Paul Nevanen and JoAnn Smith of K.E.D.A. on Lets Talk About It.
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. Once partnership organizations are selected and programs established property owners, businesses and developers will have the opportunity to request assistance from partner organizations serving their community.
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 communities across Minnesota since March 15, 2020
A total of $80 million is available in grants to partner organizations. No more than $40 million is available in the first round, Dates tor the second round have not yet been identified but will be March 1, 2022.
Main Street Revitalization Program Partner Organizations will be publicly announced Fall Of 2021 . Each partner organization Wili bo responsible for conducting outreach and soliciting request for assistance from property owners, businesses and developers.
Eligibility The following types of organizations are eligible to submit a proposal for grant funding as a partner organization.
o Foundations engaged in economic development o Community development financial institutions o 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. Praposals 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:
a Widespread arson and civil unrest a Natural disasters a Major plant closures, significant commercial vacancy increases, and/or loss of economic anchor
a COVID-19 pandemic impacts an 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 o 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.