Economic Development Grant Program

The Southern Minnesota Initiative Foundation (SMIF) has released its Economic Development Grant Program guidelines effective August 2025. SMIF is a regional philanthropic organization committed to fostering vibrant communities, advancing innovative and successful economies, and engaging citizens across southern Minnesota. Through this program, SMIF aims to strengthen community-based economic development and entrepreneurship. The grant program emphasizes building sustainable economies by supporting local organizations that invest in their people and infrastructure. The primary purpose of the Economic Development Grant is to fund projects that drive community economic development and entrepreneurship. This grant round has a special focus on projects that anchor local economic development efforts, particularly those that may be experiencing sudden funding losses or operational disruptions caused by external economic challenges. Unlike many grant programs, SMIF will consider both new proposals and existing work that demonstrates strong community benefit. Funding is intended to enable short-term stabilization and long-term strategic growth of local economic ecosystems. Applicants may request up to $20,000 in funding. Eligible applicants include IRS-designated 501(c)(3) nonprofit organizations, units or agencies of government, and public institutions such as school districts, colleges, or universities. Organizations that do not meet these criteria may still apply if they secure a qualified fiscal agent. All applicants must demonstrate a tangible benefit to SMIF’s 20-county region or to Native nations in the area. Projects must involve at least one collaborating partner and may include both new initiatives and existing programs. Proposals for strategic planning or short-term emergency general operating expenses are also permitted. The program requires a 100 percent match, with at least 25 percent provided in cash. Cash match must be secured and in-hand before SMIF releases grant funds. Matching resources may be sourced from a variety of partners, but each application must include formal letters of support from at least one project partner or collaborator. Letters from the applicant or fiscal agent themselves are not accepted. The presence of external collaboration is a key evaluation factor, reflecting SMIF’s commitment to community partnerships. Certain activities and organizations are explicitly excluded from consideration. Ineligible applicants include individuals, businesses, and other for-profit entities. Disallowed uses of funds include capital purchases, real estate, fixed assets, equipment, campaigns, endowments, deficit reduction, or reimbursement for completed projects. Other exclusions include services mandated by law, re-granting, loan pools, organizations with outstanding SMIF grant obligations, research projects, school internships, feasibility studies without measurable outcomes within a 12-month period, and routine municipal maintenance or planning functions. These restrictions ensure that funds are used for tangible and impactful development initiatives. Applications must be submitted using SMIF’s online system by October 10, 2025. The application requires a completed project proposal, a SMIF Project Budget Worksheet, and at least one letter of support from a project partner. Applicants are encouraged to present clear strategies for achieving measurable economic development outcomes. Awards will be announced on December 15, 2025. Questions about the program can be directed to Jennifer Heien, Entrepreneurship Administrative Coordinator, who can be reached at 507-214-7040 or by email at jenniferh@smifoundation.org. Applicants should carefully review guidelines and exclusions before submission to ensure eligibility and compliance with requirements.