Minnesota Main Street Economic Revitalization Program
If your organization is a property owner, business, or developer seeking funds for your specific project or facility you are not eligible to apply directly to the State for this program. Partnership organizations are listed in the tab below. Once they have established their programs, property owners, businesses and developers will have the opportunity to request assistance from them directly.
DEED is no longer accepting proposals for this program. The request for proposals for the final round of this program was closed on November 22, 2024 and partner organizations have been selected.
Overview
The Minnesota Department of Employment and Economic Development (DEED) will oversee the Main Street Economic Revitalization Program approved by the Minnesota State Legislature and signed by Gov. Tim Walz on June 29, 2021.
This program, through a Request for Proposals, will make grants to nonprofit partner organizations to fund 30% matching grants up to $750,000 and guaranteed loans up to $2,000,000 to eligible recipients for eligible projects that are designed to address the greatest economic development and redevelopment needs that have arisen in communities across Minnesota since March 15, 2020.
A total of $80 million was available in grants to partner organizations across three rounds.
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Eligibility
The following types of organizations are eligible to submit a proposal for grant funding as a partner organization:
- Foundations engaged in economic development
- Community development financial institutions
- Nonprofit organizations engaged in housing and commercial development
Organizations seeking to serve as a partner organization must demonstrate in their proposal they have raised funds for the specific purposes of this program or will do so within 15 months of being awarded grant funds. Existing assets and state or federal funds may not be used to meet this requirement.
Partner organizations cannot receive financial assistance from this program for facilities or properties they own or lease. Partner organizations must establish a process of ensuring there are no conflicts of interest in determining awards under the program.
Local governments cannot receive funding from this program.
Project Service Areas
In the proposals, partner organizations will define a service area that includes one or more commercial corridors and/or areas of concentrated commercial activity that have been impacted by conditions that have arisen in the area since March 2020. Proposals will demonstrate how these conditions have resulted in the need for these funds to spur investment and increase commercial activity within those identified commercial corridors.
Specific qualifying conditions may include but are not limited to:
- Widespread arson and civil unrest
- Natural disasters
- Major plant closures, significant commercial vacancy increases, and/or loss of economic anchor institutions
- COVID-19 pandemic impacts on travel, tourism, retail and accommodation
Eligible Uses
Partner organizations receiving grant funds from this program can use the funds to establish a program within one or more commercial corridors to provide assistance to eligible recipient and projects within a defined service area.
Partner organizations can offer grants up to $750,000 per project or up to $2,000,000 in guaranteed loans. Leveraged grants can cover up to 30% project cost. Guaranteed loans will be guaranteed by the state up to 80% of the value of the loan.
Leverage grants and guaranteed loans can be used eligible recipients for the following:
- Repair, or renovation of real property
- Building construction
- Landscaping and streetscaping
- Demolition and site preparation
- Predesign and design
- Engineering
- Infrastructure
- Related site amenities
Eligible project expenses do not include the purchase of real estate or business operations or business operating expenses, such as inventory, wages, or working capital.
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Terms
Partner organizations must demonstrate they have raised funds for the specific purposes of this program or will do so within the 15-month period following the awarding of grant funds. Existing assets and state or federal funds may not be used to meet this requirement.
An eligible project must have secured commitments for all required matching funds and all required development approvals before a leveraged grant or proceeds from a guaranteed loan may be distributed.
The eligible project cost must be incurred by June 30, 2026.
Up to 4% of a grant made to a partner organization may be used by the partner organization for administration and monitoring of their program.
Leveraged grants
- Leveraged grants can cover up to 30% of an eligible project cost up to $750,000 in state grant funds.
- Grants must be matched with non-state funds at 200% of the state's portion of the grant.
- Matching funds may include but are not limited to funds contributed by a partner organization and insurance proceeds from an eligible recipient.
- Matching funds cannot include state or federal funds.
- Matching funds sourced from other assets and sources must be restricted for use exclusively through this program.
- An eligible project must have secured commitments for all required matching funds and all required development approvals before a leveraged grant may be distributed.
Loan Guarantees
- Partner organization can offer up $2 million loans per project guaranteed by the state, up to 80% of the value of the loan.
- Loan capital is sourced from other non-state or non-federal sources.
- Loan guarantees are for a maximum period of 15 years from the origination of the loan.
- DEED will use program funds to reserve 25% of the loan amount in the Loan Guarantee Trust Fund to pay out defaulted loans.
- The guaranteed portion of the loan may be subordinate to other loans made by lenders in the overall financing package.
- An eligible project must have all required development approvals before a guaranteed loan may be distributed.
