MN PROMISE Act Loan Fund
The PROMISE Act (Providing Resources & Opportunity while Maximizing Investments in Striving Entrepreneurs) Loan Program is a state-funded program that provides loans to small businesses located in certain disadvantaged areas of Minneapolis and St. Paul. Click below to begin the MN PROMISE Act Loan Pre-Application to check your business’s eligibility for financing. (Eligibility does not guarantee MN PROMISE Act Loan funding).
About the Program
MN PROMISE Act loans are available to businesses, developers, and non-profit organizations in designated communities for commercial real estate purchases, renovation and/or expansion. Loans up to $1.5 million are available for applicants that meet eligibility requirements. MEDA administers the MN PROMISE Act Loan program for the Twin Cities, alongside community partner organizations.
How The Program Works
The State of Minnesota has allocated $24,000,000 for PROMISE Act 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 commercial real estate 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. SEE Map below.
Less than $1,500,000 in gross annual revenue per year based on applicant’s taxes in 2023 and 2024
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
CLICK TO DOWNLOAD MAPS of eligible metro neighborhoods
MN PROMISE Act Loan Program Quick Facts
How Can the Funds Be Used?
Loans can ONLY be used for Capital Improvements such as buying commercial real estate 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 to a maximum of $1.5 million 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.
Underwriting will begin only when all the necessary documents have been submitted. This process, including appraisal and inspection will take approximately 8 weeks to complete.
