SIF: Promise Act Grant

Overview

_NOTE: Applications for the PROMISE Act Grant program are currently closed. Please note, as of April 9, 2025, the Minnesota legislature is currently considering changes to the requirements of this program. We anticipate opening the second round of applications the summer of 2025_

Promise Act Grant

Southwest Initiative Foundation (SWIF) will administer the PROMISE Act Grant program for small businesses in southwest Minnesota located within its service area, which includes 18 counties and two Native nations. Funding and eligibility guidelines for this competitive grant program were established in law during the 2023 Minnesota legislative session.

Competitive grants range between $10,000 to $50,000 from the Minnesota Department of Employment and Economic Development (DEED) to organizations that have been adversely affected by lack of access to capital, loss of population or an aging population, structural racial discrimination, civil unrest, and/or lack of regional economic diversification. The most competitive applicants have experienced economic hardship and did not receive significant COVID-19 relief funding of more than $10,000 from the State of Minnesota.

Funding

Grant award amounts are determined based on the business’ specifically requested tax year gross revenue.

*  Gross Revenue - $100,000 or below, therefore, Award Amount - $10,000
*  Gross Revenue - $101,000 to $350,000, therefore, Award Amount - $25,000
*  Gross Revenue - $351,000 to $750,000, therefore, Award Amount - $50,000

Eligibility

_You can learn more about this opportunity by visiting the funder's website._

* Business must have a primary business operating within the SWIF’s service area which includes the counties of Big Stone, Chippewa, Cottonwood, Jackson, Kandiyohi, Lac qui Parle, Lincoln, Lyon, McLeod, Meeker, Murray, Nobles, Pipestone, Redwood, Renville, Rock, Swift and Yellow Medicine; and Pezihutazizi Oyate (Upper Sioux Community) and Cansayapi Oyate (Lower Sioux Indian Community).
* Home based businesses are eligible to apply, so long as at least 50% of the employees are based in Minnesota.
* Sole proprietors are also eligible to apply but will be required to demonstrate business income sources separately from other sources of income.
* Businesses not operating within the SWIF region should review the DEED website to determine which organization to apply through, as this is a statewide program with different organizations dministering in various regions.
* Business owner(s) and any directors or officers have not been convicted of a crime related to any state law.
* Business is in good standing with the Department of Revenue.
* Businesses with $750,00 or less in gross revenue (based on specified taxes).
* Have a minimum of $10,000 in revenue in the specified year.
* Businesses must 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 Minnesota Secretary of State.
* Nonprofits operating like a for-profit business, earning 30% or more of revenue on an ongoing basis through non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses.
* Definition of “business-like” revenue that counts toward meeting the 30% threshold includes: program service revenue, membership dues, unrelated or other business income. Revenue that does not count towards meeting the 30% revenue includes: contributions, gifts or grants; fundraising events; asset sales; investment income.
* Business is operating as of the application date and can produce documents of ongoing operations.
* This can include recent invoices, payroll records, current lease or other business activity.
* Use of Funds:
* 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.
* Please note awardees may be required to provide documentation validating the use of grant funds at a later date.