PROMISE Act Grants is sponsored by Minnesota Department of Employment and Economic Development (DEED). Offers grants to small businesses for revitalization efforts, investing in business operations and expansion.

Promise Act Grant Program / Minnesota Department of Employment and Economic Development Promise Act Grant Program Interested applicants should apply directly through our partner organizations listed below. Application periods vary depending on the partner organization. Please see their website for up-to-date application information.

The Minnesota Department of Employment and Economic Development (DEED) will oversee the Providing Resources & Opportunity & Maximizing Investments in Striving Entrepreneurs (PROMISE) Act approved by the Minnesota State Legislature and signed into law by Gov. Tim Walz.

This program, through a series of statewide partner organizations, will award grants to eligible businesses in communities that have been adversely affected by structural racial discrimination, civil unrest, lack of access to capital, loss of population or an aging population, or lack of regional economic diversification. A total of $94. 3 million will be awarded as grants in multiple rounds.

Grant funds 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. Technical assistance will be available to assist with submitting an application. Eligible businesses will: Have primary business operations located in the State of Minnesota Be located in an eligible service area.

See more info under the Service Area tab.

Be registered with the Minnesota Secretary of State, if required by Minnesota State Law Sole proprietors operating their business under their own name do not need to be registered with the Secretary of State Have gross annual revenue of $750,000 or less based on the prior taxable year Maintain ongoing operations as of the date of application If the business location is the taxpayer's residence, the business must have claimed and been allowed the deduction for home office expenses in the prior taxable year.

Businesses will be awarded grant funds based on gross annual revenue in the prior taxable year.

Businesses with gross annual revenue in the prior year of $100,000 or less can receive up to $10,000 Businesses with gross annual revenue in the prior year of more than $100,000 but no more than $350,000 can receive up to $25,000 Businesses with gross annual revenue in the prior year of more than $350,000 but no more than $750,000 can receive up to $50,000 For the purposes of this grant program, business means both for-profit businesses and nonprofit organizations that earn revenue in ways similar to businesses.

To be eligible, non-profits must meet at least one of the two definitions of an eligible non-profit: Definition A: A nonprofit organization that earns 30% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses.

Definition B: A nonprofit organization that earns 10% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses AND demonstrate they maintain ongoing customer-facing operations at a permanent physical location at which some of those sales take place. Neighborhood Development Center Areas of North Minneapolis, South Minneapolis, St.

Paul, and communities throughout the 7-county metro area. Specific geographic boundaries can be found on the MN Promise Act website . Service area covers the 7-county region of Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St.

Louis, and all or parts of the five Native Nations of Bois Forte Band of Chippewa, Fond du Lac Band of Lake Superior Chippewa, Grand Portage Band of Lake Superior Chippewa, Leech Lake Band of Ojibwe (District I), and Mille Lacs Band of Ojibwe (District II).

Northwest Minnesota Foundation Service area covers 12 Counties: Beltrami, Hubbard, Norman, Polk, Marshall, Kittson, Clearwater, Lake of the Woods, Roseau, Pennington, Red Lake and Mahnomen Counties Service area covers Central Minnesota, and includes businesses with physical locations in Benton, Cass, Chisago, Crow Wing, Isanti, Kanabec, Mille Lacs, Morrison, Pine, Sherburne, Stearns, Todd, Wadena and Wright counties and the sovereign Native nations of the Leech Lake and Mille Lacs Bands of Ojibwe.

Visit the Initiative Foundation website and click on "Grants" at the top of the page. For questions, reach out to relief_funds@ifound. org .

West Central Initiative Foundation Service area covers Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, and Wilkin County.

Southern Minnesota Initiative Foundation Service area covers the 20-county region of Blue Earth, Brown, Dodge, Faribault, Fillmore, Freeborn, Houston, Goodhue, Martin, Le Sueur, Nicollet, Mower, Rice, Olmsted, Steele, Sibley, Waseca, Wabasha, Winona and Watonwan counties, as well as one Native nation (Prairie Island Indian Community). Melissa Langer, melissal@smifoundation. org Brian Conzemius, brianc@smifoundation.

org Southwest Minnesota Initiative Foundation Service area covers Big Stone, Chippewa, Cottonwood, Jackson, Kandiyohi, Lac qui Parle, Lincoln, Lyon, McLeod, Meeker, Murray, Nobles, Pipestone, Redwood, Renville, Rock, Swift, and Yellow Medicine counties; Upper Sioux Community, Lower Sioux Indian Community. programs@swifoundation. org View the grant recipient list .

Please review the list of Frequently Asked Questions section before contacting us. Please note that, due to a high volume of inquiries, we may not be able to respond to individual questions promptly. We will read all questions and will post answers on the FAQ as soon as possible.

Check the FAQ regularly for updates. If you still have a question, email PromiseGrants. DEED@state.

mn. us. Q: When will the application open?

