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.
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?
A request for proposals (RFP) will be released in Fall 2024.
Full instructions will be published in the RFP.
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?
The full details will be published in the RFP. 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.
