Stewardship
While safeguarding taxpayer dollars is both important and necessary, and while questions have been raised about how some public programs have been administered, the MN PROMISE Act was built with stringent oversight from its inception.
We steward state funds with extraordinary care, while also recognizing that broad labels and assumptions about all government programs or entire communities is harmful. It reinforces the same patterns of underinvestment this program was created to address.
This work requires both protecting public resources with rigor and intention, and also continuing to invest thoughtfully in small businesses that strengthen local economies, support jobs, and contribute to the long‑term health of our state.
Our application process includes robust fraud mitigation measures, which have successfully identified and removed suspicious applications from the review process. These safeguards help ensure funds are distributed fairly and reach eligible applicants.
Multi-Layered Review: Each application is reviewed multiple times by different team members to ensure accuracy and integrity. After internal review, applications are submitted to the State of Minnesota for additional oversight.
Comprehensive Documentation Requirements: Applicants must provide detailed documentation, including filed tax returns and proof of address within the eligible geography.
Identity Verification: Every applicant completes identity verification through Plaid, a trusted platform widely used by banks and financial institutions.
Community Partnerships: We collaborate with over a dozen community organizations located in and familiar with the eligible areas, strengthening local oversight.
Thorough Staff Training: All reviewing staff receive extensive training to ensure consistency and adherence to fraud mitigation protocols.
Verification and Consistency Checks: Applications that show inconsistencies across submitted documents or cannot be verified by our internal review team do not move forward in the standard review process.
Independent Financial Audit: Neighborhood Development Center, as the program administrator, engaged an independent auditing firm to review all financials, ensuring transparency and accountability.
According to the law, MN PROMISE Act grant funds are intended for working capital. This broad definition allows businesses flexibility to direct funds toward their most immediate operational needs. Applicants are required to identify their intended use of funds within established eligibility guidelines, helping ensure grant dollars are used appropriately and as intended.
Attestation of Intended Use: As part of the application process, applicants are required to describe how they plan to use MN PROMISE Act grant funds for eligible business expenses. They sign a legally binding grant agreement attesting that funds will be used only for eligible purposes. Based on application data, the most common intended uses of grant funds were payroll at 28.4 percent, equipment at 26.2 percent, and rent at 23 percent, reflecting the program’s focus on supporting regular business operations.
Follow‑Up, Documentation, and Tax Reporting: Applicants must keep detailed records of grant spending, reminded that MN PROMISE Act grants are taxable income that must be reported on federal and state tax filings. Awardees are provided with a worksheet to support tracking of eligible expenses and are informed that the State reserves the right to follow up to collect this documentation as part of follow-up reporting.