PROMISE grant program provisions modifications

A bill for an act

relating to economic development; modifying provisions in the PROMISE grant

program; amending Laws 2023, chapter 53, article 18, section 2, subdivision 4, as

amended.

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

Section 1.

Laws 2023, chapter 53, article 18, section 2, subdivision 4, as amended by Laws

2025, First Special Session chapter 6, article 4, section 31, is amended to read:

Subd. 4.

Grants to businesses.

(a) Partners shall make grants to businesses using criteria,

forms, applications, and reporting requirements developed by the partner organization and

approved by the commissioner.

(b) To be eligible for a grant under this subdivision, a business must:

(1) have primary business operations located in the state of Minnesota;

(2) 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; and

(3) have a gross annual revenue of $750,000 or less based on the prior taxable year.

(c) In addition to the requirements under paragraph (a), if a taxpayer's business meets

the requirements of paragraph (b), clause (2), and the business location is the taxpayer's

residence, the taxpayer must have claimed and been allowed the deduction under section

280A(c)(1) of the Internal Revenue Code, in the prior taxable year.

(d) Preference shall be given to businesses that did not receive previous assistance of

more than $10,000 cumulatively from the state under:

(1) the governor's Executive Order No. 20-15;

(2) Laws 2020, First Special Session chapter 1, section 4;

(3) Laws 2020, Seventh Special Session chapter 2, article 4 or 5; or

(4) Laws 2021, First Special Session chapter 10, article 2, section 22.

(e) Preference shall be given to businesses that are able to demonstrate financial hardship.

(f) Preference shall be given to businesses that were in operation in 2021 and had revenue

of $750,000 or less based on the prior year tax documentation submitted under paragraph

(b), clause (3).

(g) Grants under this subdivision must not exceed:

(1) $10,000 for businesses with a gross revenue in the prior year of $100,000 or less;

(2) $25,000 for businesses with a gross revenue in the prior year of more than $100,000

but no more than $350,000; and

(3) $50,000 for businesses with a gross revenue in the prior year of more than $350,000

but no more than $750,000.

(h) No business or individual may receive more than one grant under this section
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, except

that a business is eligible to receive additional grant amounts, subject to availability, by

submitting supplementary prior year tax documentation demonstrating revenue amounts

meeting the requirements of this subdivision had the applicant been in business for a full

year at the time of the original grant application
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.

(i) Grant money may 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.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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