The Minnesota Department of Employment and Economic Development (DEED) is making $62.5 million in grants available for small businesses that don’t require repayment. The deadline to apply is 5 p.m. Thursday, July 2.
The grants target businesses in several categories, including those with six or fewer full-time employees, minority-owned businesses, veteran-owned businesses, women-owned businesses and operators of indoor retail and food markets with an ethnic cultural emphasis. Each grant award is in the amount of $10,000.
Those with questions should contact DEED at https://mn.gov/deed/business/financing-business/deed-programs/relief/
Here is a description of the DEED Small Business Grant program. It should be noted that there have already been more requests than there are funds available, but it doesn’t matter on what date a grant proposal was submitted. DEED will conduct a random lottery among eligible applicants who submit their request prior to the July 2 deadline to award the grant funds.
DEED Small Business Grant
This program will make available $10,000 grants to Minnesotan-owned and operated businesses that can demonstrate financial hardship as a result of the COVID-19 outbreak. A total of $62.5 million is available. About 6,000 businesses may receive the grant. The following subcategories are established with funds earmarked:
- $18 million for businesses with six or fewer full-time employees
- $10 million for minority business enterprises
- $2.5 million for veteran-owned businesses
- $2.5 million for women-owned businesses
- $2.5 million for operators of indoor retail and food markets with an ethnic cultural emphasis
The application is open for ten days: June 23-July 2 at 5 p.m.
Applicants apply on the DEED website: mn.gov/deed/relief
Once the application closes on July 2, randomized, computer-generated lottery process will be initiated. DEED will in consult with the Minnesota Lottery and the process will be observed by an independent third party to select eligible businesses that will receive awards.
If selected through the randomized process, businesses will then be turned over to local and regionally based nonprofit organizations to gather supporting documents and make determinations on the award.
Funds will be dispersed to the approved business.
The process is anticipated to take four to six weeks before the funds are dispersed.
Grant funds received by individual businesses shall be used for working capital to support payroll expenses, rent, mortgage payments, utility bills, and other similar expenses that occur or have occurred since March 1, 2020, in the regular course of business. These are grants and no repayment will be required.