MN PROMISE Act – Round 2 Updates
Round 1 of the MN PROMISE Act has concluded. The Legislature is currently reviewing proposed changes to the program, which may impact eligibility, preferences, and required documentation. We anticipate having more information after the current legislative session ends on May 19, unless a special session is called. Tentatively, we expect to launch Round 2 in Summer 2025.
Below is a breakdown of:
What we currently know
What is still being decided by the legislature
What you can do now to begin preparing for Round 2
🗺️ Check My Location
Use our map to see if your business is in an area eligible for the MN PROMISE Act grant.
📬 Stay in the Loop
Sign up for our newsletter to get updates as soon as Round 2 details are confirmed.
What Do We Know Right Now?
✅ To be eligible, applicants must:
Established in 2021 or earlier based on their 2021 tax filing information
Be registered with the Minnesota Secretary of State (unless a sole proprietor using their own name)
Have $750,000 or less in gross revenue based on 2021 taxes and their most recently completed tax year
Be located in eligible areas of:
South Minneapolis
North Minneapolis
Saint Paul
Be actively operating at the time of application
Nonprofits must generate revenue like businesses and meet one of these criteria:
Definition A: A nonprofit organization that earns 30% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses.
Definition B: A nonprofit organization that earns 10% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses AND demonstrate they maintain ongoing customer-facing operations at a permanent physical location at which some of those sales take place.
Nonprofits also need three years of completed and filed taxes to apply. If your nonprofit did not file taxes, your organization is not eligible to apply.
🗓️ After the legislative session ends on May 19th, the State of Minnesota will finalize the program guidelines in alignment with the new legislation. The new laws will go into effect on July 1st, 2025. We will share more information once it becomes available.
What May Change In Round 2
We are awaiting clarification from the State on legislative changes and program guidelines. Final answers are expected after the legislative session concludes on May 19, unless a special session is called.
🔄 Still to be confirmed:
Will businesses need to show that they had operations in 2021 to be eligible?
Will the $750,000 gross revenue limit apply to 2021, or only to the most recent tax year?
How many years of tax returns will applicants need to submit?
What exact supporting documents will be required?
Will applicants with a commercial lease receive an additional preference point?