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Webinars
Informational Sessions
DEED hosted an informational session during the Round 3 RFP process.
An informational session was held during the initial RFP process.
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FAQs
Below are Frequently Asked Questions regarding the Main Street Economic Revitalization Program. New information will be added as it becomes available. Please review this list of questions before sending any additional inquiries. Please check back frequently.
Partner Organization Eligibility
Who can apply to this program?
Only eligible partner organizations can submit proposals to DEED requesting funds from this program. Eligible partner organizations include foundations engaged in economic development, community development financial institutions, and nonprofit community development organizations engaged in commercial and residential development.
Businesses, property owners, and developers seeking assistance from this program will apply directly to a partner organization for assistance once the partner organizations are selected.
What financial capacity will partner organizations need to have to participate in this program?
In their proposal, partner organizations will need to demonstrate that they have identified committed sources of matching funds, either cash grants or loans, or will do so within 15 months of being awarded. Funds can be sourced from financing partners such as banks or from the contributions of eligible recipients themselves - whether that's through cash or loan proceeds. In addition, partner organizations will have to demonstrate they have the organizational experience and capacity to administer these funds.
Can for-profit organization apply to be a partner organization of this program?
No.
If our group is submitting a proposal as a team with multiple organizations do we need to identify a single lead applicant?
Yes. The proposal should identify a lead applicant that will also be the fiscal agent for the grant. Only the lead applicant needs to complete the risk assessment.
Applying for Funds
When and how do partner organizations apply for funding?
Applications are no longer being accepted. The final RFP round has closed.
Eligibility of Recipients
Can a business apply directly for the funds or does it have to go through a partner organization?
A business cannot apply directly to DEED for Mainstreet Revitalization Program funds. Once partner organizations have been selected, businesses and developers will have the opportunity to submit requests for assistance to the selected partner organizations. The list of partner organization selected to participate in this program will be posted on this page.
Is this a project-by-project application or can a partner organization submit a proposal for multiple potential projects?
Partner organizations are encouraged to submit proposals for programs that will serve multiple potential projects within a defined service area.
Can a business apply for multiple grant programs offered by the new DEED programs?
A business can apply for COVID relief grants and also apply for assistance from a partner organization participating in the Main Street Revitalization program.
Can nonprofit organizations be eligible recipients of grants and loans from this program?
Yes.
Would a local government's economic development authority be eligible to receive a grant or loan from a partner organization participating in this program?
No. A local government economic development authority would be considered a local government entity and is not eligible to receive grants or loans from this program.
If someone had already been granted to administer funds to recipients in previous rounds, can they apply again?
Yes, we fully expect and encourage past participants in this program to apply if they have a pipeline of projects that they believe are eligible for funding and deliver the impact we are seeking.
Can developers who have received funds for awarded projects in the previous rounds through a partner organization, are they eligible to apply for this round if it is a different and eligible project?
Yes.
Matching Contributions
Can recovery grants or loans to an eligible recipient used for working capital expenses be considered as matching funds towards leverage grants?
No. Only funds used for eligible capital costs can be considered as matching contributions toward a project receiving a leveraged grant from this program.
Can local government funding – not derived from state or federal sources – be an eligible source of matching funds for leveraged grants?
Yes.
Would the purchase of real estate count towards the matching requirements of leveraged grant to a project?
The purchase would not be counted as match. An eligible project does not include the purchase of real estate or business operations or business operating expenses, such as inventory, wages, or working capital.
Terms and Requirements
For projects receiving grants or loans from this program, do those projects have to comply with prevailing wage requirements?
Yes. Per 2020 Minn. Stat. 116.871, prevailing wage requirements under Minn. Stat. 177.41 through 177.44 apply to all recipients receiving more than $200,000 in grants or $500,000 in loan proceeds.
Can a partner organization submit proposals with service areas that overlap with another partner organization's proposed service area?
Yes. However, to the extent possible, partner organizations should coordinate with their community partners and local governments on defining service areas that avoid duplication of efforts and reduce market confusion among individuals and businesses that are seeking to receive assistance from this program.
The requirement that all costs must be incurred by June 30, 2026, could these be part of a component of a larger project that would be complete by that date? For example, just the soil work or engineering portion of a larger construction project that extends beyond June 30, 2026?
For our purposes, the project includes the matching funds, so when we think of project completion by June 30, 2026, we mean the grant funds and matching funds have been incurred by that date in order to count as project. If additional costs are beyond that date, such as an overmatch, and this grant award is for a small slice of a larger project after the date, that is allowable. You may be seeking funding for projects in its phases. Key things we are looking for include: Eligible expenses, time frame, and are the matching funds already secured.
