Frequently Asked Questions

  • The grant application is currently being built out with the updated opening application opening date this spring. Winter has been dedicated to building and testing the online application system and our community support team. We anticipate a full program launch in the Spring of 2024. Please sign up for the PROMISE Act newsletter to receive updates to your email on when the application will become available.

  • We are a transparent steward of equitable distribution of resources that will empower and equip entrepreneurs in our most disadvantaged communities and enable them to prevail.

    • Transparency

    • Stewardship

    • Equitable Distribution

    • Empower & Equip

    • Disadvantaged Communities

    • Prevail

  • We are so grateful for this incredible investment in small businesses through the PROMISE Act Bill which was ushered in by Senator Bobby Joe Champion and Representative Hodan Hassan.

    We also know, based on the data*, that only about 25% of eligible businesses will receive a grant. $283 million would be required to reach all 8,688 businesses eligible businesses that meet the geographic and revenue requirements.

    Due to this reality, we encourage you to be ready to apply. Please use the Application Preparation Worksheet on the Get Ready Page to begin gathering your information so you are ready to apply.

    *Data Source: All data is sourced from Data Axle Reference Solutions database of U.S. Businesses as of March 13th, 2024.

  • Start-ups are not eligible for this funding. This program is for businesses that have been operating, and paying taxes on earnings, for at least two years.

    One of the core eligibility requirements is that applicants must be an active, tax paying, Minnesota business for at least two years. New businesses, or startups, are not eligible for the PROMISE Act program. Most businesses started after 2022 will probably not be eligible. You can find the latest information on the MN PROMISE Act on our website www.mnpromiseact.org .

    There are opportunities for other kinds of funding through small business programs at organizations like NDC. We would encourage you to explore these websites and connect with organizations that can support your needs.

    NDC | Neighborhood Development Center (ndc-mn.org)

    Starting a Business / Minnesota Department of Employment and Economic Development (mn.gov)

  • Please utilize the MN PROMISE Act Eligibility Map. The map highlights different eligible areas. To check if your business is in an eligible area, click on the magnifying glass and enter your business address. A pin will pop up. If your pin is in a highlighted area, your business is in an eligible area.

    If you have difficulty using the map, please reach out to us.

  • There are no exceptions to eligible areas for PROMISE Act. The eligible areas on the website are based on the language in the law.

  • You, as a constituent, can advocate for yourself and your business by contacting your State Representative and State Senator to let them know you are not eligible for a MN PROMISE Act Grant. They need to hear from YOU as their constituent.

    Check out our instructions and steps for self advocacy here.

  • To be eligible for a grant, a business or non-profit must meeting following requirements:

    • Be an active business located in MN with at least two-years of state and federal tax returns

    • Be located in an eligible neighborhood: MN PROMISE Act Eligibility Map 

    • Have a gross annual revenue up to $750,000.00

      • based on 2021 taxes if submitting 2021 and 2022 taxes

      • based on 2022 taxes if submitting 2022 and 2023 taxes

    • Your business has suffered due to the following:

      • Structural racial discrimination

      • Civil unrest

      • A loss of population

      • An aging population

      • A lack of regional economic diversification

    The map highlights different eligible areas. To check if your business is in an eligible area, click on the magnifying glass and enter your business address. A pin will pop up. If your pin is in a highlighted area, your business is in an eligible area.

  • A business may not qualify for the grant or loan due to:

    • Business located outside of the neighborhoods identified by the legislature

    • Not been in business for 2 years

    • Too much annual revenue in one of the 2 tax years. $750,000 or less for grants, and $1,000,000 or less for loans

    • Has been convicted of criminal offense related to other state grants

  • Prioritization A: Businesses who received $10,000 or less in assistance total from the following State programs:

    • Minnesota Small Business Emergency Loan Program

    • Minnesota Small Business Relief Grants

    • Minnesota County Relief Grants to Local Businesses

    • Minnesota Movie Theater and Convention Center Grant

    Prioritization B: The applicant demonstrates they meet one or more the definitions for financial hardship as follows:

    • The applicant can demonstrate their business experienced 10% decline in gross revenue for the most recent completed tax year compared to the previous tax year.

    • The applicant can demonstrate their business experienced a decrease in net income of more than 0% for the most recent completed tax year compared to the previous tax year.

