Program Eligibility

Frequently Asked Questions

MN PROMISE Act Overview

  • 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: We strive to communicate clearly to applicants, partners, and the community. 

    • Stewardship: We are cognizant that we are managing state dollars and do our best to be good stewards of these funds, including building an application process that is mindful of security and guards against fraud. 

    • Equitable Distribution: We have made many efforts to make this process as accessible to the communities it is intended for, including providing 1:1 application support, providing the application and support in several languages, offering multiple grant rounds, and leaning on feedback insight from community partners. 

    • Empower & Equip: We are giving businesses the agency to grow and scale their business. We provide resources that will walk applicants though everything they need to apply for a Minneapolis - Saint Paul PROMISE Act grant.

    • Disadvantaged Communities: The communities that are taken into consideration when drawing boundaries are small businesses who 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

    • Prevail: By spreading these funds to local businesses, it is fueling growth and opportunity in targeted communities. We aim to empower entrepreneurs and foster economic growth for local businesses.

  • 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 eligible businesses that meet the geographic and revenue requirements. 

    Due to this reality, we encourage you to be ready to apply. Please go to the Application Preparation page to gather your information to be prepared to apply. 

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

  • Please visit our Grant Preference page to learn which businesses are prioritized for the MN PROMISE Act grant. 

  • First round of the grant application opened on June 3rd, 2024 and closed on June 30th, 2024. Round two dates have not been finalized yet. As of now, we expect to offer a total of four rounds.  Please sign up for the PROMISE Act newsletter to receive updates to your email. 

  • No. 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. 

    • 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 

  • Financial hardship is defined as a 10% decline in gross revenue OR a decrease in net income, as demonstrated by the two years of submitted tax documents. Applicants can submit either 2021-2022 OR 2022-2023 tax returns. 

Eligibility

  • 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. P.O. Boxes will not be accepted as an eligible address.

    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. If you are not eligible, we encourage you to advocate for yourself with your elected representatives. We have provided a script and instructions on how to do this here.

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

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

    • 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 

    • 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. 

    • 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.

    • A specific amount of funding will be reserved for businesses in each geography that earned less than $100,000 in revenue.

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

    • Business located outside of the neighborhoods identified by the legislature 

    • Not been in business for 2 years 

    • Over the annual revenue in the first year of submitted tax returns. A business must make $750,000 or less to qualify.

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

    • A business is unable to provide two years (2021-2022 or 2022-2023) of submitted tax returns

  • 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 given preference. 

  • 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. 

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

    However, your grant award is determined by your revenue. 

  • The gross revenue reported must match what is in 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. 

  • Yes, non-profits qualify for the PROMISE Act Grants Program. Nonprofit-Specific Guidelines: In addition to meeting all the general requirements, to qualify for this grant, nonprofit organizations must earn at least 10% of their total annual revenue through the sale of goods or services.  

  • 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 eligible program geography. 

  • Yes, LLCs with S-corporation are eligible. 

  • 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.

  • 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. Applicants are required to disclose all owners that own at least 20% of their business. If you own 20% or more of multiple businesses, only ONE of those businesses is eligible. 

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

  • No, downtown Minneapolis, Brooklyn Center, and any other businesses located outside the specified program geography 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. 

  • To qualify as “located in” an eligible community, the business must have a physical location within that community. If the business does not have a fixed location outside the owner’s home, then the business “location” would be the primary owner’s home address. Under Minnesota law, a PO Box does not count as a physical location for a business. [CLICK HERE FOR DETAILS]

    In Minnesota, if a business must be registered with the Secretary of State (such as an LLC or S-Corp), the law requires a physical address within the state as the registered office. A PO Box alone is not acceptable as a registered office address.

    Note that not every business needs to be registered. For example, sole proprietors using their legal name do not need to register. But for the MN PROMISE Act Grant program, “location” means a real, physical place—not a PO Box.

    Also, for fraud prevention, PO Boxes are also not accepted.

Application Process

  • The grant application process will be offered in four separate rounds. Round one closed on June 30th, 2024. Round two dates have not been finalized yet. The process includes the following steps: 

    • Pre-application to determine eligibility 

    • Identity verification (you will need a valid, current State or Federal-issued ID such as a driver’s license or passport) 

    • Grant application 

  • This application will be focused on providing proof of eligibility and determining prioritization. Info sessions and ‘Get Ready’ workshops will be offered leading up to the grant portal opening. In the meantime, please review the Application Preparation page to familiarize yourself with the information you will need to know to apply.

  • More information will be provided during each specific round.

  • No, you do not need to have a social security number to apply, however, if you do not have a TIN or EIN (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: 

    • Most recent year of 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. 

  • Read our privacy policy here: MN PROMISE Act Privacy Policy

  • This process is still being finalized. 

    • NDC is partnering with several community organizations that will be providing application assistance, as well as reviewing grant applications. 

      • Grant applications will have an initial review by the internal NDC grant team  

      • Applications will then be assigned to a Community Reviewer, who will verify that the application has correct and clear documentation to approve the grant. The reviewer will sign-off that the application meets requirements

      • The application is then given a final review and award determination by the NDC grant team, who will then work with MN DEED to process awards. 

      There will be 10 Community Review “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 

  • Yes! Our partner organizations are all providing help with submitting an application free of charge. Other individuals or organizations can also help you fill out an application but you as the business owner must submit it. Please note, no one affiliated with the MN PROMISE Act or any official community partners charge a fee for application support. If you have any concerns about someone charging you for assistance, please contact our team to investigate. 

Eligible Use

  • 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. 

  • 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. 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. 

  • 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) 

  • 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. 

  • No. Grant funds are limited to expenses such as payroll, rent / mortgage, utilities, equipment or other expenditures that occur in the regular course of business. 

  • No, fundraising does not qualify as an eligible use. Our partner organizations can provide help submitting an application free of charge. 

Additional

  • 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. 

  • 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 criteria. 

  • Yes, the grant is taxable income. 

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

  • 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.

  • 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. Please visit our Small Business Resources page to get more information on DEED and our community partners.  

    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! Please visit our self-advocacy page to learn more.