MN PROMISE Act – Round 2 Updates

Round 1 of the MN PROMISE Act is now closed. The Legislature is considering proposed changes to the program. These updates will affect eligibility, preference, and required documentation. We will know more after the current legislative session ends on May 19th. We tentatively 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

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 currently waiting for clarification from the State regarding some legislative changes and program guidelines. Final answers are expected after the legislative session ends on May 19th.

🔄 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?

📢 We’ll update this page once we receive confirmation.

While we wait for final guidance from the State of Minnesota, we encourage you to begin gathering the documents that we know will be required for Round 2.