MN PROMISE Act Loan Fund
The Providing Resources & Opportunity & Maximizing Investments in Striving Entrepreneurs (PROMISE) Act Loan Program is a new, state-funded program that will provide loans to disadvantaged small businesses located in certain areas of Minneapolis and St. Paul. Click the button to begin the MN PROMISE Act Loan Pre-Application to check your business’s eligibility for any MN PROMISE Act Loan Funding. (Eligibility does not guarantee MN PROMISE Act Loan funding).
About the Program
Metropolitan Economic Development Association (MEDA) will administer the MN PROMISE Act Loan program for the Twin Cities, alongside community partner organizations.
How These Programs Work
The State of Minnesota has allocated $24,000,000 for PROMISE Loans in the Twin Cities over two years. These funds will move from the State of Minnesota, through MEDA, and into the community. This funding is to be used for Capital Improvements such as buying buildings for your business and/or building renovation and expansion.
Eligibility Requirements*
(*Eligibility does not guarantee MN PROMISE Act Loan funding.)
Have primary business operations located
in the state of Minnesota and must registered with the Secretary of State
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.
Less than $1,000,000 in revenue per year in 2021 and 2022
To receive a loan, a business must be located in one of these areas:
(Eligibility does not guarantee MN PROMISE Act Loan funding)
West Broadway, Camden, or other North Minneapolis neighborhoods
Lake Street, 38th & Chicago, Franklin, Nicollet, & Riverside corridors of South Minneapolis
University Avenue, Midway, Eastside, or other St. Paul neighborhoods
Promise Loan Program Quick Facts
How Can the Funds Be Used?
Loans can ONLY be used for Capital Improvements such as buying buildings for your business and/or building renovation and expansion.
What Are the Terms of PROMISE Loans & How Much Loan Funding Can a Business Receive?
Loans will be in amounts of a minimum of $50,000 for a term of no more than 10 years and will charge an interest rate of no more than 3%. MEDA will establish a revolving loan fund for PROMISE Loans so that all funds paid back can be lent out again to other eligible businesses.
What is the process of the MN PROMISE ACT Loan Application?
Pre-apply to see if your business is eligible for MN PROMISE ACT Loan Funding. (Eligibility does not guarantee MN PROMISE Act Loan funding).
If your business is eligible, you will receive an email with the MN PROMISE Act email with a MN PROMISE Loan Application Form, and a link to upload all the other necessary documents to begin the Loan Application.
Once you have uploaded all the necessary documents, and only until then, the underwriting will begin. The process will take a minimum of 4 weeks to complete.