    Priority #1 goes to businesses with both A and B

    Priority #2 goes to businesses with either A or B

    The program was originally created to help businesses in the aftermath of the civil unrest and COVID-19. This program is meant to help you create and sustain that change. We want to see you thrive.

  • Only one business can receive a grant. If you have multiple businesses and/or multiple locations, you must decide which business you want to apply under.

    Also, multiple owners cannot apply for a grant, only one owner under the one business can apply.

  • No, you do not have to suffer from a loss in revenue to qualify, however if you experienced a loss in revenue your application will be prioritized.

  • You must have a current business in the community as per the legislation. If by the time you are going to apply for the PROMISE Act grant and have already moved to your business to an eligible location, you should have your lease and new address on your business documents on hand.

  • The type of business does not affect the grant eligibility. The program was originally created to help businesses in the aftermath of the civil unrest and COVID-19. This program is meant to help you create and sustain that change.

  • No, business location determines eligibility on the date you apply for a grant. Make sure your business documentation, like Secretary of State registration, has been updated with your new business address.

  • There are no legal requirements to report back on your grant*, however, NDC reserves the right to follow-up at certain intervals to help us understand the longer-term impacts of this grant program. Participation is not required.

    *The grant is taxable income and will need to be reported on your taxes.

  • No, there is no minimum income/revenue requirement.

  • Gross revenue reported must match what is on the tax filings submitted. Previous grants need to follow the IRS reporting rules associated with that grant program.

  • Your business relationship with DEED has no bearings on your eligibility.

  • No, downtown Minneapolis and Brooklyn Center do not qualify. Your business must be situated in the following neighborhoods/communities:

    Please refer to the map on the PROMISE Act website. To check if your business is in an eligible area, click on the magnifying glass and enter your business address. A pin will pop up. If your pin is in a highlighted area, your business is in an eligible area.

  • Yes, non-profits qualify for the PROMISE Act Grants Program. Details for non-profits are still being determined in partnership with Propel Nonprofits.

  • Yes, Uber counts as a home-based business, and is eligible to apply. You must still meet the eligible geography and revenue limits.

  • Yes, as long as either your home address or commissary license is in the geography.

  • Yes, LLC with S-corporation are eligible.

  • The grant application is currently being built out with the updated opening application opening date this spring. Winter has been dedicated to building and testing the online application system and our community support team. We anticipate a full program launch in late Spring of 2024. Please sign up for the PROMISE Act newsletter to receive updates to your email on when the application will become available.

  • This application will be focused on providing proof of eligibility and determine prioritization. In Spring 2024, we will be launching ‘Get Ready’ workshops that will provide all the questions you will be required to answer. In the meantime, please review the Get Ready page to start preparing for the application.

    Here is a checklist to prepare as well:

    • These are the documents you will need, and information you must know, about your business when applying for a MN PROMISE Act Grant.

    • Government-Issued Photo ID (showing applicant legal first and last name)

    • Proof of Operating Business Address (legal document, such as a lease or business licensure)

    • Two years of federal and MN state tax return: 2021 and 2022 OR 2022 and 2023

    • MN Secretary of State Business File Number, unless sole proprietor

    • Business Structure (see table below)

    • If a Sole Proprietorship: name of all business partners, who own 20% of more of applying businesses.

    • Tax Identification Number(s)

    • Sole proprietor: SSN or ITIN

    • Registered business: Federal EIN and MN State Tax ID

    • Voided check: If awarded, grant funds can only be sent electronically. You will be required to upload a cancelled check that matches the business name and information on other documents and includes your routing and account numbers. Starter checks will not be accepted.

    • W9 Form , if awarded a grant.

  • Applications will open in Spring 2024, and we estimate approximately 4 weeks from application submission to award decision. PLEASE NOTE: timing subject to change based on volume of applications.

  • If you are awarded a grant you will be required to sign a grant agreement, and provide a voided check, and a W9.

  • No, you must have a bank account from a traditional banking institution. PROMISE Act grant dollars are not NDC’s money. They are State funds, and therefore, taxpayer dollars. In order to mitigate fraud, only bank accounts from traditional banking institutions will be accepted.

    If you run your business through one of those apps, we highly recommend you open a business bank account at a local bank branch or credit union. Thank you for understanding.

  • Yes, you can apply for the grant and loan at the same time. MEDA and NDC are working together to create a seamless transfer of information if you are applying for both a loan and a grant. There is a separate application for each if you meet the qualifications for both. Meda’s loan application is currently open.