A: Application periods will vary depending on the partner organization. All of the partners have closed their initial application round but will have their second round opening in the coming months. Q: How will eligible businesses apply?

A: Each partner organization will host an online portal to submit an application. Q: I don't have 2021 taxes, am I still eligible? A: Yes, you may still be eligible even if you don’t have 2021 taxes.

Please review the rest of the eligibility criteria to confirm. Q: I started my business in 2022. Am I eligible?

A: Yes. A business established in 2022 or later is may still be eligible. Please review the rest of the eligibility criteria to confirm.

Q: Can a business owner with multiple LLC's apply for more than one grant? A: Only one grant per business or individual. Ownership stake needs to be below 20% to qualify if that owner has received a grant from another business.

Q: How is the revenue limit verified? A: Meeting the requirements the sub-$750k threshold is based on a review of your prior taxable year return. Q: Can I reapply in the next round if I don't get selected in the first application window?

A: Yes, applicants who are not selected for a grant can apply in future rounds. Q: Why is gross revenue used for this program instead of net income? A: Gross revenue is mandated by the State legislation.

Q: Which tax year will be used to decide the amount of the grant? A: The legislation requires that the "prior year" be used to determine grant amount. The prior year is defined as the most recent completed tax year at the time of application.

For example: If your business is required to submit tax returns by October 15, 2025 and you apply for a promise grant in January 2025 the prior year will be 2023. Q: Which tax year will be used to decide the amount of the grant? A: The legislation requires that the "prior year" be used to determine grant amount.

We are considering 2022 taxes to be the prior year for the first application window. Q: Can someone help me submit an application for this grant? A: Yes!

Our partner organizations are all providing help with submitting an application free of charge. Other individuals, such as your accountant, can help you fill out an application but you as the business owner must submit it. Q: What types of businesses are eligible?

A: Almost all business types that meet the program requirements are eligible. Q: What if my business is located very close to the geographic boundary but not technically within it? A: Unfortunately, your business does not qualify.

We may adjust neighborhoods in the future application window. Q: Are new businesses eligible? A: Yes, businesses must have at least one year of completed tax returns to apply.

Q: How long does a business need to be located in an eligible neighborhood to qualify? A: A business must be located in the neighborhood currently and throughout the application process. No other specific length is required.

Q: Do nonprofits qualify for this grant? A: Yes, if they operate like a business. To be eligible, non-profits must meet at least one of the two definitions of an eligible non-profit: Definition A: A nonprofit organization that earns 30% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses.

Definition B: A nonprofit organization that earns 10% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses AND demonstrate they maintain ongoing customer-facing operations at a permanent physical location at which some of those sales take place. Q: Are Uber/Lyft drivers eligible? Independent contractors?

Food trucks? A: Independent contractors such as Uber/Lyft drivers would be considered sole proprietors and be eligible for the grant. Location will be based on their physical business location used for tax purposes.

If the business location is the taxpayer's residence the applicant must have claimed and been allowed the deduction for the home office expense tax deduction under section 280A(c)(1) of the Internal Revenue Code, in the prior taxable year. Q: Are HOA's (Homeowners Associations) eligible for this grant? A.

No. HOA's are not eligible since they do not operate like a business. Q: Can I purchase a property with this grant? Or use it for a down payment?

A: No, this grant is only for working capital and equipment as outlined in the legislation. Q: Can I use the grant funds to pay someone who helped me apply for this grant opportunity? A: No, fundraising does not qualify as an eligible use.

If you receive a grant from this program, it can only 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. Please note that our partner organizations can provide help submitting an application free of charge.

Please reach out to our partners under the "Partner" tab if you need assistance completing your application. Required Documents to Submit Q: Can we submit older tax returns to help show financial hardship over time? A: No, you are limited to a two-year window to show financial hardship.

We will not accept older tax returns (pre-2021) to show financial hardship. Q: What documents should non-profits submit to show revenue/income? A: Tax returns or Form 990.

Q: What year should be submitted for the “prior taxable year”? A: This should be the most recently completed tax year which depends on when you apply. It may be either your 2023 or 2024 tax return.

Check with the appropriate partner organization to determine this based on their application window. Q: Is this grant taxable? A: Yes, this grant is classified as taxable income (misc.

income, form 1099) Q: I received PPP funds but not state funds, will this play a factor in this program? A: No, whether or not you received PPP funds will not be considered in this program. Only participation in one of the four state programs listed in the legislation will be considered.

Q: Is my business eligible if I have been convicted of a criminal offense related to a state grant agreement? A: No, you are not eligible for a grant if you have ever been convicted of a criminal offense relating to a state grant agreement. Q: Can the grant funds be used for loan payments?

A: Yes, as long as the loan payments go towards an asset owned and utilized by the business receiving the grant. Q: Can I use an international bank account to receive my grant funds? A: In order to ensure compliance with United States federal banking and tax laws, international bank accounts are not eligible to receive Promise Act Grant funds.

To receive funds from this program, the bank account must be with a bank based in the United States.