Promise Loan Program

    Overview

    The Promise Loan Program makes loans to businesses, non-profit organizations, and developers in communities that have 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.

    This program was created by the 2023 Minnesota legislature. DEED is currently funding the partner organizations that will make the loans. Organizations have begun accepting loan applications from eligible recipients in early 2024.

    Program Requirements

    DEED provides funding to partner organizations, specifically the Minnesota Initiative Foundations and Metropolitan Economic Development Association (MEDA), to make loans to eligible recipients. An eligible recipient must:

    • Have primary operations located in the State of Minnesota
    • Have gross annual revenue of less than $1.5 million based on applicant's prior year taxes
    • 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. See the foundation information below.
    • MEDA has specific neighborhoods that will be eligible for the PROMISE Loan Program, located in North Minneapolis, South Minneapolis, and St. Paul. Promise Act Neighborhood Maps with geographic locations for eligibility.

    Eligible Project

    An ‘Eligible Project’ means the development, redevelopment, demolition, site preparation, predesign, design, engineering, repair, land acquisition, relocation, or renovation of real property or capital improvements. Eligible project includes but is not limited to construction of buildings, equipment purchases, infrastructure, related site amenities, landscaping, and street-scaping. Redevelopment does not include project costs that have received compensation or assistance available through insurance policies or from other organizations or government agencies.

    Loan Terms and Interest

    Promise loans can:

    • Be for no more than $1.5 million
    • Be for a term of no more than 20 years
    • Not charge an interest rate of more than 3%
    • Not be used for working capital or inventory; consolidating, or repaying, debt; or speculation or investment in rental real estate
    • Be subject to a loan origination fee of no more than 1% at the lender's discretion
    • Charge a monthly fee in lieu of interest at the lender's discretion

    Partner Organizations

    There are a number of partner organizations making loans pursuant to the Promise Loan Program. These organizations serve different communities and areas of the state.

    The following organizations are accepting applications, based on region. Below is the Organizations that are participating in the PROMISE Loan Program and the contact information:

    Initiative Foundation (IF)
    Zach Tabatt
    320-631-2006
    405 First Street SE
    Little Falls, MN 56345

    Metropolitan Economic Development Association (MEDA)
    Adrian Ruddock
    612-332-6332
    1256 Penn Avenue N, Suite 4800
    Minneapolis, MN 55411

    Northland Foundation (NF
    Michael Colclough
    218-723-4040
    202 W. Superior Street, Suite 800
    Duluth, MN 55802

    Northwest Minnesota Foundation (NWMF)
    Sarah Linda
    218-558-5327
    201 3rd Street NW
    Bemidji, MN 56601

    Southern Minnesota Initiative Foundation (SMIF)
    Benya Kraus
    507-214-7043
    525 Florence Avenue
    PO Box 695
    Owatonna, MN 55060

    Southwest Initiative Foundation (SWIF)
    Scott Marquardt
    320-583-9203
    15 3rd Avenue NW
    Hutchinson, MN 55350

    West Central Initiative Foundation(WCIF
    Greg Wagner
    218-739-2239
    1000 Western Avenue
    Fergus Falls, MN 56538

    For More Information

    For questions or a referral to a partner organization, contact Shaval Crooms, 651-259-7411 or shaval.crooms@state.mn.us.

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