Proposal Evaluation
How does DEED assess "need" for a specific geography area or community?
Generally, proposals will define one or more commercial corridors and/or areas of concentrated commercial activity that have been impacted by conditions that have arisen since March 2020. Qualifying conditions include but are not limited to:
- Widespread arson and civil unrest
- Natural disasters
- Major closures and commercial space vacancies
- COVID-19 impacts on travel, tourism, retail and accommodation
Eligible Uses for Grants and Loans
Can a partner organization use these funds to develop or redevelop a site or facility owned by that partner organization or any other partner organization?
No. Partner organizations must have a process of ensuring there are no conflicts of interest in determining awards under the program.
Can a partner organization award grants or loans for projects owned by a different partner organization participating in this program?
Yes. As long as the grantor organization meets the conflict of interest requirements of this program.
Does an eligible project and recipient need to be an existing business or business that was in business prior to March 2020 or can a new business receive assistance from this program?
New businesses and businesses that did not exist prior to March 2020 are eligible to participate as long as they meet all other program requirements.
What if my businesses was impacted but is not within the boundaries of a partner organization's defined service area: Am I eligible to receive assistance from this program?
No. All eligible recipients and projects must be within the geographic boundaries of the service area defined by a participating partner organization.
Are works of art, including murals, eligible expenses for projects receiving grants and loans from this program?
Works of art, including murals, are not eligible expenses for this program. However those costs can be considered as part of the matching contribution to any grants or loans to a recipient.
Are feasibility studies or other planning costs an eligible expense for projects receiving grants or loans from this program?
Predesign and design costs are eligible uses by recipients.
Are housing projects eligible?
Multifamily housing in a commercial corridor, such as mixed use space with residential, is eligible. Single family housing is avoided in this program. An eligible example of a housing project is a scenario of a historic downtown with underutilized housing or space above the first floor tenants that needs to be remodeled or brought up to code, this would be a good use of funds to refurbish or build the mixed use spaces.
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Partner Organizations and Awards
Award Visualization
Partnership Organizations - Round 3
Partner Organization Corridor/Service Area Contact Information African Career Education & Resources (ACER) Brooklyn Park and Brooklyn Center dbutler@acerinc.org
763-388-4796Destination Medical Center Economic Development Agency (DMC EDA) The DMC District and the Lowertown Neighborhood Destination Medical Center
allisonbowman@dmceda.org
507-216-9720Greater Bemidji Rail Corridor in Downtown Bemidji Greater Bemidji
dhengel@greaterbemidji.com
218-444-5757Greater Mankato Growth The Development focuses on the downtown Mankato-North Mankato area as well as those communities located along the key MN Hwy60 and US Hwy 14 & 160 corridors that connect the Greater Mankato Area to the rest of the state Greater Mankato MSERP
grants@greatermankato.com
507-385-6640Greater St. Cloud Development Corporation Downtown St. Cloud and Downtown Foley Greater St. Cloud
ldingmann@greaterstcloud.com
320-252-5228Initiative Foundation Multiple corridors including Isanti - approximately six by six blocks on either side of the Burlington Northern Railroad bed and includes roughly 43 parcels.
Braham - three blocks on either side (east and west) of Main Street, bounded on the north by 6th St NW and on the south by Hwy 107 NE and 8th St SE.
Cass Lake – Within the Leech Lake Band of Ojibwe Reservation (Main street from Ash Ave NW to the west, Railroad St NW to the south, 4th St NW to the north, and Neils Aune to the East.)
Walker – Main Street Walker, from Leech Lake south along 5th St N to Railroad Ave W, to Second Dt. N south to Michigan Ave, then west to a non-specific cart way, then North to Minnesota Ave W, then north on 6th St N until Leech Lake shoreline.
