PROMISE grant program prior appropriations terminated.

A bill for an act

relating to economic development; terminating prior appropriations to the

PROMISE grant program; amending Laws 2025, First Special Session chapter 6,

article 1, section 2, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2025, First Special Session chapter 6, article 1, section 2, subdivision 2,

is amended to read:

Subd. 2.

Business and Community Development

50,693,000

44,345,000

Appropriations by Fund

General

48,393,000

42,045,000

Remediation

700,000

700,000

Workforce

Development

1,600,000

1,600,000

(a) $2,287,000 each year is for the greater

Minnesota business development public

infrastructure grant program under Minnesota

Statutes, section
116J.431
. This appropriation

is available until June 30, 2029.

(b) $350,000 each year is for the

administration of the Energy Transition Office

under Minnesota Statutes, section
116J.5491
.

(c) $500,000 each year is for grants to small

business development centers under Minnesota

Statutes, section
116J.68
. Money made

available under this paragraph may be used to

match funds under the federal Small Business

Development Center (SBDC) program under

United States Code, title 15, section 648, to

provide consulting and technical services or

to build additional SBDC network capacity to

serve entrepreneurs and small businesses.

(d) $2,725,000 each year is for the small

business assistance partnerships program

under Minnesota Statutes, section
116J.682
.

All grant awards shall be for two consecutive

years. Grants shall be awarded in the first year.

The department may use up to five percent of

the appropriation for administrative purposes.

The base for this appropriation is $1,725,000

in fiscal year 2028 and each year thereafter.

(e) $1,772,000 each year is for contaminated

site cleanup and development grants under

Minnesota Statutes, sections
116J.551
to

116J.558
. This appropriation is available until

June 30, 2029. The base for this appropriation

is $1,022,000 in fiscal year 2028 and each year

thereafter.

(f) $700,000 each year is from the remediation

fund for contaminated site cleanup and

development grants under Minnesota Statutes,

sections
116J.551
to
116J.558
. This

appropriation is available until June 30, 2029.

(g) $139,000 each year is for the Center for

Rural Policy and Development.

(h) $25,000 each year is for the administration

of state aid for the Destination Medical Center

Corporation under Minnesota Statutes,

sections
469.40
to
469.47
.

(i) $710,000 the first year and $711,000 the

second year are for the host community

economic development program established

in Minnesota Statutes, section
116J.548
. The

base for this appropriation is $875,000 in fiscal

year 2028 and each year thereafter.

(j)(1) $1,500,000 each year is for grants to

local communities to increase the number of

quality child care providers to support

economic development. Fifty percent of grant

funds must go to communities located outside

the seven-county metropolitan area as defined

in Minnesota Statutes, section
473.121,

subdivision 2
.

(2) Grant recipients must obtain a 50 percent

nonstate match to grant funds in either cash

or in-kind contribution, unless the

commissioner waives the requirement. Grant

funds available under this paragraph must be

used to implement projects to reduce the child

care shortage in the state, including but not

limited to funding for child care business

start-ups or expansion, training, facility

modifications, direct subsidies or incentives

to retain employees, or improvements required

for licensing, and assistance with licensing

and other regulatory requirements. In awarding

grants, the commissioner must give priority

to communities that have demonstrated a

shortage of child care providers.

(3) Within one year of receiving grant funds,

grant recipients must report to the

commissioner on the outcomes of the grant

program, including but not limited to the

number of new providers, the number of

additional child care provider jobs created, the

number of additional child care slots, and the

amount of cash and in-kind local funds

invested. Within one month of all grant

recipients reporting on program outcomes, the

commissioner must report the grant recipients'

outcomes to the chairs and ranking minority

members of the legislative committees with

jurisdiction over early learning and child care

and economic development.

(k) $500,000 each year is for the Office of

Child Care Community Partnerships. Of this

amount:

(1) $450,000 each year is for administration

of the Office of Child Care Community

Partnerships; and

(2) $50,000 each year is for the Labor Market

Information Office to conduct research and

analysis related to the child care industry.

