PROMISE Act Grants

West Central Initiative is partnering with the Minnesota Department of Employment and Economic Development (DEED) to distribute PROMISE Act Grants to businesses in west central Minnesota. The PROMISE Act grant program was created by the Minnesota Legislature in 2023 to support small businesses and nonprofits that did not receive state grants during the pandemic.

The Providing Resources and Opportunity and Maximizing Investments in Striving Entrepreneurs (PROMISE) Act, which was approved by the Minnesota State Legislature and signed into law by Governor Tim Walz, will award grants to eligible businesses and nonprofits in specific communities. A total of $86,480,000 will be awarded across the state as grants in multiple rounds. West Central Initiative will distribute $1.15 million in PROMISE Act Grants to businesses and nonprofits in west central Minnesota in State Fiscal Year 2024 and another $1.15 million during State Fiscal Year 2025.

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.

Important Dates

Application Opens: Wednesday, May 1, 2024

Applications Due: Friday, May 31, 2024

Informational Webinars

Join a webinar to learn more. We’ll cover eligibility details, explain the application process, and provide a platform for questions and answers. 

• Friday, May 10 at 10 a.m. |  Register for Zoom Meeting
• Wednesday, May 22 at 3 p.m. |  Register for Zoom Meeting

Eligibility

• Eligibility

  Eligible businesses or nonprofits will:

  • Have primary operations located in Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, or Wilkin Counties or the portion of White Earth Nation in Becker County.
  • Be located in a community that has 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.
  • 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 a gross annual revenue of $750,000 or less based on 2021 or 2022 taxes. 
  • Maintain ongoing operations as of the date of application.
• Award Amount Eligibility

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

  • • Businesses and nonprofits with gross annual revenue in the prior year of $100,000 or less can receive $10,000.

  • • Businesses and nonprofits with gross annual revenue in the prior year of more than $100,000 but no more than $350,000 can receive $25,000.

  • • Businesses and nonprofits with gross annual revenue in the prior year of more than $350,000 but no more than $750,000 can receive $50,000.

Frequently Asked Questions

• Application

  Q: When will the application open?

  A: West Central Initiative’s PROMISE Act Grant application is open and remain open until 11:59 p.m. May 31.

  Q: How can eligible businesses and nonprofits apply?

  A: The online application is available at the bottom of this web page.

  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.

  Q: Is this grant a first come, first served program?

  A: No, you may apply at any time during the application window, and all submissions will be reviewed and scored after the application window closes.

  Q: How long will it take to complete the application?

  A: We expect most applicants will complete the application in 30 to 60 minutes, if they have their documents ready.

  Q: What if I need help completing the application?

  A: Contact Greg Wagner at greg@wcif.org or call (218) 998-1621 to be connected to free technical assistance and support.

  Q: Can I get the application in another language?

  A: Please contact Greg Wagner at greg@wcif.org or call (218) 998-1621 to request translation or interpretation services.

• General Rules

  Q: Can a business owner with multiple LLCs 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 $750,000 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 award 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.

• Eligibility

  Q: What types of businesses are eligible?

  A: All business types that meet the other program requirements are eligible.

  Q: What if my business or nonprofit is located very close to the geographic boundary but not technically within it?

  A: Unfortunately, your business or nonprofit does not qualify for an application with West Central Initiative. Check the State’s  Promise Act website for the program administrator that is serving your area.

  Q: Are new businesses and nonprofits eligible, and, if so, what tax year is used for eligibility?

  A: Yes, new businesses and nonprofits are eligible. They should submit 2022 taxes to be used for eligibility. Revenue must still be under $750,ooo.

  Q: How long does a business or nonprofit need to be located in the region to qualify?

  A: A business or nonprofit must be located in the region 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.

  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.

• Required Documents to Submit

  Q: What documents do I need to have ready?

  A: Please have the following documents ready to submit with your application:

  • Driver’s license or ID card issued by federal, state, or local government.
  • Proof of business address (recent utility bill, invoice, or similar document).
  • 2021 business tax return (if available).
  • 2022 business tax return.

  Q: What format should these documents be in?

  A: The ideal format would be PDF, but uploads will also be accepted in a .jpg or .png format. Word and Excel files will not be accepted. Files with symbols in the file name can not be submitted.

  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: Are 2023 taxes acceptable?

  A: Not during the first application window; you will be able to apply in the second application window, which will be in 2025.

• 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: If I’m eligible, am I guaranteed a grant?

  A: No. We expect this to be a highly competitive program, with most, if not all, grants going to businesses that meet the highest priority

  Q: What businesses and nonprofits are considered the highest priority?

  A: Businesses and nonprofits that received $10,000 or less in pandemic relief grants or loans from the state, and can show a decrease in gross revenue or in net income from 2021 to 2022 on their tax returns.

  Q: Will other businesses and nonprofits get priority?

  A: Businesses and nonprofits that report only one of these situations—$10,000 or less in relief grants or a decrease in revenue or income from 2021 to 2022—may be considered. Additional consideration may be given to businesses and nonprofits that meet any of the following criteria: Majority owners who identify as BIPOC, women, veterans, or having a disability, or can provide a plan for using the grant and financial projections that support continued operations.

  Q: Our fiscal year isn’t the calendar year. What tax returns do you need?

  A: The two returns that have end dates in 2021 and 2022. For example, an organization with a fiscal year of July 1 – June 30 should submit taxes from July 1, 2020, to June 30, 2021, and from July 1, 2021, to June 30, 2022.

  Q: What if I don’t have an EIN or Minnesota Tax ID?

  A: Provide your Social Security number. We realize many sole proprietorships and single-member LLCs elect to use their Social Security numbers. If you do not have a Minnesota Tax ID, leave that question blank.

  Q: If I receive a grant, what can I use the money for?

  A: All regular current or past-due expenses, such as working capital, payroll, rent or mortgage, utilities, equipment, inventory, and more.

  Q: Are grant recipients required to provide matching funds?

  A: No, matching funds are not required.

Application

Tennessen Warning Notice: We are requesting data from you to determine if you are eligible for a grant under the Providing Resources and Opportunity and Maximizing Investments in Striving Entrepreneurs (“PROMISE”) Act through the Minnesota Department of Employment and Economic Development (“DEED”) and its partners. 

You are not required to provide the requested information, but failure to do so will may result in the denial of your application for this grant program. The data that you provide will be shared with DEED’s partner organizations who are authorized to provide grants to businesses under the PROMISE Act grant program. The data may also be shared with other government entities or individuals who have a legal right to this data, including, but not limited to, the Office of the Legislative Auditor, the State Auditor, or as otherwise required or permitted by state or federal law or court order. 

Data Privacy Acknowledgement: Upon completion of the evaluation process, data in your response will be public, with the exception of trade secret data as defined and classified in Minn. Stat. § 13.37. For more information about data classification relating to grants, please refer to Minn. Stat. § 13.599.

By completing and submitting this application, you affirm the following: 

1. I have read and understood the information provided above, and I agree to supply DEED and their partners with the information requested.  

2. I understand that the information may be used as described above in accordance with the Minnesota Government Data Practices Act. 

3. I affirm that, as an officer or authorized agent of the business, I have the authority to submit this application on behalf of the business, and the information submitted is correct and accurate to the best of my knowledge.  

Click the button below to start your PROMISE Act Grant application.

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