Minnesota PROMISE Act Funding to Support Disadvantaged Small Businesses is Becoming Available

Applications for the first round of funding from the Providing Resources & Opportunity & Maximizing Investments in Striving Entrepreneurs (PROMISE) Act are becoming available from the Neighborhood Development Center (NDC), the Minnesota Initiative Foundations and the Metropolitan Economic Development Association (MEDA). ?

The Minnesota PROMISE Act, created by the Minnesota Legislature in 2023, establishes two programs ? PROMISE Act Grants and PROMISE Act Loans ? that provide financial support for small businesses located in legislatively-designated communities and neighborhoods that have been adversely affected by structural racial discrimination, civil unrest, lack of access to capital, a loss of population or an aging population or a lack of regional economic diversification.

The PROMISE Act Grant program will provide $86.4 million in working capital grants and the PROMISE Act Loan program will provide $28 million in capital improvement loans in designated areas of the Twin Cities and in Greater Minnesota. In the Twin Cities, eligible geographic areas were established by legislation and include areas of North Minneapolis, South Minneapolis, the University/Midway area of St. Paul and the East Side of St. Paul. Learn more here about eligible Twin Cities communities and neighborhoods.

PROMISE Act Grants can be used for working capital to support payroll expenses, rent or mortgage payments, utility bills, equipment and other similar expenses that occur in the regular course of business. PROMISE Act Loans can be used for site acquisition and preparation, building construction, infrastructure, landscaping and other eligible capital improvement cost.

To be eligible for a grant, applicants must be a small business with less than $750,000 in gross revenue based on the 2021 tax year. To be eligible for a loan, applicants must be a small business with less than $1,000,000 in gross revenue based on the 2021 tax year.

In the Twin Cities area, PROMISE Act Grants are being administered by NDC and PROMISE Act Loans will be administered by MEDA. In Greater Minnesota, PROMISE Act Grants and PROMISE Act Loans will be administered by each of the six Minnesota Initiative Foundations in their respective service areas.

These organization are responsible for developing and implementing programs that will best serve their communities based on legislative requirements and guidelines established by the Department of Employment and Economic Development. These organizations have opened, or will soon open, applications for PROMISE Act funding.

Interested applicants should direct questions and apply directly through the partner organizations. Application periods depend on the individual partner organization. For more information on PROMISE Act grants and loans, please contact these organizations:

DEED Developments Blog

Subscribe to receive more information from DEED.