Update on Main Street
Economic Revitalization Partnership
First grant round to be announced in early 2022
This fall, the Minneapolis Foundation, Propel Nonprofits, and LISC Twin Cities received notice that the Minnesota Department of Employment and Economic Development (DEED) approved $21.26 million to fuel small business recovery and rebuilding in three Minneapolis business corridors that were among the areas worst hit by the combined impact of COVID-19 and the destruction following the murder of George Floyd: Lake Street, the area around 38th and Chicago in South Minneapolis, and West Broadway in North Minneapolis.
This funding is an important public investment in our community as it continues the long, hard work of transformative rebuilding. We are committed to distributing these resources in a way that is equitable and guided by community, listening closely to local business owners and residents in order to understand the most critical needs.
The core of this partnership will take the form of $18 million in grants that we will distribute to businesses and organizations through a process using priorities and criteria set by local communities along each of the three business corridors. These grants will go out in multiple rounds over the next two years, recognizing that some projects are shovel-ready now, with all other necessary funding streams in place, while others are still in development.
Currently, the Minneapolis Foundation, LISC, and Propel are working with DEED to finalize the terms of our contract with the state. At the same time, we are also working closely with a number of community partners, including stakeholders along each of the corridors, to develop grant guidelines and requirements, so we can hit the ground running once the state contract is signed. Our goal is to announce details of the first grant round in January.
This state funding will be paired with $30 million in loan funds provided by LISC and Propel. Loans will be overseen by LISC through a separate process that will be announced in the coming weeks.
It’s important to note that this state funding comes alongside a variety of recovery efforts begun in 2020 by the Minneapolis Foundation, Propel, LISC, and many other community partners. These investments include support flowing to local businesses through Propel’s Recovery Capital Loans, LISC’s Community Asset Transition (CAT) Fund, and investments made by the Minneapolis Foundation through the OneMPLS Fund and the Restore-Rebuild-Reimagine Fund. Even so, we recognize that these resources represent a small fraction of the total community need. That’s why, as we distribute these Main Street grants, we will also be raising more funds to expand the support we are able to provide.
You can read more about this state funding for revitalization in this recent Star Tribune story. We look forward to providing more information and details about the upcoming grant round as soon as they are available. Please continue to check the Minneapolis Foundation’s website for news and updates.