(l) $1,000,000 each year is for grants in equal

amounts to each of the Minnesota Initiative

Foundations. This appropriation is available

until June 30, 2029. The Minnesota Initiative

Foundations must use grant money under this

paragraph to:

(1) facilitate planning processes for rural

communities resulting in a community solution

action plan that guides decision making to

sustain and increase the supply of quality child

care in the region to support economic

development;

(2) engage the private sector to invest local

resources to support the community solution

action plan and ensure quality child care is a

vital component of additional regional

economic development planning processes;

(3) provide locally based training and technical

assistance to rural child care business owners

individually or through a learning cohort.

Access to financial and business development

assistance must prepare child care businesses

for quality engagement and improvement by

stabilizing operations, leveraging funding from

other sources, and fostering business acumen

that allows child care businesses to plan for

and afford the cost of providing quality child

care; and

(4) recruit child care programs to participate

in quality rating and improvement

measurement programs. The Minnesota

Initiative Foundations must work with local

partners to provide low-cost training,

professional development opportunities, and

continuing education curricula. The Minnesota

Initiative Foundations must fund through local

partners an enhanced level of coaching to rural

child care providers to obtain a quality rating

through measurement programs.

(m) $4,954,000 the first year and $4,955,000

the second year are for the Minnesota job

creation fund under Minnesota Statutes,

section
116J.8748
. Of this amount, the

commissioner of employment and economic

development may use up to three percent for

administrative expenses. This appropriation

is available until June 30, 2029. The base for

this appropriation is $5,600,000 in fiscal year

2028 and each year thereafter.

(n) $12,370,000 each year is for the Minnesota

investment fund under Minnesota Statutes,

section
116J.8731
. Of this amount, the

commissioner of employment and economic

development may use up to three percent for

administration and monitoring of the program.

This appropriation is available until June 30,

2029. Notwithstanding Minnesota Statutes,

section
116J.8731
, money appropriated to the

commissioner for the Minnesota investment

fund may be used for the redevelopment

program under Minnesota Statutes, sections

116J.575
and
116J.5761
, at the discretion of

the commissioner. Grants under this paragraph

are not subject to the grant amount limitation

under Minnesota Statutes, section
116J.8731
.

(o) $1,246,000 each year is for the

redevelopment program under Minnesota

Statutes, sections
116J.575
and
116J.5761
.

(p) $12,000 each year is for a grant to the

Upper Minnesota Film Office.

(q) $4,195,000 each year is for the Minnesota

job skills partnership program under

Minnesota Statutes, sections
116L.01
to

116L.17
. If the appropriation for either year

is insufficient, the appropriation for the other

year is available. This appropriation is

available until June 30, 2029.

(r) $1,350,000 each year from the workforce

development fund is for jobs training grants

under Minnesota Statutes, section
116L.41
.

(s) $250,000 each year is for the publication,

dissemination, and use of labor market

information under Minnesota Statutes, section

116J.401
.

(t) $750,000 each year is for the CanNavigate

program established under Minnesota Statutes,

section
116J.6595
. Of this amount, up to four

percent may be used for administrative

purposes. Any unencumbered balances

remaining in the first year do not cancel but

are available for the second year.

(u) $500,000 each year is for a grant to

MNSBIR, Inc., for support of the small

business research and development goals

provided in Minnesota Statutes, section
3.222
.

This appropriation is onetime and is available

until June 30, 2027.

The purpose of the grant is to support moving

scientific excellence and technological

innovation from the lab to the market for

startups and small businesses by securing

federal research and development funding to

build a strong innovation economy and

stimulate the creation of novel products,

services, and solutions; strengthening the role

of startups and small businesses in meeting

federal research and development needs;

increasing the commercial application of

federally supported research results; and

developing and increasing the Minnesota

workforce, especially by fostering and

encouraging participation by small businesses

owned by people who are Black, Indigenous,

People of Color, and women.

