For Businesses

PHASE 2 OF THE MN PROMISE ACT GRANT PROGRAM WILL EXPAND TO INCLUDE UPTOWN BOUNDARIES (Scheduled to open August/September 2024).

The first round of the Promise Act ends on June 30th. Once this round has been completed, the NDC (include what it stands for??? Neighborhood Development Center?) will review the process and make necessary adjustments to the program before rolling out phase 2 of the Promise Act. We had planned to include a mapped area that identified the extended Uptown Area Phase 2; however, it was unavailable. As soon as the map is available, we will send it to you and include additional updated information prior to the application process.

There were a few changes to the original legislation introduced. Sen. Dibble informed that the original legislation for the expanded area includes applications for both grants and loans. The final legislation resulted in removing the available loan application and it only includes grant applications. At the next session, he is going to work towards including both grants and loans. The extended area in Uptown has been set aside to receive $1M dollars in grants to be distributed over the course of the remaining 3 rounds.

There are several steps throughout the application process, including multiple reviews for selecting recipients. Once all the initial steps are complete, each applicant will receive a score of 0 – 2; the highest score (based on the law and how the applicant answered the questions) and preference is given to businesses that:

• Did not receive more than $10k of COVID assistance, from the following programs: Minnesota Small Business Emergency Loan Program, Minnesota Small Business Relief Grants, Minnesota County Relief Grants to Local Businesses, and Minnesota Movie Theater and Convention Center Grant, and
• can demonstrate financial hardship; If the business can demonstrate a loss from year to year from the 2 years of taxes submitted

Once this step is completed, applicant information will be sent to DEED who will complete their final review and issue awarded financial reimbursement.

It is anticipated that Round 2 applications will be available mid to late August or possibly into September.

Uptown Association will be one of the participants in the ‘review table’ process to offer applicants guidance. We will be offering the following training sessions, some virtual, some in person:

• General Information Sessions
• Get Ready Workshops
• Application labs

We will continue to send informational updates prior to the opening of Phase 2. Please subscribe to stay in touch regarding this information.

Visit the MN Promise Act website for more information:  https://mnpromiseact.org/

Business Assistance with the City of Minneapolis

The City offers resources and step-by-step help for people who want to start, maintain or expand a business in the city. Visit their website.

FINANCIAL RESOURCES:

These are low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online at www.sba.gov/disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75% and the loans can be extended over 30 years.
Why this might make sense for you: The SBA EIDL can be used to maintain payroll, provide paid sick leave, meet increased costs, make rent or mortgage payments, as well as repay unmet expenses and obligations.

Businesses applying for the above SBA EIDL loan can request up to $10,000 be disbursed immediately. The amount need not be repaid, regardless of the loan decision. The form to apply for an advance is part of the new EIDL application. If you have already applied for an EIDL Loan and wish to apply for the advance, please fill out the new at www.sba.gov/disaster.

Why this might make sense for you: This advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.

The SBA PPP is a new federal $350 billion loan program for small businesses, self-employed people, and gig workers to help them from going under due to the COVID-19 pandemic. If employers maintain payroll, the loans would be forgiven.

Why this might make sense for you: If a self-employed person needs compensation or a business or nonprofit needs funds for employee compensation, including salaries, wages, commissions, or similar compensation; cash tips or equivalents; vacation, parental, family, medical, or sick leave; payment required for providing group health care benefits (including insurance premiums); payment of retirement benefits; and payroll taxes. Funding may also be used for payment of interest on mortgage obligations, rent, utilities, and interest on pre-existing debt obligations.

4. City of Minneapolis: Forgivable No-Interest Loans for Small Business 

This new Forgivable No-Interest Loans for Small Business will come in fixed amounts of $5,000 or $10,000, depending on need resulting from the COVID-19 emergency. Businesses must be located in a designated area of Minneapolis and have 20 or fewer employees and/or $1 million or less in annual revenue. Immigration status does not impact eligibility.