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)
Amy Woitalewicz
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.