- Sole proprietors operating their business under their own name do not need to be registered with the Secretary of State
Businesses will be awarded grant funds based on gross annual revenue in the prior 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.
Partners/Service Area
| Region | Partner Organization | Service Area | Contact Information |
|---|---|---|---|
| Metro | Neighborhood Development Center | Areas of North Minneapolis, South Minneapolis, and St. Paul. Specific geographic boundaries can be found on the MN Promise Act website. | promiseact@ndc-mn.org 651-379-8102 |
| Northeast | Northland Foundation | 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). | grants@northlandfdn.org |
| Northwest | 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 | Sarah Linda sarahl@nwmf.org 218-558-5327 |
| Central | Initiative Foundation | 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. | Haakon Lehn hlehn@ifound.org 320-632-9255 |
| West Central | West Central Initiative Foundation | Service area covers Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, and Wilkin County. | Greg Wagner greg@wcif.org 218-998-1621 |
| Southeast | 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 507-455-3215 |
| Southwest | 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 320-583-5025 |
Contact
FAQ
Application
Q: When will the application open?
A: Application periods will vary depending on the partner organization. All of the partners will open their application by late Spring 2024.
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, if you don't have 2021 taxes you may submit your 2022 taxes.General Rules
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: The $750k threshold is checked in your first year of tax returns submitted. 2021 if you have it otherwise 2022 will be used.
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 will be eligible in the next round.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. 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.
Eligibility
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 and if so, what tax year is used for eligibility?
A: Yes, new businesses are eligible. They should submit 2022 taxes to be used for eligibility. Revenue must still be under $750k.
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?
- 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.
Uses
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.
Miscellaneous
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.
