Policymakers at the State Legislature passed a promising bill this session that will accelerate the economic engines that fuel inclusive growth and create jobs, while building generational wealth for people in marginalized communities.

Many of the businesses in areas such as the Lake Street Corridor of Minneapolis are owned by Black, Indigenous, Latine, and Asian people. Historically, these groups have struggled to gain access to capital in traditional lending markets. These same groups have not had the opportunity to build generational wealth, which is frequently used to capitalize a business. For instance, according to our Indicators of an Inclusive Economy, only 6% of bank loans go to majority-people of color neighborhoods despite these communities accounting for 13.8% of all Minneapolis-St. Paul neighborhoods.

The impact of these barriers is compounded by COVID-19 pandemic and the civil unrest that followed the murder of George Floyd. Across the Twin Cities, more than 1,500 businesses were either damaged or destroyed. In Minneapolis alone, more than 700 businesses were damaged. Altogether, this was the second costliest civil unrest in American history at an estimated $500 million. Some businesses have been able to recover, but there are still areas that are experiencing lack of access to essential brick and mortar shops such as grocery stores. 

In response to this, the Minnesota State Legislature, led by President Bobby Joe Champion, passed into law The PROMISE Act. The act is an ambitious effort that allocates $125 million in grants and loans over two years for many of the entrepreneurs most impacted by the economic climate of the past three years. This includes $94 million in “working capital” for businesses trying to survive and $30 million for more ambitious rebuilding projects.  

While this is an historic investment, so too is the severity and disproportionate nature of damage to the businesses, owners, employees and communities.  

The PROMISE Act was created to make grants and loans available outside of standard “ways of doing business,” which gives it a unique scope of community building. We at the Center believe the PROMISE Act will deliver needed resources and prove it is worthy of funding in future biennium. We also know that the impact of these investments can be further amplified through access to other forms of financial capital critical to business growth and the development of local, diverse, and resilient supply chains. Transformation requires business leaders to work alongside policymakers to dismantle structural barriers and support inclusive growth and prosperity.

The PROMISE Act is a great step toward committing public money to rebuilding communities damaged or impacted by civil unrest, COVID-19, structural racism, lack of access to capital, or have an aging or decreasing population. Businesses of color are also a part of vital economic corridors of commerce in the Twin Cities.

Please join the Center and share this opportunity with your networks and businesses you know that may be helped by this. Together, let’s build an inclusive economy.