Destination Medical Center (DMC) Economic Development Agency has been awarded $3 Million through the Minnesota Department of Employment and Economic Development (DEED) Main Street Economic Revitalization Program to provide no-cost grants for current or future businesses within the DMC boundary for capital improvement projects.
Projects that result in improvements to any permanent structure or other asset added to a property that adds to its value are eligible. Business operational expenses are not eligible. Acceptable capital investments include:
- Grants will be available to all businesses and organizations in the DMC District, but priority will be given to diverse population-owned businesses
- Applicants must secure 70% of the project cost
- Maximum reward of $750,000 per project
- Funds must be spent by end of August 2026
Prior to starting your application, you will need:
- Estimate of project expenses – examples: estimate from a General Contractor; estimates from many contractors (plumbing, design, etc.)
- Documentation of the secured 70% — examples: letter from lender(s); bank statement showing the amount needed; letter from investor; grant award letter(s); a combination of any
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Frequently Asked Questions
- What is the Main Street Economic Revitalization Grant Program?
This is a state-funded initiative intended to provide grants for capital improvement projects in central business districts across the state.
Projects that result in improvements to any permanent structure or other asset added to a property that adds to its value are eligible. Business operations expenses are not eligible. Applicants must also have other sources of funding to match any funds given by this program.
- Who is administering the grant program in Rochester?
The grant is administered by Destination Medical Center Economic Development Agency located in downtown Rochester. The DMC EDA applied for and secured the grant award with the support of the City of Rochester.
Eligible projects must be within the DMC District boundaries.
- Who may apply for funding?
Any person or company planning to invest in eligible capital projects in the DMC district may apply. Priority will be given to businesses and organizations that represent Disadvantaged Business Enterprises (DBE), veteran, disabled, Black, Indigenous, or people of color whose projects will build wealth, create jobs, and stabilize communities in the district.
- What organizations are not eligible for grant funding?
- A business manufacturing, distributing, selling or conducting related activities of sexually explicit materials.
- A business that derives income from passive investments without operational ties to operating businesses.
- A business whose activities are primarily focused on speculative activities that develop profits from fluctuations in price rather than through the normal course of trade.
- A business that earns more than half of its annual net revenue from lending activities.
- A business engaged in pyramid sales, where a participant’s primary incentive is based on the sales made by an ever-increasing number of participants.
- A business engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted.
- A business engaged in gambling enterprises unless the business earns less than 50% of its annual net revenue from lottery sales.
- What investments may be funded by the grant?
Capital investments, such as:
- Repair or renovation of property, including expansions and additions
- Demolition, site preparation, and building construction
- Landscaping, streetscaping and related site amenities
- Engineering, pre-design and design work
- What are the primary objectives?
- Revitalizing properties in the DMC district harmed by the events of the past two years.
- Elevating opportunities for BIPOC, veteran, Disadvantaged Business Enterprises, or disabled business and property owners.
- Creating and retaining permanent jobs.
- Enabling existing businesses to strengthen and diversify their products and services.
- Are funds available for projects already completed?
No. The grant funds are only available for new projects.
- What if I have already started the project?
The grant funds can’t be used for work already in progress. However, the funds can be used for work that has not yet been started. The work yet-to-be-done would need to be described in your application.
- What investments may NOT be funded by the grant?
The purchase of real estate is not eligible, nor are business operations or business operating expenses, such as inventory, wages, or working capital.
- How much is the DMC EDA’s grant award?
The DMC EDA will be distributing up to 3 million dollars in grants with a minimum award of $3,000 and a maximum of $750,000 per award. These grant awards can cover up to 30% of the project cost. The remaining funds must come from other sources.
For example, a $100,000 capital project can be awarded up to $30,000 in Main Street Grant funds. The remaining balance must be funded through other sources.
- What can be used for the matching funds?
Loans, equity, and local government funding not derived from state or federal sources can be used for the match.
- When can interested applicants apply for funding?
The DMC EDA intends to begin accepting applications no later than May 2022. DEED requires all funds to be awarded no later than Dec 31, 2024, and the projects must be completed by Dec 31, 2026.
- Who is providing the grant funding?
Funding is provided by the State of Minnesota Department of Employment and Economic Development.
- Why did the State of Minnesota initiate this program?
The grant program is intended to help central business districts physically rebuild and reposition themselves in the face of a substantially changing downtown economy.