NMF: Promise Act Grant

From The Northwest Minnesota Foundation

The Northwest Minnesota Foundation invests resources, facilitates collaboration and promotes philanthropy to make the region a better place to live and work.

Type of Support

Overview

The PROMISE Act grant program offers financial support to businesses and nonprofits in Northwest Minnesota, aiming for equitable economic recovery. Funded by the Minnesota Legislature with a $2.3 million budget, it targets small, rural, and minority-owned businesses facing high barriers to accessing capital. Grants up to $50,000 will cover working capital needs such as payroll, rent, mortgage, utility bills, and equipment expenses. The award process is competitive and not first-come, first-served, with expectations of high demand and a randomized selection method for awardees. Award amounts vary based on the business's gross revenue, with specific caps based on financial thresholds. Applicants also have access to free technical support during the application process.

Eligibility

Organization's Location
USA
Program Location
MN (Beltrami County, Clearwater County, Hubbard County, Kittson County, Lake of the Woods County, Mahnomen County, Marshall County, Norman County, Pennington County, Polk County, Red Lake County, Roseau County)
Organization Type
Small businesses
501(c)(3) nonprofits
Organization Budget And Years
Organization's annual budget is between 10k and 750k
Other
  • Located within the Northwest Minnesota Foundation service area, which includes Red Lake Nation, White Earth Nation, and 12 counties: Beltrami, Clearwater, Hubbard, Kittson, Lake of the Woods, Mahnomen, Marshall, Norman, Pennington, Polk, Red Lake, and Roseau
  • Primary business operation must be located within this service area
  • Must be a for-profit business or a nonprofit organization that earns 30% or more of their revenue from non-tax-deductible sales or dues in a fee-for-service model
  • Primary business operations located in the state of Minnesota
  • Located in a community adversely affected by structural racial discrimination, civil unrest, lack of access to capital, loss of population or an aging population, or lack of regional economic diversification
  • Gross annual revenue of $750,000 or less based on 2022 taxes
  • Minimum of $10,000 in revenue based on 2022 taxes
  • Business maintains ongoing operations in 2024 as of the application date
up to 50k

Submission

Review Criteria

Eligibility for funding preferences will be determined based on the following criteria: Applicants will be prioritized if they have previously received $10,000 or less in total assistance from any combination of the following initiatives: Small Business Emergency Loan, Small Business Relief Grants, County Relief Grants, and the Movie Theater and Convention Center Grant program. The Northland Microfinance (NMF) team will verify eligibility through a review of state award databases.

Additionally, applicants must demonstrate financial hardship by showing either:

  • A reduction in gross revenue of 10% or more between 2021 and 2022, or,
  • A decrease in net income between the same years. Verification will be conducted through an examination of the applicant's tax returns for 2021 and 2022 by NMF staff.

Further considerations will be made for businesses that provide:

  • Detailed plans for how the funding will be allocated towards expenses such as payroll, rent/mortgage payments, utilities, equipment purchases, or other operational costs.
  • A concise explanation of how the grant will contribute to the longevity and success of the business.
  • Evidence of being negatively affected by factors such as racial/ethnic, gender, veteran status, or disability-based discrimination against the owner; civil unrest; limited access to financial resources; demographic declines or lack of economic variety within their community.

Special attention will also be given to businesses that are predominantly owned (at least 51%) by Black, Indigenous, People of Color, veterans, or women. For nonprofit organizations, a similar criterion applies: at least 51% of the Board of Directors must belong to one of the aforementioned groups.