SF 4972

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2026 09:27 a.m.

A bill for an act
relating to economic development; modifying provisions in the PROMISE grant
program; amending Laws 2023, chapter 53, article 18, section 2, subdivision 4, as
amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2023, chapter 53, article 18, section 2, subdivision 4, as amended by Laws
2025, First Special Session chapter 6, article 4, section 31, is amended to read:

Subd. 4.

Grants to businesses.

(a) Partners shall make grants to businesses using criteria,
forms, applications, and reporting requirements developed by the partner organization and
approved by the commissioner.

(b) To be eligible for a grant under this subdivision, a business must:

(1) have primary business operations located in the state of Minnesota;

(2) be located in a community that has been adversely affected by structural racial
discrimination, civil unrest, lack of access to capital, a loss of population or an aging
population, or a lack of regional economic diversification; and

(3) have a gross annual revenue of $750,000 or less based on the prior taxable year.

(c) In addition to the requirements under paragraph (a), if a taxpayer's business meets
the requirements of paragraph (b), clause (2), and the business location is the taxpayer's
residence, the taxpayer must have claimed and been allowed the deduction under section
280A(c)(1) of the Internal Revenue Code, in the prior taxable year.

(d) Preference shall be given to businesses that did not receive previous assistance of
more than $10,000 cumulatively from the state under:

(1) the governor's Executive Order No. 20-15;

(2) Laws 2020, First Special Session chapter 1, section 4;

(3) Laws 2020, Seventh Special Session chapter 2, article 4 or 5; or

(4) Laws 2021, First Special Session chapter 10, article 2, section 22.

(e) Preference shall be given to businesses that are able to demonstrate financial hardship.

(f) Preference shall be given to businesses that were in operation in 2021 and had revenue
of $750,000 or less based on the prior year tax documentation submitted under paragraph
(b), clause (3).

(g) Grants under this subdivision must not exceed:

(1) $10,000 for businesses with a gross revenue in the prior year of $100,000 or less;

(2) $25,000 for businesses with a gross revenue in the prior year of more than $100,000
but no more than $350,000; and

(3) $50,000 for businesses with a gross revenue in the prior year of more than $350,000
but no more than $750,000.

(h) No business or individual may receive more than one grant under this section new text begin , except
that a business is eligible to receive additional grant amounts, subject to availability, by
submitting supplementary prior year tax documentation demonstrating revenue amounts
meeting the requirements of this subdivision had the applicant been in business for a full
year at the time of the original grant application new text end .

(i) Grant money may be used for working capital to support payroll expenses, rent or
mortgage payments, utility bills, equipment, and other similar expenses that occur in the
regular course of business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end