Starting a business can be costly and challenging, but in Minnesota, the Promise Act is helping entrepreneurs overcome those hurdles. Passed in 2023, the program provides grants and loans to small businesses across the state, boosting local economies and giving business owners a chance to grow and thrive. Funds are distributed through the Department of Employment and Economic Development and the six Minnesota Initiative Foundations, including the Southwest Initiative Foundation, which supports businesses in greater Minnesota.
Minnesota Senate President Bobby Joe Champion, who authored the bill, recently toured Willmar to meet with small business owners who have benefited from the program. Champion said the visit was an opportunity to hear real stories and see firsthand how the Promise Act has changed lives. “We want to hear from Minnesotans all across the state,” he said, emphasizing the importance of ensuring every community has a fair chance to benefit.
So far, businesses in the Southwest Initiative Foundation’s area have received a total of $595,000 in loans. Out of 292 grant applications submitted across 18 counties, 41 were approved. A second round of funding is now open, allowing more small businesses to apply for support.
One of the businesses visited during Champion’s tour was Happy Halal, a new sheep and goat processing facility in Willmar. Co-owner Rebecca Wierschke said their $400,000 loan made the business possible. “It felt like a life-and-death situation for us,” she said. “This loan saved us tens of thousands in interest and allowed us to move forward.” The funds helped the company purchase land in the Willmar Industrial Park and stay on track for expansion.
Another business that benefited from the Promise Act is Mubarak Food and Grocery, a local store serving the Somali community in downtown Willmar. The grant they received allowed the store to expand and better meet the needs of local families, reducing the need to travel to the Twin Cities for certain products.
Bar Path Crossfit, a popular gym that has served the Willmar community for more than a decade, also received a $100,000 loan. The funds helped owners Jason and Lourdez Schwab purchase the building they had been renting, keeping the gym in town. “We were in a position where we were either going to stay or go,” said Lourdez. “This loan allowed us to stay and continue building our community here.”
Champion said one of the biggest changes made to the Promise Act was extending the loan repayment period after feedback from small business owners who needed more time to pay back funds. “Because we made that tweak, it was helpful,” he noted. The program also set aside separate funding for different regions to ensure that rural areas could benefit equally, not just the Twin Cities.
For Champion, the tour was a reminder that economic programs are about more than numbers. “We don’t just want to think about this work on paper,” he said. “We want to see how the Promise Act is really affecting Minnesotans’ lives.”
With the second wave of applications now open, more businesses across Minnesota will have the chance to secure funding, expand, and strengthen their local communities. For more information, visit mnpromiseact.org or the Southwest Initiative Foundation at swifoundation.org.