Little Falls – two blocks north and south of Trunk Hwy 27 between 6th St SW and 6th St NW
City of Isanti Community Development
shillesheim@cityofisanti.us
763-762-5761City of Braham
stahlke45@gmail.com or administrator@braham.com
320-496-8709Cass Lake and Walker Economic Development Center
cass.edc@casscountymn.gov or mike.paulus@casscountymn.gov
218-547-7262City of Little Falls
alexs@ci.little-falls.mn.us or mcdc@fallsnet.com
320-616-5500Latino Economic Development Center (LEDC) East St. Paul corridors Payne Avenue, Arcade Street, and East 7th LEDC
alma@ledcmn.org
612-724-5332Red Wing Downtown Main Street Development focus is Main Street to West 3rd Street. Boundaries are Levee Road to Plum Street and West Avenue to West 5th Street, including adjacent businesses. This represents the core commercial area, excludes the government campus, and overlaps with the Historic Downtown District Downtown Red Wing
megan@downtownredwing.org
Office: 651-385-7850
Cell: 612-807-0804Southern MN Initiative Foundation Northfield's Downtown Mainstreet corridor Southern MN Initiative Foundation Grants
brianc@smiffoundation.org or melissa@smiffoundation.org
507-455-3215Previous Partnership Organizations - Round 1 and 2
Partner Organization Description of Program Round Receiving Funding African Career Education & Resources (ACER) ACER aims to utilize these funds to support local micro-businesses with economic development and redevelopment projects located in Brooklyn Park and Brooklyn Center. The grant program is anticipated to launch in Fall 2022 and more details will be shared on ACER's website once the grant program is live. ACER supports the small and micro-businesses that are the economic backbone of BIPOC immigrant communities in the Northwestern suburbs. Our work includes connecting businesses to resources, providing free technical assistance and one-to-one business consulting, training for start-ups and new business owners, and distributing micro-grant funding and scholarships. 1 Center for Economic Inclusion The Center for Economic Inclusion is a nonprofit organization focused on closing racial employment, income, and wealth gaps, and building racially inclusive and equitable regional economies. The Center for Economic Inclusion will work with NEOO Partners, the Mustard Seed Fund, and Ramsey and Hennepin counties to support Black- and Latino-owned small businesses with financing to spur commercial development and redevelopment along specified metro corridors. 2 Chinese American Chamber of Commerce The Chinese American Chamber of Commerce (CACC-MN) is a nonprofit serving Asian American small businesses and community development in Minnesota. Through this funding CACC-MN plans to support economic development and redevelopment projects that deliver the most economic impacts in specified West Metro and West Metro suburban areas with the greatest needs due to conditions that have risen since March 15, 2020. 2 Destination Medical Center Economic Development Agency The Destination Medical Center Economic Development Agency supports the Destination Medical Center initiative in collaboration with the City of Rochester, RAEDI, and the DMC Corporation. This second round of funding will expand their Main Street Economic Revitalization initiative to provide grants to businesses on the outside of Rochester's central business district to support economic recovery from the impacts of the COVID-19 outbreak. 1, 2 Faribault Area Chamber of Commerce and Tourism The Faribault Area Chamber of Commerce and Tourism has served area businesses since 1913. The Chamber advocates for businesses, and builds community alliances with the goal of promoting growth and prosperity in the Faribault community. Working with partner organizations, the Faribault Area Chamber of Commerce and Tourism will provide grants to support economic development projects that deliver significant revitalized impact to the Faribault downtown area. 2 Greater Mankato Growth Inc. Foundation The Greater Mankato Growth, Inc. Foundation is a 501(c)3 foundation managed by Greater Mankato Growth, Inc. (GMG) – an organization focusing on supporting and promoting economic growth in the Greater Mankato area. Through this funding GMG will provide grants to businesses to support economic recovery from the impacts of the COVID-19 outbreak within key commercial corridors in the Greater Mankato area. 2 Heartland Lakes Development Commission The Heartland Lakes Development Commission facilitates economic growth in the region that includes Park Rapids, Nevis, Dorset, and Lake George. This second round of funding will expand their program to the City of Akeley, and to provide grants to additional businesses in the commercial districts of Park Rapids, MN and support economic recovery from the impacts of the COVID-19 outbreak. 1, 2 Initiative Foundation The Initiative Foundation is a Regional Community Foundation supporting economic and community development in 163 cities and 14 Counties across Central Minnesota. The foundation plans to support economic recovery projects in some of the following downtown/main street corridors: Little Falls, Cold Spring, Long Prairie, Brainerd, St. Cloud/East St. Cloud and Pine River. 2 Local Initiatives Support Corporation Local Initiatives Support Corporation (LISC) is the country's largest community development organization, with staff in 38 cities. LISC Duluth was founded in 1997. Local staff engage in neighborhoods with the highest racial and economic disparities in Duluth to provide a diverse range of loan and equity products for affordable housing, commercial real estate, community facilities, and business development to support job growth, and helps to equip entrepreneurs and local businesses with the resources they need to grow. LISC Duluth will fund projects to accelerate the recovery of two commercial corridors, the Downtown/Hillside corridor, and the Aviation corridors. 