MNSBIR, Inc. shall use grant money to

become the federal research and development

dedicated resource for Minnesota small

businesses to support research and

commercialization of novel ideas, concepts,

and projects to develop cutting-edge products

and services for worldwide economic impact.

Grant money shall be used to:

(1) assist startups and small businesses in

securing federal research and development

funding including the small business

innovation research and small business

technology transfer programs;

(2) support technology transfer and

commercialization from the University of

Minnesota, Mayo Clinic, and federal

laboratories;

(3) collaborate with corporate venture groups

and large businesses nationally;

(4) conduct statewide outreach, education, and

training on federal rules, regulations, and

requirements;

(5) assist with scientific and technical writing;

(6) help manage federal grants and contracts;

and

(7) support cost accounting and federal

sole-source procurement opportunities.

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(v) $5,523,000 the first year is for the

PROMISE grant program. This appropriation

is available until June 30, 2029. Of this

amount:

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(1) $1,105,000 the first year is for grants in

equal amounts to each of the Minnesota

Initiative Foundations to serve businesses in

greater Minnesota. Of this amount, $88,000

is for grants to businesses with less than

$100,000 in revenue the prior year; and

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(2) $4,418,000 the first year is for grants to

the Neighborhood Development Center. Of

this amount, the following amounts are

designated for the following areas:

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(i) $1,105,000 the first year is for North

Minneapolis' West Broadway, Camden, and

other Northside neighborhoods. Of this

amount, $88,000 is for grants to businesses

with less than $100,000 in revenue in the prior

year;

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(ii) $1,105,000 the first year is for South

Minneapolis' Lake Street, 38th and Chicago,

Franklin, Nicollet, and Riverside corridors.

Of this amount, $88,000 is for grants to

businesses with less than $100,000 in revenue

in the prior year;

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(iii) $1,104,000 the first year is for St. Paul's

University Avenue, Midway, Eastside, or other

St. Paul neighborhoods. Of this amount,

$88,000 is for grants to businesses with less

than $100,000 in revenue in the prior year;

and

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(iv) $1,104,000 the first year is for grants to

businesses in the counties of Anoka, Carver,

Dakota, Hennepin, Ramsey, Scott, and

Washington, excluding the cities of

Minneapolis and St. Paul.

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The base for this appropriation is $1,402,000

in fiscal year 2028 and each year thereafter.

Of this amount, $281,000 each year is for the

purposes of clause (1); $1,121,000 each year

is for the purposes of clause (2); $281,000

each year is for the purposes of clause (2),

item (i); $280,000 each year is for the purposes

of clause (2), item (ii); $280,000 each year is

for the purposes of clause (2), item (iii); and

$280,000 each year is for the purposes of

clause (2), item (iv).

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(w)
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(v)
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$500,000 each year is for a grant to

the Neighborhood Development Center (NDC)

to support small business programs, including

training, lending, business services, and real

estate initiatives. Money may be used to assist

organizations outside of the seven-county

metropolitan area with technical assistance

and grants to help implement elements of

NDC's small business support model; provide

one-on-one technical assistance for

entrepreneurs; and support the operations and

marketing of a cybersecurity center. This is a

onetime appropriation. Any unencumbered

balance remaining at the end of the first year

does not cancel and is available for use in the

second year.

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(x)
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(w)
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$627,000 the first year is for a grant

to Community and Economic Development

Associates (CEDA) to provide funding for

economic development technical assistance

and economic development project grants to

small communities across rural Minnesota and

for CEDA to design, implement, market, and

administer specific types of basic community

and economic development programs tailored

to individual community needs. Technical

assistance grants shall be based on need and

given to communities that are otherwise

unable to afford these services. Of the amount

appropriated, up to $270,000 may be used for

economic development project implementation

in conjunction with the technical assistance

received. This is a onetime appropriation. Any

unencumbered balance remaining at the end

of the first year does not cancel but is available

the second year.