  • Yes, as long as you have two years of tax returns for the business (regardless of who owned it), and it meets all other eligibility.

  • No, you do not need to have a social security number in order to apply, however, if you do not have a TIN or EIN number (you are a sole proprietor), you will need to use your Social Security Number.

  • No.

  • Yes, you can use 2021 and 2022 taxes OR 2022 and 2023 taxes.

  • Business address verification will be determined by ONE of the following:

    Tax documentation

    Lease or utility bill

    Business license. For example a license could be a commissary lease or agreement.

  • A platform called Plaid will be used to verify your ID. ID can be either State or Federal. Your ID MUST match before you can proceed to the application. While this is an extra step, please understand we want to avoid any fraud that could take grant dollars away from deserving businesses.

  • WizeHive secure platform, NDC’s T & Cs from DEED, privacy commitment with contractors and CPs

    Background checks on anyone “touching” private data.

  • You are applying once. If you do not receive a grant in the round you apply you will be rolled over to the last (5th) round for a random selection.

  • Yes, however, there will be multiple rounds with a specific amount of dollars. Not all dollars will be spent in round 1. NDC wants an equitable process for business owners to have an opportunity to access the grant application.

  • No, there is no timeline for the use of grants.

  • Grants are intended to support normal business operations; also known as working capital. Funding is intended to cover a range of essential business expenses, including but not limited to:

    • Payroll, rent, mortgage payments, and utilities

    • Purchase new, or upgrade, business equipment

    • Other routine operational expenses

    Grants, however, cannot be used for real estate or physical tenant improvements, such as painting, signage, etc.

  • The application will ask you to categorize by percentage how you will use the grant. It will also request a 1-2 sentence description on how you plan to use the grant. The categories are:

    • Payroll

    • Rent/Mortgage

    • Utilities

    • Equipment

    • Other (similar expenses that occur in the regular course of business)

  • Grant applications will have an initial review by the Grant Review Specialist, who will then assign the applications to the appropriate “community table.” Community table reviewers will verify that the application has correct and clear documentation to approve the grant. The reviewer will sign-off that the application meets requirements, and is returned back to the Grant Review Specialist at NDC for final processing.

    There will be 10 Community Tables for grant reviewing as follows*:

    • 2 Community Review Tables in North Minneapolis

    • 2 Community Review Tables in South Minneapolis

    • 2 Community Review Tables in St. Paul

    • 1 Nonprofit applicant table

    • 1 Spanish language specific table

    • 1 Somali language specific table

    • 1 Hmong language specific table

    Who is at the table?

    • 1 to 2 Community Partner** staff

    • 2 to 4 Community stakeholders

    • 1 NDC staff

    *Community Tables will be led by key Community Partners

    **Community Partners are in process and we will name them upon contract engagement.

  • Yes, the grant is taxable income.

  • No, grant funds do not require a SWIFT account.

  • No, grant funds may not be used towards real estate and/or physical tenant improvements. Loan funds (administered through Meda) may be used for real estate and/or physical tenant improvements.

  • Accessibility and equity is a value around how NDC deploys PROMISE Act grants. We’re currently working with community partners that actively work with Hmong, Latino, and Somali communities. We are also working on having the application accessible in Hmong, Spanish, and Somali. If you see gaps in how services are being provided, or would like to have support in an additional language, please let us know here.

    • Sole proprietor

    • Single Member Limited Liability Corporation (LLC) – filing as a sole proprietor

    • LLC - filing as business corporation

    • Business Corporation (S-Corp or C-Corp)

    • Cooperative

    • Limited Liability Partnership (LLP)

    • Limited Partnership (LP)

    • Nonprofit corporation

  • The only programs that apply for the $10,000 from previous State programs are:

    • Minnesota Small Business Emergency Loan Program

    • Minnesota Small Business Relief Grants

    • Minnesota County Relief Grants to Local Businesses

    • Minnesota Movie Theater and Convention Center Grant

    Federal programs like PPP do NOT factor into grant prioritization.

  • If your business does not qualify, you may be able to find other opportunities or resources to benefit your business. NDC, MEDA and other community partner organizations are dedicated to finding a way to help all businesses.

    DEED also provides this interactive map to find organizations that support small businesses.

    You can also contact your elected State Senator and State Representative and let them know you do not qualify. They need to hear from YOU!