1 Minneapolis Foundation The Minneapolis Foundation is a community foundation supporting efforts to address the greatest civic, social and economic needs of Minneapolis and surrounding communities through grantmaking, research, advocacy and donor services. In partnership with LISC Twin Cities and Propel Nonprofits, the Minneapolis Foundation will use funding from DEED's Main Street Economic Revitalization Program to support small business recovery and rebuilding in three of the Minneapolis business corridors worst hit by the combined impact of COVID-19 and the destruction following the murder of George Floyd. Starting in Spring 2022, the Foundation will distribute $18 million to nonprofit and for-profit businesses, property owners, and developers advancing renovation or new construction projects near or along Lake Street, 38th Street and Chicago Avenue in South Minneapolis, and West Broadway Avenue in North Minneapolis. Their project will expand on their existing funding to include partnering with MEDA and others to provide grants and loans to businesses in expanded areas of Minneapolis and surrounding areas impacted by the social unrest of summer 2020 and impacts due to the COVID-19 pandemic. 1, 2 Northland Foundation The Northland Foundation is a foundation serving seven northeastern Minnesota counties: Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis, and all or parts of five Native nations with shared geography: Bois Forte Band of Chippewa, Fond du Lac Band of Lake Superior Chippewa, Grand Portage Band of Lake Superior Chippewa, Leech Lake Band of Ojibwe, and Mille Lacs Band of Ojibwe. The foundation plans to support economic development and redevelopment projects that deliver the most economic impact for the rural communities and Tribal Nations of Northeast Minnesota, with the greatest needs due to conditions that have risen since March 15, 2020. 2 Northwest Minnesota Foundation Northwest Minnesota Foundation is one of the six Minnesota Initiative Foundations and serves the Northwest Minnesota community. Their project plans to provide grants and loans to businesses within the commercial corridors of Bemidji, East Grand Forks and the Highway 59 corridor within White Earth Nation boundaries, to support economic recovery from the impacts of the COVID-19 outbreak. 2 Saint Paul and Minnesota Foundation This grant opportunity will serve the following commercial corridors in Saint Paul: 1. Snelling-University-Rice Cultural District, 2. East Side community, and 3. West Seventh Street. Grant funds will be used to support economic recovery projects led by nonprofits and businesses that respond to COVID-19 impacts, major closures and/or vacancies in the corridor, and widespread property damage due to civil unrest. Projects led by and serving Black, Indigenous, Asian, Latino, new Americans, immigrants, refugees, people with disabilities, LGBTQI communities, veterans, low-income communities or other under-represented and under-served populations will be given priority in funding. 1 Southern Minnesota Initiative Foundation Southern Minnesota Initiative Foundation (SMIF) invests for economic growth in the 20 counties of south central and southeastern Minnesota. Their project will provide grants in the hospitality, retail, and childcare industries specifically in the commercial corridors of Northfield, Blooming Prairie and other Southern Minnesota regions to support economic recovery from the impacts of the COVID-19 outbreak and natural disasters since March 15, 2020. 2 Southwest Initiative Foundation Southwest Initiative Foundation is a rural, regional community foundation serving the 18 counties and two Native Nations of Southwest Minnesota. Their project will expand on their existing funding to provide grants to businesses in the commercial corridors of Willmar, Marshall and Montevideo to support the economic recovery from the impacts of COVID-19. 1, 2 Virginia Community Foundation The Downtown Commercial Rehabilitation Program provides financial assistance to eligible downtown building owners for the renovation, rehabilitation and expansion of commercial properties located in the City-designated Redevelopment District. The Downtown Virginia Redevelopment Corridor was hit very hard by COVID-19 pandemic-related economic distress due to the forced closure of most small businesses in March 2020. Funds from the MSERP will be used to redevelop two downtown businesses destroyed by a fire July 2021; to redevelop two new mixed-use buildings to fill two vacant lots and remediate a substandard building; and to construct a new 131-unit Marriott hotel by a minority-owned business. These projects will begin the spring of 2022. 1 West Central Initiative Foundation West Central Initiative is a nonprofit community foundation that serves the western Minnesota region. Their project plans to support corridors and communities that were significantly impacted by COVID-19 shutdowns and whose economies rely on summer tourism from the West to the lakes area, including communities of Browns Valley and Morris, and communities intersected by State Highway 10 from Moorhead to Bluffton. 2 Winona Area Chamber of Commerce The Winona Area Chamber of Commerce is a 501(c)3 that plans to provide grants to qualifying businesses/capital development projects in downtown Winona, with the goal of supporting the economic recovery from the impacts of the COVID-19 outbreak. 2 -
Contact
Please review the list of Frequently Asked Questions section before contacting us. Please note that, due to a high volume of inquiries, we may not be able to respond to individual questions promptly. We will read all questions and will post answers on the FAQ as soon as possible. Check the FAQ regularly for updates.
If you still have a question, email MSERP.DEED@state.mn.us.