Grant Preference

Businesses can earn up to 3 preference points based on specific criteria outlined in the law. These points are used to prioritize applications during the grant review process. 

🏆 How It Works 

Every complete and eligible application is reviewed for the preference criteria below. Businesses receive 1 point for each criterion they meet. 

The more points a business earns, the higher their preference score, which increases their chances for receiving a grant. 

🔍 Preference Point Details

🟡 A. Previous Assistance: 1 Point 

Applicants receive 1 point if they got $10,000 or less in total from any of the following COVID-19 assistance programs: 

  • Minnesota Small Business Emergency Loan Program 

  • Minnesota Small Business Relief Grants 

  • County Relief Grants to Local Businesses 

  • Minnesota Movie Theater and Convention Center Grant 

✅ How to check your previous assistance: 

Click here to visit the Previous Assistance page to see how much funding you received. Minnesota Department of Employment and Economic Development (DEED) has created a dashboard to help you look up your past assistance if you're not sure. (Note this is for reference only. The review team will verify every applicant’s previous assistance and determine whether or not they receive this point).

🔵 B. Financial Hardship: 1 Point 

Applicants receive 1 point if their business experienced either of the following in the two most recently completed tax years: 

  • A 10% decline in gross revenue in the most recent tax year compared to the previous year, 
    OR 

  • A drop in net income in the most recent tax year compared to the previous year. 

📄 You must provide tax documents showing this change (for example, submit both 2024 and 2023 tax returns and tax transcripts). 

🟢 C. Operated in 2021: 1 Point 

Applicants receive 1 point if their business was operating in calendar year 2021. 

📄 You must provide your 2021 tax return and tax transcript as proof. 

🔍 Preference Point Examples

Business A received $9,000 total in COVID-19 assistance from the four programs listed above.
It experienced a 10% drop in gross revenue in 2024 compared to 2023.
It was operating in 2021.
✅ Meets all three criteria.
Total Preference Points: 3

Business B received $9,000 total in COVID-19 assistance from the four programs listed.
It was operating in 2021.
It did not have a 10% decline in gross revenue or drop in net income.
✅ Meets two criteria.
Total Preference Points: 2

Business C started in 2022.
It experienced a 10% drop in net income in 2024 compared to 2023.
It did not receive less than $10,000 in COVID-19 assistance and did not operate in 2021.
✅ Meets one criteria.
Total Preference Points: 1

🎲 Random Number Assignment

If two businesses in the same geographic area (like South Minneapolis or St. Paul) have the same preference score, a computer-generated random number between 1 and 10 million is used to determine the order of review. Businesses with a lower random number will be evaluated first.

For example:

  • Business D (Preference Score: 2) gets random number 50.

  • Business E (Preference Score: 2) gets random number 25.

Since 25 is lower, Business E’s application will be evaluated first.

 
⚠ Important: Because funding is limited, not all eligible applications will receive a grant. The process is designed to be fair and consistent. Outcomes can vary based on how each application compares to others. 

*Neither eligibility nor preference guarantees that a business will receive an award.

📢Please note that all details provided are subject to change. We will make every effort to communicate any updates or modifications as they occur.