Grant Opportunity
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. Over $86,000,000 will be awarded across the state as grants in multiple rounds. West Central Initiative will distribute over $1.15 million in PROMISE Act Grants to businesses and nonprofits in west central Minnesota in State Fiscal Year 2026.
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.
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Grant Information
Important Dates
We received a large volume of applicants for the 2026 grant round. We anticipate completing the reviews and funding determinations for the 2026 grant round by February 27, 2026. All applicants will be notified if they will receive funding or not.
The application is closed.
Eligibility
The applicant can be a business, a developer seeking funding to complete an eligible project, or a nonprofit organization. Local units of government are not eligible for the program. Other eligibility requirements and loan priorities:
- 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.
- The business entity must have existed and filed taxes in the year prior to the current year (taxes filed in 2024 if applying in 2025).
- The business cannot have had gross annual revenue of more than $750,000 in the previous tax year (2024 if applying in 2025).
- Priority will be given to businesses that existed in 2021 and those businesses that have a physical location.
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.
Changes to the Promise Grant Program
There were several core changes to the program:
- The tax years that are evaluated for this round are 2023 and 2024.
- The business must have $750,000 or less in annual gross revenue based on 2024 tax returns.
- The business must have at least $10,000 in annual gross revenue based on 2024 tax returns.
- Businesses that were in operation in 2021, as evidenced by 2021 business tax return, are given priority for this second round.
- The business must have a physical location. If the business is located at 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.
To be eligible, non-profits must meet at least one of the two definitions of an eligible nonprofit:
Definition A: A nonprofit organization that earns 30% or more of its revenue on an ongoing basis through 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 its revenue on an ongoing basis through non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses AND demonstrates it maintains ongoing customer-facing operations at a permanent physical location at which some of those sales take place.
Definition of “business-like” revenue that counts towards meeting the percentage revenue threshold:
- Program service revenue
- Membership dues
- Unrelated or other business income
Revenue that does not count towards meeting the percentage revenue threshold:
- Contribution, gifts, and grants
- Fundraising events
- Asset sales
- Investment income
Frequently Asked Questions
Q: When will the application open?
A: West Central Initiative’s PROMISE Act Grant application is currently closed.
Q: I received a 2024 PROMISE Act Grant, am I eligible for another year?
A: No, if you received a grant in 2024 you are not eligible to receive another PROMISE Act Grant, even if you are applying for a different business.
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 2023 taxes. Am I still eligible?
A: Yes, if you don’t have 2023 taxes, you may submit just your 2024 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: Email Greg Wagner 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 email Greg Wagner or call (218) 998-1621 to request translation or interpretation services.
Q: Can a business owner with multiple LLCs apply for more than one grant?
A: Yes, each separate business can submit an application. However, 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: For this round, the $750,000 annual gross revenue threshold is checked based on the most recently completed tax year, so 2024 taxes.
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: I applied last year and didn’t get selected, or I received a notification that I was ineligible. Can I apply for this round?
A; Yes, applicants who were not selected for a grant can apply again. Some of the program rules have changed, so even those who received notice that they were “ineligible” last year should consider submitting a new application.
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 the grant amount. We are considering 2024 taxes to be the prior year for this application window.
Q: I received financial support from the State of Minnesota in the form of emergency loans and/or grants between 2022-2023, am I eligible to apply?
A: Yes, you can still apply, businesses that received more than $10,000 in state funds are eligible, but receive a lower priority ranking. The application review process will confirm amounts received through a database if you are unsure of the amount or program.
Q: What types of businesses are eligible?
A: Almost 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 can apply as long as they filed a 2024 business tax return. Annual gross revenue must be under $750,000. However, your application won’t be as competitive as those businesses that filed in 2023 and 2024.
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. See “Nonprofit Eligibility Expanded” under Changes to the Promise Act Program section for a definition of a business as it pertains to a nonprofit. If the nonprofit only files 990-N (e-Postcard), it is not eligible for consideration as the program requires the review of filed tax returns to determine financial criteria.
Q: Are Uber/Lyft drivers eligible? Independent contractors? Food trucks?
A: The business must have a physical location to be eligible for this round per the changes implemented by the legislation. If the physical location is the taxpayer’s residence, the Schedule C or F must include the home-office expense deduction, or an IRS Form 8829 filed with the tax returns.
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: What changes have been made to the application?
A: WCI is using a new software program that will offer a more seamless user interface, with the ability to save your application and complete it later. We do not accept paper copies of the application or required additional documents.
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).
- 2023 business tax return (if available).
- 2024 business tax return.
- 2021 Business tax return (if filed and applicable)
- FOR HOME-BASED BUSINESS ONLY, the following need to be included with your tax return upload:
- If a Non-farm business: Schedule C (Line 30 will be evaluated)
- If a Farming business: Schedule F (Line 32 will be evaluated)
- Or if applicable for either non-farm or farming home based business: IRS Form 8829
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.
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 2022 taxes acceptable?
A: No, this grant round only evaluates the financial comparisons between 2023 and 2024.
Q: Is this grant taxable?
A: Yes, this grant is classified as taxable income and awardees will receive a 1099 Tax Form for the 2026 tax year.
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.
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