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(y)
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(x)
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$200,000 the first year is for a grant to

the African Development Center for

capacity-building initiatives to support small

business growth and sustainability. This is a

onetime appropriation and is available until

June 30, 2027.

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(z)
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(y)
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$250,000 each year is for a grant to

Enterprise Minnesota, Inc. to directly invest

in Minnesota manufacturers under the Made

in Minnesota program under Minnesota

Statutes, section
116O.115
. This is a onetime

appropriation.

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(aa)
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(z)
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$250,000 each year is for a grant to

Enterprise Minnesota, Inc., to reach and

deliver talent, leadership, employee retention,

continuous improvement, strategy, quality

management systems, revenue growth, and

manufacturing peer-to-peer advisory services

to small manufacturing companies employing

250 or fewer full-time equivalent employees

and for operations of Enterprise Minnesota.

This is a onetime appropriation. No later than

February 1, 2026, and February 1, 2027,

Enterprise Minnesota, Inc. must provide a

report to the chairs and ranking minority

members of the legislative committees with

jurisdiction over economic development that

includes:

(1) the amount of money awarded during the

past 12 months;

(2) the estimated financial impact of the

money awarded to each company receiving

service under the program;

(3) the actual financial impact of the money

awarded during the past 24 months; and

(4) the total amount of federal money

leveraged from the Manufacturing Extension

Partnership at the United States Department

of Commerce.

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$250,000 each year is for a grant to

the Coalition of Asian American Leaders to

support outreach, training, technical assistance,

peer network development, and direct financial

assistance targeted to Asian Minnesotan

women entrepreneurs and Asian-owned

businesses. This is a onetime appropriation

and is available until June 30, 2028.

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(cc)
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$250,000 each year from the

workforce development fund is for a grant to

WomenVenture to support child care providers

through business training and shared services

programs and to create materials that may be

used, at no cost to child care providers, for

start-up, expansion, and operation of child care

businesses statewide, with the goal of helping

new and existing child care businesses in

underserved areas of the state become

profitable and sustainable.

Of this amount, up to five percent may be used

for WomenVenture's technical assistance and

administrative costs. This is a onetime

appropriation and is available until June 30,

2028.

By December 15, 2028, WomenVenture must

submit a report to the chairs and ranking

minority members of the legislative

committees with jurisdiction over agriculture

and employment and economic development.

The report must include a summary of the uses

of the appropriation, including the amount of

the appropriation used for administration. The

report must also provide a breakdown of the

amount of funding used for loans, forgivable

loans, and grants; information about the terms

of the loans issued; a discussion of how money

from repaid loans will be used; the number of

entrepreneurs assisted; and a breakdown of

how many entrepreneurs received assistance

in each county.

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(dd)
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(cc)
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$250,000 each year is for a grant to

the Latino Economic Development Center to

assist, support, finance, and launch

microentrepreneurs by delivering training,

workshops, and one-on-one consultations to

businesses; and to guide prospective

entrepreneurs in their start-up process by

introducing them to key business concepts,

including business start-up readiness. Grant

proceeds must be used to offer workshops on

a variety of topics throughout the year,

including finance, customer service,

food-handler training, and food-safety

certification. Grant proceeds may also be used

to provide lending to business startups. This

is a onetime appropriation and is available

until June 30, 2027.

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(ee)
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(dd)
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$150,000 each year is for a grant to

Isuroon for the following:

(1) providing loans to microbusinesses to

promote entrepreneurship and economic

growth in underserved communities;

(2) awarding grants to microbusinesses to

support start-up costs, capacity building, and

business sustainability;

(3) delivering technical assistance and training

to entrepreneurs, including support for

business operations, financial management,

and development strategies; and

(4) establishing and operating a business

incubator program to support microbusinesses

with shared resources, mentorship, and access

to professional networks.

This is a onetime appropriation and is

available until June 30, 2027.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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Sec. 2.
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FUNDING TERMINATION.
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Funding for the PROMISE grant program is terminated. Any remaining money is canceled

back to the general fund.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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