MN Promise Act Grant Program
The MN PROMISE Act grant program to support disadvantaged small businesses located in certain neighborhoods around Minnesota.
This program funding was approved by the Minnesota State Legislature and signed into law by Governor Tim Walz during the 2023 legislative session. The Minnesota Department of Employment and Economic Development (MN DEED) is responsible for overseeing this statewide program. This program, through a few CDFI statewide partner organizations, will offer access to grants and loans to eligible businesses in specific communities.
This state-funded program is focused on distributing grants to support the growth and repositioning of Minnesota small businesses that are located, or who operate in neighborhoods/communities that have been adversely affected by:
Structural racial discrimination
Civil unrest
Lack of access to capital
A loss of population
An aging population
A lack of regional economic diversification
Specific neighborhoods in Minneapolis, Saint Paul and greater-Minnesota have been selected as eligible for this funding based on the above criteria by MN DEED in partnership with community organizations. A total of $72,280,000 ($36,140,000 / year) will be granted to eligible applicants for business repositioning or growth.
The first round of MN PROMISE Act grants will open on June 3, 2024. Applicants will have until June 30, 2024 to submit.
Eligibility Requirements
To be eligible for the MN PROMISE Act program in 2024 the applying business must meet three requirements:
Active Minnesota business with two-years of state and federal tax returns: 2021 & 2022 or 2022 & 2023
A business who has gross annual revenues of $1,000,000 or less, for the loan program, and $750,000 or less, for the grant program, as indicated on the earlier year of submitted tax returns.
Businesses must be located in specific geographic areas of Minnesota (see map below)
MN Promise Act Extension for Hennepin Ave S: Senator Dibble and Representative Hornstein were successful in expanding the Promise Act funding and eligibility to the hard-hit stretches of the Hennepin Ave S commercial corridor, opening up a critical grant opportunity for small businesses struggling with pandemic recovery and the street reconstruction work now underway. Through the Neighborhood Development Center as the administrator, the State will distribute direct relief of up to $50k to eligible businesses who apply, with the total capped at $1m for this area. The expansion geographic area and timing are to be determined.
Nonprofit-Specific Guidelines: In addition to meeting all the above requirements, in order to qualify for this grant, nonprofit organizations must earn at least 10% of its total annual revenue through the sale of goods or services.
Eligible Uses
Working capital
Payroll expenses
Rent or mortgage payments
Utility bills
Equipment
Other expenses that occur in the regular course of business.
Contact Lake Street Council staff for assistance to determining your eligibility. Lake Street Council is hosting two in-person workshops on the application process:
Thursday, June 6 5:00 - 7:30 pm at Bremer Bank with Spanish translation
Thursday, June 13 6:00 - 8:00 pm at African Development Center with Somali translation
*MN PROMISE Act Loans and Grants and not administered by the Lake Street Council