moral imperative; it’s essential to make sure our city can thrive equally across neighborhoods and racial lines,” said Mayor Jones. “While the city is making this major investment in our neighborhoods, turning back decades of disinvestment in our communities will require years of work as well as collaboration between the public and private sector to bring about much-needed change. The outcome is a stronger, more sustainable city for us all because St. Louis cannot succeed if one half of our city is allowed to fail.”
St. Louis has an unprecedented opportunity to leverage $246 million in city and federal ARPA commitments to cocreate a more vibrant, just, and growing economy in which all St. Louisans can thrive.
“The Economic Justice Accelerator will attract and leverage public, private and philanthropic capital to the City of St. Louis to invest in catalytic projects led by women and minority business owners and developers in strategic neighborhoods, programs targeted to create economic mobility and products to provide access to capital for all to thrive,” said Neal Richardson, President & CEO of the St. Louis Development Corporation. “We have partnered with nationally and locally recognized experts to create the Accelerator, identify, prioritize, vet, fund and build capacity for the projects, programs and products.”
Economic Development & Transformation Fund
To support economic development activity, in partnership with the City and SLDC, the St. Louis Community Foundation established the Economic Development & Transformation Fund. The philanthropic capital raised through the Transformation Fund will be used to catalyze additional public and private funding focused on economic justice.
Initial Support from Mastercard
The Mastercard Impact Fund, with support from the Mastercard Center for Inclusive Growth, is the first private donor to commit to the Economic Justice Accelerator Fund through a $1 million grant, which will support small business programming at the Northside Economic Empowerment Center. Programming will include technical assistance, mentorship, access to capital for minority- and women-owned businesses, as well as workforce development services.
Today’s announcement builds on Mastercard’s commitment to St. Louis-based small businesses and the launch of Digital Doors STL, an online platform built for St. Louis entrepreneurs and small business owners, providing them with always-on content and resources to help their businesses grow, which was introduced last year. Mastercard is also investing in St. Louis through its In Solidarity initiative, a $500 million commitment to help close the racial wealth and opportunity gap for black communities across America.
“One thing we’ve learned through working with cities like St. Louis is that fostering inclusive, sustainable economic growth doesn’t happen overnight — it arises from meaningful, long-term, and close-knit partnerships,” said Salah Goss, Senior Vice President, Mastercard Center for Inclusive Growth. “We are thrilled to be able to play a role in launching the Economic Justice Accelerator Fund, and we look forward to watching the mark it makes in the city’s efforts to create a bright and equitable future.”
$35.5 Million of Upcoming Funding Opportunities Released
In addition to the Accelerator announcement, details were also shared about several new programs being dispersed to the community as a result of the Economic Justice Act (BB125) signed by Mayor Jones in January 2023 to direct $93 million to disinvested communities, including:
Down Payment Assistance Program - $4 Million
Forgivable Loan Down Payment Assistance Program for households with income that does not exceed 80% AMI, targeting City of St. Louis Employees, homebuyers of the SLDC New Market Tax Credit Neighborhood Housing Access developments by Tabernacle CDC and Habitat for Humanity and homebuyers of homes located in HUD designated Qualified Census Tracts (QCTs).
Contractor Revolving Loan Fund - $2.5 Million
Short-term loans to small construction contractors to build capacity by providing a bridge loan for cash flow while contractors navigate the 30-60-90 day or more construction pay process and/or other approved funding delays.
Small Business & Not For Profit Revolving Loan Fund - $2.5 Million
Loan program to be administered by a not for profit that will provide short-term loans to small businesses and not for profits to meet immediate capacity building and cash flow needs and intermediate growth and expansion capital needs.
If approved by the SLDC Board of Directors on March 16, RFQs for these programs will be released on March 17, and will be available here.
LRA Neighborhood Beautification Fund - $6.5 Million
On March 29, the Land Reutilization Authority (LRA) Commission will consider allocating funds to a program to identify and select Private Lawn Maintenance Crews to provide grass cutting, tree trimming, clean-up and planting services for LRA-owned parcels.
Click here for a timeline of when funds will be available for each of these programs.
Neighborhood Transformation Grants - $20 Million
Nahuel Fefer, Executive Director of the Community Development Administration, announced the release of a Neighborhood Transformation Grants NOFA (Notice of Funding Availability) for more than $20 million in grants available for Community Development Projects. CDA seeks project proposals for neighborhood beautification, home repair, housing production, proactive development and capacity building in Qualified Census Tracts (QCTs). Learn more about the Neighborhood Transformation Grants.
Roadmap for Redevelopment of City-Owned Priority Projects
In 2022, SLDC identified several key city-owned priority projects within the Economic Justice demonstration areas that will catalyze equitable economic growth. Today, a roadmap for innovative and inclusive redevelopment of these sites was unveiled.
“We are allocating human and financial resources to seven of these projects to accelerate development and ensure the community surrounding the target sites can help direct and select the right project for their neighborhood,” said SLDC’s SVP of Neighborhood & Community Transformation and Director of Real Estate, Lance Knuckles. “We plan to take ownership to stabilize these key sites, while initiating a transparent and equitable process for selecting redevelopers and designers in partnership with the community. We will make technical assistance available and promote joint ventures to support non-profits, CDCs and other organizations to respond to these opportunities.”
Learn more about the Roadmap for Redevelopment of City-Owned Priority Projects.
Economic Justice In Action: $23.5 Million Already in Community
Mayor Jones also shared updates and early outcomes on the $23.5 million of Economic Justice funds that are already in community, including:
$4 Million – Funded Grants to 800 Small Businesses
$14 Million – Developer Loan Fund for 50 Affordable For-Sale Homes in QCTs for Families at 80% AMI
$1.5 Million – Northside Economic Empowerment Center to Support Small Businesses
$4 Million – Six Developers to Preserve & Produce 218 Rental Units for Families at 30% AMI and Below
